Reasons Why You Need Business InsurancePosted by Vishal Singh on November 28th, 2020 All businesses look for profit maximization and risk minimization and an insurance does the latter for you. It reduces your risk of paying for unexpected damages and offers risk management services to safeguard your company or business from threats, perils, tragedies, etc. An Insured Business Can
YOU NEED BUSINESS INSURANCE TO 1- TO MANAGE RISK AND SAFEGUARD FROM NATURAL HAZARDS Your business needs a cover against all the potential damage and losses to your business properties or assets through thefts, income loss, accidents or natural disasters like flood, fires. lightning, etc. 2- TO ADHERE TO THE LAW Most businesses require an insurance as a mandate which thereby protects you from the financial loss if your company is sued or damaged by fire or your data is stolen. 3- YOUR EMPLOYEES ARE PROTECTED WITH INSURANCE Advantages like medical care, missed wages, funeral benefits etc are provided to the company’s employees. The risk of an employee suffering from work related injuries or illnesses is covered. 4- It ensures lawsuit and settlement coverage Liability insurance covers the investigation and attorney expenses if a lawsuit is filed. It protects your business and promotes its continuity and management. 5- You share only risk, no profit. Sharing your risk with insurance helps you in releasing extra burden. You can easily focus on making profit than simply trying to put all your energy in risk management. 6- It secures you with copyright If your business module/ product is unique, you’re protected against all the liabilities that occur if any party breaks the regulations. This liability will defend the legal obligations towards the claims. 7- The credibility you gain by being insured helps you gain new and retain old clients. Taking an insurance communicates your priority to manage risk and ensure protection at any cost. It will also add as a bonus if you’re seeking more outside investment ; an investor will choose an insured company over a company that has no risk security action call. 8- It’s easier to retain your employees Employees need more than just salaries, any additional benefits like an insurance not just builds trust but empowers their decision to choose your company. Your employees are your company’s biggest assets and insuring them is a wise decision. 9 - It is a pre-requisite in most business contracts Renting the buildings, leasing or borrowing money may require contracts that are backed by insurance. Loan agreements too require signed insurance. 10- It’s not one size fits all Your insurance polices advance your risk management based on the size, number of employees, product, service style and so much more. All your investment is customized to what you really need to safeguard your business interests. 11- Insurance offers BOP ( Business Opportunity Plans ) These specially customized plans don’t just offer basic property coverage for computers and other office equipment but in most cases also offer business interruption coverage that maintains income stream for up to a year if a business is disrupted 12 - It protects you from liability The future is unseen and a single accident can put you in jeopardy of paying for someone / something that was not even in your control. That’s where Insurances help you in the damage control. Opting for a business insurance can mean the difference between having a successful business and losing it all in a moment. That’s why businesses need an insurance. Like it? Share it!More by this author |