The super-typhoons in the last quarter of 2009 caused great devastation to the country, particularly to entrepreneurs who saw years of hard work wiped out in a matter of hours during the floods. [Read about the World Bank loan for the Ondoy reconstruction efforts of the Philippines here]

Getting insurance plans is often overlooked by many entrepreneurs who would rather use their resources to start up and operate the business. These are the entrepreneurs who tread a fine line between spending for costs and maximizing available assets.  [Learn more about trust fund investing here]

When disasters like floods and fire occur, such a delicately balanced business could wipe out the entrepreneur’s investments. This is where insurance comes in, says Irene Quillino of Pioneer Insurance. [Learn ways to help your employees after a disaster here]

“Insurance helps entrepreneurs manage their risks so that they can restore their businesses to where they were before the occurrence of a loss,” says Quillino. [Learn more about disaster preparedness here]

“While each person has his own level of comfort in facing risks, operating a business in a country like the Philippines means facing no less than 20 typhoons a year, sometimes earthquakes and on rare occasions, volcanic eruptions.”

Thus, Quillino stresses that from an insurance point of view, coverage for “acts of God…makes good sense and is an essential part of managing ones business.”

A lot of businesses suffered significant losses from the year-end typhoons because their insurance plans did not cover acts of God – natural phenomena like floods, typhoons, hurricanes, volcanic eruptions, and earthquakes. [Find out if your business is prepared for an emergency here]

Sometimes, business owners choose not to procure insurance covering acts of God because they entail a higher premium.
 
To choose the right insurance policy, entrepreneurs must understand the risks their businesses face, says Quillino.

Some insurers have risk engineers who can assist business owners and determine their risk exposure. A word of caution though: Quillino stresses it is important to do business with an insurance company that has a reputation for settling claims in a fair and timely manner.

Page 2: Insurance coverage

According to Quillino, there are five types of insurance that all entrepreneurs need for their business. These are:

 1. Property Insurance with provisions for Acts of God and machine breakdown

This protects the facilities used by the business, such as shops and factories. It also provides protection against most risks to property, such as fire, theft, some weather damage and machinery breakdown. [See tips against theft here]

2. Business Interruption Cover
 
This covers cases of temporarily moving one’s business location. This is particularly useful during disasters, when operations are disrupted, forcing the evacuation of a business. [Learn how to avoid financial disasters here]
 
3. Liability Insurance

This offers specific protection against third party claims – payment is not made to the insured, but to someone suffering loss and who is not a party to the insurance contract. In general, damage caused intentionally and contractual liability is not covered by liability insurance policies.

4. Personal Accident Insurance for the Workforce

This provides coverage for accidental injuries to employees, and is particularly helpful for companies with delivery personnel. This typically covers costs of hospitalization and medicine. [Learn more about employees' separation pay here]

5. Marine Cargo Insurance

This offers protection for the products of manufacturers and traders who ship and transport them to different locations.

It covers the loss or damage of ships, cargo, terminals, and any transport or property by which the cargo is transferred, acquired, or held between the points of origin and final destination. [Read about the chiller replacement project for businesses here]

Pioneer Insurance

(02) 812-7777

108 Paseo de Roxas

Legaspi Village

Makati City