Lots of expats relocating to Vietnam come to try their luck at running their own restaurant or coffee shop. The economy is thriving but competition is fierce so it’s important to have a watertight business plan to give a business the best chance of success and insure your business against risk.
There are many administrative processes which need to be adhered to before such an establishment can open its doors including obtaining a government permit, ensuring that food safety regulations are complied with and protecting the brand with a trademark.
Given the amount of time and money that needs to be invested before the first clients come through the doors it is essential for business owners to take out comprehensive insurance to protect against all eventualities once they are up and running.
Here are some of the different types of insurance that businesses need to think about to protect against risk and keep their business afloat in the face of the myriad number of things that can go wrong. Some are compulsory while others are optional but the more comprehensive the cover a business owner can have, the better.
1. General liability – this type of policy will cover business owners if a customer is injured or harmed on the business premises. It’s a must-have.
2. Theft – there is always a risk that contents, stock and money could be stolen from the premises. It’s important to have cover to protect against this.
3. Property contents – protecting premises against incidents such as fire, storm or flood is essential. Imagine the cost if the premises were to burn down? A café could be put out of business in minutes without insurance covering the contents.
4. Business interruption – while business owners can control certain aspects of their business, other elements, such as those listed in point three above, are beyond their control. Insurance to cover operating expenses, such as rent, bills etc, while a business is unable to operate following a disaster such as a fire can make all the difference to a business’s survival.
5. Vehicle – any vehicle used by the business to transport stock or finished products needs to be insured. This is a legal requirement and failure to be able to produce proof could result in a fine. It is particularly important given the high rate of motor accidents in the country.
6. Income protection – small business owners would be wise to insure themselves against loss of income in case they fall ill or are injured and unable to work. Without the back up of state cover, finances can turn desperate very quickly if an entrepreneur finds themselves unable to work putting both their source of income and their sizeable investment at risk.
If you’re opening a business in Vietnam and would like to talk through your insurance requirements with an expert in the field, look no further. Our consultants have a wealth of knowledge and access to all the best insurers so they can find you the best cover for your business at the most competitive prices. Contact us now at vietnam@infinitysolutions.com.
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