If you are naturally a “worst-case-scenario” type of person, you have probably run through all the possible things that could go wrong as your precious goods are sent across oceans and around the world. Any time you take make a big move to expand your business, there is some risk involved. The good news is that the right insurance can help to protect both your cargo and your employees so that there is a good chance that your big risk will reap a big reward.
Here is what you need to know about insuring your export business:
Don’t forget about insuring your employees.
While goods are the face of the export business, it also relies heavily on people, which means that you also need to take into account the health and well-being of the people who make your business tick. It all begins with adequate worker’s compensation insurance. To make things more difficult, regulations vary from state to state, which makes it important that you work with a reputable and experienced insurance agent who can make sure that you have the right coverage.
Worker’s compensation insurance will cover the cost of any injury or illness an employee experiences as a result of working for your company. Without this insurance, a simply accident on the job could end up seriously derailing your entire business.
Export Credit Risk Insurance
The Export-Import Bank of the United States sells different types of export credit risk insurance that are designed to cater to the needs of new exporters all the way to enterprise level businesses. This insurance helps to protect you if a buyer decides not to pay you once the goods arrive. These policies were put in place to help encourage exporters to do businesses in non-traditional markets that may present more risk. You can choose from among small business policies, umbrella policies and a short-term single-buyer policy. Be sure to do your research and work with the bank to determine your best option.
Hopefully, your cargo will arrive on time and completely in-tact, but if something does go wrong, cargo insurance will help cover the cost of lost or damaged merchandise and help you stay afloat if significant time and profits are also lost in the process. Perhaps most importantly. cargo insurance provides you with peace of mind. If you are a small business putting a lot of money into expanding your export efforts, the thoughts of what could go wrong are enough to drive anyone crazy. Instead of wasting time worrying, you can rest assured that you are protected in the case of disaster, which means you can concentrate on the daily challenges of running your business.
The key to adequate coverage is to make sure that you have all three of the insurance coverage types mentioned above. While one is a good start, you will want to invest in all three so that every aspect of your business, from employees to cargo, is thoroughly protected. Taking the time to research and invest in insurance could make the difference in whether your export business succeeds.