Risks and business activity go together. Dangers of all kinds, such as cyberattacks or physical sabotage, the possibility of suffering mishaps in the form of fires, floods, accidents that cause damage to the company or third parties, or legal or financial problems are, unfortunately, possible and relatively common. Hence, the crucial importance for any SME of having insurance policies that offer security and cover any contingency.

Insurance policies for SMEs. Discover the essential ones

The range of potential risks that threaten companies in general and SMEs in particular is wide and, for this reason, there are many types of insurance on the market, offering different types of cover.

Below, we list the insurance policies that, in our opinion, every SME should take out to have protection against the commonest risks, reducing the likelihood of their occurrence and, if they should occur, entitling them to compensation that will minimise their consequences.

Cyber-risk insurance

In the last decade, cyberattacks have increased dramatically with third parties trying to access private information held by companies for illegal purposes: using personal or sensitive data for fraudulent purposes, altering information or destroying it.

Unfortunately, SMEs are targeted by hackers and cybercriminals, who know that most do not have protection systems or have systems that are insufficient or inadequate. It is estimated that 70% of cyberattacks are aimed at SMEs, causing significant financial damage and losses in most cases.

The first type of insurance that an SME should think about is therefore cyber-risk insurance. It is advisable to take out a policy that includes advice and prevention to try, first and foremost, to avoid attacks (protective software, backups, advice on data protection). Of course, good insurance must also offer compensation for damage to third parties due to data leaks and compensation for damage caused by viruses, financial losses caused by interruptions to business, etc.

Civil Liability Insurance for SMEs and self-employed workers

The activity of an SME can cause various types of damage to third parties. The commonest are material damage (e.g. flooding caused by the pipes in premises where a business activity is carried out) or physical damage (accidents caused by vehicles or machinery). Damage caused by professional errors can also occur, such as those committed by a doctor or lawyer.

The best way to protect yourself against these risks is to take out Civil Liability Insurance for SMEs and self-employed workers that covers compensation for damage caused by a company or a professional, provided that it is in the course of their work.

Civil Liability Insurance for Directors and Officers (D&O)

SME directors and senior managers assume risks that are inherent to their positions and are not covered by the usual insurance policies. For these situations, there is a specific type of insurance: D&O insurance.

Directors & Officers (D&O) insurance is strongly recommended to cover any potential financial damage or damage that the company’s senior officers may cause with their decisions.

The policies are usually quite exclusive, with conditions that take the characteristics of each post and its associated risks into account. Generally speaking, this type of insurance basically covers defence costs: (legal costs, compensation, surety, etc.), their main value being that they protect the personal assets of the insured parties, allowing them to perform their functions without being afraid that an error could compromise their financial well-being and that of their families.

It is, therefore, complementary to traditional Civil Liability Insurance, as it protects the director or manager and not the company as a corporate entity.

At RibéSalat we are specialists in designing customised insurance programmes for SMEs and self-employed workers. To do this, we analyse and examine the different risks that can affect a company, using the most advanced technologies for risk management, prediction and monitoring. In this way, we can offer you the most suitable insurance for your company or activity as a self-employed professional, ensuring you are fully protected without making you pay for cover that you do not need.

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