

Business insurance is a must-have for any company, no matter the size. Business owners have a lot to lose if disaster strikes. Insurance can help entrepreneurs rebuild and recover after something happens that causes damage or losses.
Unfortunately, few businesses in Papua New Guinea have insurance; less than 5% of PNGs have active policies, according to The Centre for Excellence in Financial Inclusion.
"Insurance acts as a safety net for individuals and businesses in times of loss, accidents and crisis," explained Saliya Ranasinghe, CEFI Executive Director, according to the organisation. "In such situations, insurance can provide people with much-needed funds to help them recover from insurable events and to re-establish their livelihoods and businesses."
One challenge small-business owners may encounter when reviewing their policy options is how complex insurance products really are. Working with a broker can help entrepreneurs understand the benefits of insurance, and assist in securing the right policies for their companies.
What is a broker?
A broker is an expert in insurance and risk management. They represent the customer – known as the policyholder – rather than insurance agencies, which means they're most concerned with the benefits of a policy to the customer.
What do brokers do?
The biggest benefits of working with brokers are their:
- Knowledge of the many insurance policies available to small businesses.
- Understanding of risks that companies face but may not be aware of.
- Connections with numerous insurance agencies.
Here are the specific advantages that these benefits provide small-business owners:
Explain what insurance options are available
Business insurance isn't just one product; there are many forms of insurance that benefit businesses. Small-business insurance policies might include:
- Workers' compensation.
- Motor vehicle insurance.
- Public liability insurance.
- Earthquake insurance.
- Cyber insurance.
- Physical asset protection.
There are many other options that businesses might need to cover the risks they're exposed to. Brokers are well-versed in the many policy options that entrepreneurs have available to them, and can explain the benefits and details of each.
Evaluate business's risk levels
Small businesses are exposed to numerous risks. Some are obvious, like the risk of hail damage in an area prone to hailstorms. Other types of risk might be overlooked, like the potential for a far-away criminal to illegally access information stored on company computers.
Brokers are knowledgeable in the many forms of risk that companies face, and can help small-business owners evaluate and understand those that they're exposed to.
Negotiate fair rates with insurance companies
Because of their relationships with various insurance companies, brokers can effectively negotiate fair rates on insurance policies for their customers. This helps small-business owners save money on the insurance products they need to keep their companies protected.
Create insurance policies that meet business needs
Brokers have relationships with multiple insurance companies because not every agency has the perfect policies for every customer. By working with numerous companies, brokers can put together insurance packages that reflect the actual risks that businesses face.
Since brokers are able to craft unique policies for their customers, they prevent entrepreneurs from being overinsured, which can be unnecessarily expensive, or underinsured, which can be problematic when a damaging event occurs that isn't covered by their policy.
Small-business insurance with Trans Pacific Assurance Limited
Investing in an insurance policy is one of the best ways to protect your company against unexpected damages and losses. To learn about the types of insurance packages that can benefit your company, contact Trans Pacific Assurance Limited. Our insurance professionals will review your company with you to determine the best policy for your needs.