Here's Why Your Business Needs Insurance

Guide to Selecting Small Business Insurance

      Businesses need insurance. Why? Because an accident can happen anytime. And when it does, business insurance helps pay for the damage, which you should be out of pocket for.

It's different if you have insurance that protects you. The context of protection in insurance is protection and assurance.

Insurance becomes a risk transfer or minimizes losses that can occur in the future, according to a written policy agreement.

What is Business Insurance?

Business insurance protects the business from losses due to events that may occur during the course of business activities.

There are several types of business insurance including coverage for property damage, employee related risks and legal liability,

Companies evaluate their insurance needs on the basis of potential risk, which can vary depending on the factors in which the company operates. (investopedia.com)

So, insurance can be interpreted as an agreement between the insurance company and the policyholder, which forms the basis for receiving premiums by the insurance company, in return for; providing reimbursement to the insured due to damage, costs incurred, loss of profits or legal liability to third parties who may suffered by the insured, due to the occurrence of an uncertain event.

In addition, insurance also provides payments based on the death or life of the insured, with benefits whose amount has been determined based on the results of managing the funds.

What Insurance does Your Business Need?

To ensure your business is protected, consider the following business insurance coverage:

What insurance does your business need? To ensure you're protected, consider these business insurance coverages:

1. Commercial property insurance

2. Business income insurance

3. General liability insurance

4. Workers' compensation insurance

5. Data breach insurance

Here are the Reasons why You need Insurance for Your Business

1. Business insurance protects your customers.

In addition to insurance your business also helps protect your customers if you have a Business Owner's Policy. This policy combines the scope of business property and business liability into one, to help protect your business from:

- Personal injury and advertising

- Property damage

- product liability

2. Business Insurance Protects Your Employees

One of the business insurance coverage that most states require is workers' compensation insurance.

If your employee suffers from a work-related injury or illness, the insurance provides benefits such as:

- Missed wages

- Medical treatment

- Funeral benefits

It is important to recognize that workers' compensation offers different protection from unemployment insurance programs

3. Business Insurance can Assist in Lawsuits

Any company may be sued and will face legal fees.

One reason you might need business insurance is to help cover those costs. For example, if you had an injured employee sue you, your workers' compensation insurance can help pay for legal fees. And, if the injured worker ends up disabled, workers' compensation can act as disability insurance and provide them with benefits.

4. Business Insurance Protects Against Natural Disasters

Most countries suffer from various natural disasters, such as: fires, floods, storms and tornadoes.

This insurance is important to protect your business assets and the property in them in case of disaster.

You can also learn about flood insurance from several insurers to help protect your business against flood damage.

5. Business Insurance Is Required By State Law

Most states mandate small business insurance. However, even if yours isn't, you still have to consider it. Business insurance benefits can protect you from financial losses. Without them, your business may be at risk if:

- Fire destroys buildings or your inventory.

- Customers sue you after being injured at your business.

- Computers with personal information of your clients are stolen.

6. The Contract May Require Business Insurance

Business is always making contracts. So, it's important to realize that contracts sometimes require insurance coverage. Some examples include:

- Rented a building from the owner

- Borrowing money to pay for goods

- Loan agreement

- Client Agreement

7. Business Insurance Builds Company Credibility

Business insurance goes beyond just protecting your business. Having the right policy shows your customers and contractors that you take risks seriously. It also helps send the message to everyone that you're providing proper protection no matter what the accident may be.