~ Survey finds economy’s backbone on shaky ground ~

Most small businesses in St. Maarten are not well covered or not covered at all against their most important risk exposures. Consequently, the backbone of St. Maarten’s economy stands on very shaky ground.

That was the stunning conclusion of a survey conducted recently by Janelle James, a student at the International Business School “Hanzehoogeschool” in Groningen, the Netherlands.

The survey also identified crime-related risks as being among the biggest risks endangering the existence of St. Maarten’s small businesses.

James conducted the survey on behalf of Henderson Insurances, as a graduation project. She focussed on risk exposures faced by small business owners, satisfaction levels and issues of interest pertaining to the insurance market.

The survey also highlighted the strong demand for guidance from insurance brokers when choosing the insurance package best suited to their needs. More than 80 per cent of the businesses buy insurance through independent brokers, as they are not only best equipped to select the right insurance company for the right coverage, but up to date with the many market changes that may have a negative effect on the coverage or price.

The survey further showed that there was a need for specific insurance packages that would result in helping small businesses if they were ever faced with a loss resulting from death of the owner, disability, property damage, loss or damage of stock, theft, robbery, or accidents that could result in the small business owner having to compensate a third party.

However, in line with the increasing threat of crime on the islands, theft and robbery (83 per cent) ranked by far as the highest risk exposure for small business owners. Despite this risk, a majority is not insured against these risk exposures for reasons ranging from lack of finance to simply not knowing that the risk is insurable.

A total of 45 per cent of business owners interviewed indicated they had no insurance at all against the risks to which they were exposed, while another 28.3 per cent was insured against only some of the risks.

Twenty-two per cent indicated they could not afford business insurance, while 15 per cent were not interested in having business insurance.

The business owners’ satisfaction in the level of service they received from their insurance providers was very low. Only 6.2 per cent was very satisfied about the service rendered, while a majority, 62.5 per cent, had no opinion; they were neither satisfied nor dissatisfied.

Making being insured more attractive to business owners could be possible if a special business insurance package were offered to them that included reduced premiums, advice on policy conditions and selection of insurance packages from reputable insurance companies with flexible options that matched their specific needs.

A total of 85 per cent of business owners interviewed said they would be interested in having special insurance packages.

Henderson Insurances owner and managing director Neil Henderson expressed willingness to sit with the Chamber of Commerce, Small Business Development Foundation and other stakeholders to create solutions. He is of the opinion that the small business sector is one of the island’s strongest economic pillars and all efforts should be made in an effort to improve its survival chances.

Source: http://www.thedailyherald.com/news/daily/k204/insure204.html