AS the world is evolving at a fast pace and we are being introduced to new developments, we are bound to be faced with many casualties that may result in an unexpected incident, which can affect our daily lives drastically. Whether it is a businessman, homeowner, farmer or merely an individual, it is likely that you will be faced with risks. Such risks may include losses or damage to business properties; destruction of homes due to fires; death of animals due to excessive floods and health care bills. Therefore, for these reasons, an investment should be made in securing one’s greatest assets through insurance. Insurance companies have been around for quite some time, but due to the vast development of an economy and the threat of climate change, the risks are higher.

As many young professionals are beginning their entrepreneurship journeys, they are already consumed with many responsibilities in setting up their businesses, that the thought of protecting their businesses is excluded from the preparation process. This can also be due to their lack of experience.

According to NBS News, there are two reasons why small businesses are uninsured and that is either because they lack the capital, or they have no knowledge of what needs to be insured. One of the most needed insurance in the business industry is the “Business Interruption Insurance,” which covers a company’s losses and operating expenses such as salaries, which should be paid as normal in the event of the business running out of funds, power failures and natural and man-made disasters.

Risk management is a crucial cornerstone for young businesses. Business owners can also benefit from receiving bank loans with ease, as the lending agency recognises the individual as capable and responsible for maintaining a back-up plan and also that insurance can be used as collateral for obtaining a loan which will be used in an event that the loan cannot be repaid on time.

Homeowners and vehicle owners should also be insured. The breadwinner of a household would not want to risk his hard-earned money used to construct and furnish his dream home to be wasted in cases where an unfortunate incident occurs, resulting in the loss of property. This tragedy will also have an impact on family members’ lives for a long time. There is the Guyana Relief Council established to assist persons in such situations; however, there are many persons who are well and capable of insuring their assets and lives from which they will be able to gain far more benefits than what the relief council would provide.

Road accidents are also on the rise due to careless driving or poor vehicle maintenance. The cost of maintaining a vehicle is already high, so if an unfortunate event occurs, that vehicle will be of little value to the user. If the vehicle had completely been written off or if repairs need to be done, that will result in additional expenses for the user and in terms of a business vehicle, the company will also suffer losses.

Health insurance is another major area of interest, as all are bound to have medical checks and in events where serious procedures may need to be done, bring along heavy price tags, especially through private health institutions. Therefore, by being medically insured, you will be able to get back either a percentage or having the medical bills fully covered.
Insurance money may be seen as a hefty expense on a monthly basis, but the returns in cases of unforeseen circumstances are great blessings in times of need.

The insurance industry also has an impact on a country. The insurance sector generates long-term financial resources through premiums, which are invested in the building of long-term infrastructural assets e.g., roads, thereby increasing the GDP of the economy. Insurance companies also generate a lot of taxes which play a crucial role in the financial system in having money available for circulation and state use. They also help to promote foreign exchange, resulting in higher foreign direct investment rates.

The benefits of having insurance are tremendous and with the upcoming developments of Guyana, all should be properly and adequately insured. Risks are bound to happen, but the timing is unknown and therefore we should be prepared to overcome that challenge in whatever form it may be. The insurance industry also has an extended impact on the economy of the country, which aids in further development of Guyana.