The unfortunate crash of Virgin’s Galactic space tourism craft, the VSS Enterprise, on October 31 caused terrible loss.
The failure of the ship during a test flight, which resulted in the death of one pilot and the severe injury of another, has resulted in untold damage to the business financially.
However, Virgin founder Richard Branson’s latest enterprise will be buoyed by its insurer, AIG, which will help to mitigate against further tragedies and ensure the project eventually gets off the ground.
Highlighting the importance of finding business insurance, small enterprises can learn a number of things from this lesson:
1. It’s never too late for insurance
Despite the media coverage of the catastrophe, Virgin were sure to find an insurer that could cover them against the worst.
It is believed that insured losses from the crash totaled US$50 million, according to Insurance & Risk Professional. Without a watertight policy, Mr Branson and other stakeholders could have found themselves in financial turmoil.
While the risks may be smaller for your business, their scale makes it just as real. Be sure to find the most complete package that mitigates against your company threats, and secures it against financial loss.
2. Preparing for the very worst is essential
A spokesperson for the space project announced that 3 per cent of the people who bought tickets on board the Virgin Galactic space tourism event have asked for refunds.
Disasters in your company – even a car crash – can cause injuries to your reputation. An insurance broker can help to create an insurance plan that matches risk with coverage, making sure a business can continue through the worst and emerge from the other side.
3. Insuring assets keeps a business going
Virgin are working on their next spacecraft already, with newspapers reporting that it will be in the air as early as next April.
While businesses may not have to wait that long to replace their assets, they also may not have the funds to directly replace damaged or stolen business tools.
Business interruption cover, for instance, can protect a company from lost assets until it can get back on its feet.
If, like Virgin, your company is looking to push innovation, you may find new challenges and risks await. For help managing your business risks, get in touch with MGA and discuss with a professional insurance broker.