With the challenges of the global economy ever increasing, entrepreneurs have to focus more of their attention on managing and growing their business, but the risks are real. It is part of our job to identify the potential risks that could affect companies’ financial performance and ensure that they are adequately protected. Horizonte Seguros has a portfolio of products and services to cover any eventuality.
In an interview with Profile, Diler Da Costa, Branch Manager at Horizonte Seguros, presents the main business insurance options offered by the company, such as Property Insurance, Motor Insurance and Civil Liability Insurance, which are essential for protecting companies’ assets and operations.
Da Costa explains the key criteria for choosing insurance, including risk analysis, necessary coverage, the insurer’s reputation and budget suitability.
Profile Mozambique: What are the main types of business insurance that Horizonte Seguros offers?
Diler Da Costa: In our range of services, we have several essential types of insurance to protect companies. Property insurance, for example, protects the company’s physical assets, such as buildings, machinery and equipment, against damage from fire, theft, vandalism and natural disasters. We also have Motor Insurance, which covers commercial and private vehicles, covering damage to the insured vehicle itself, damage to third parties and theft of the vehicle or its accessories.
Another important insurance is Civil Liability Insurance, which protects the company against possible legal claims for damages caused to third parties. Business Interruption Insurance, on the other hand, compensates for loss of revenue and operating expenses during downtime caused by events covered by the policy.
In addition, Occupational Accident and Illness Insurance covers expenses and compensation in the event of accidents suffered by workers during the course of their duties and illnesses acquired as a result of these activities. Machinery Breakdown Insurance protects against sudden equipment breakdowns that could jeopardize the continuity of operations.
Finally, Goods Transport Insurance protects goods and products during transportation, whether by land, air or sea. These coverages provide a solid basis for guaranteeing the protection of companies’ assets, cash flow and operational continuity.
PM: What are the most important criteria a company should consider when choosing insurance?
DC: The process of choosing business insurance begins with framing the company in relation to four fundamental aspects: size, line of business, location and the risks to which it is exposed.
From this initial analysis, a number of specific stages follow. The first stage is the assessment of specific risks, where the main risks of the sector and the company’s operations are identified, such as fire, theft, accidents, property damage and aspects related to stakeholders. This is followed by an analysis of the coverage required, comparing what is essential for the business. This makes it possible to minimize risks and ensure that the insurance meets the company’s specific conditions, ensuring that all planned operations are adequately covered.
Another important point is the analysis of deductibles and coverage limits, which involves understanding the maximum amounts covered and the company’s financial participation in the event of claims. The insurer’s reputation is also a crucial factor, and it is necessary to assess the good name of insurers in the market based on criteria such as customer service, response to claims, the technical capacity of managers and financial strength.
Finally, there is the price of the insurance, which should be analyzed not only by the amount of the premium, but also by the cost-benefit in relation to the services and coverage offered
PM: What is the process for assessing the company’s assets and ensuring that they are adequately insured?
DC: In this act, we basically consider the Detailed Inventory, where you can list all the assets. This is followed by the Professional Appraisal, which consists of hiring specialists to define the assets.
Periodic Reviews are recommended to update the policy as assets depreciate or new goods are acquired.
The process culminates with the Coverage Adjustment, which aims to keep pace with the increase in value of specific assets or essential machinery. This step ensures that assets are covered at fair value, in order to avoid insufficient protection for exposed risks and excess premium expenses.
PM: Currently, what challenges do you see most commonly faced by companies when choosing business insurance?
DC: Some companies face challenges when choosing insurance, such as not knowing the coverage, which can lead to buying policies that are not aligned with their business or operations. On the one hand, complexity in evaluating policies is also a common problem, as it can be difficult for the company to accurately understand premiums, deductibles and coverage limits.
And on the other hand, limited budgets, especially for new companies, make it difficult to invest in extensive coverage, which leaves the business more exposed to risk. Another critical point is the fear of facing a complicated claims process, marked by bureaucracy to approve and receive compensation. These challenges can be mitigated with the support of a reliable broker and a careful analysis of the company’s specific insurance needs.
PM: How do regulatory changes affect the choice of business insurance in Mozambique?
DC: Regulatory changes may require additional coverage or adjustments to companies’ insurance policies. Laws related to labor liability, cyber security and consumer protection are especially impactful, as they force companies to adapt to the new standards and regularly review their coverage to ensure compliance
Follow Diler Da Costa’s career through his LinkedIN page: Diler Da Costa
BRIEF PROFILE
Mozambican, with a degree in Economics and a Master’s in Business Management from Eduardo Mondlane University, with experience in macroeconomic and financial analysis, reinsurance, special risks (Fire, Engineering, CAR and others), data collection and analysis, use of econometric packages (Stata), management and mitigation of operational and financial risks, market and feasibility studies. Currently working for Horizonte Seguros, S.A., as Branch Manager.
