Important Of Business Insurance And the Role It Plays

Nowadays is very hard to convince people the vital role insurance play in their day to day life more especially in the area of business since everything we do can be tag as business in one way or the other. But that not withstanding there are still those who understand this role very well and are always ready to stand by it. Well
today am going to be listing important role insurance play, so if you are a business man or woman i will simply advise that you take whatever you are going to be reading here serious and let had i know never be your portion.

Like i stated above many business owners feel business insurance is an expense they cannot afford, or is a luxury for more established businesses. Although it is true business insurance can be expensive, it is an expense every business, regardless of the industry, size or length of time in existence, needs to include in its budget.

Liability
Though somehow this very one is not applicable in Nigeria here but the fact remains If a customer slips and falls while on your business premises or your product has a defect that injures a customer and you do not have insurance, this could spell the end of your business. Yes you may not agree but that is true. Or let say your company car is involved in an accident and someone is injured, that could be disastrous as well. Business liability insurance covers accidents that occur on the business premises, product defects and mishaps that occur during normal business operations on and off premises. Which i believe you will agree with me happens always.

Personal Injury or Illness
Over the year i have always maintain that Business owners aught to have personal insurance as well. Medical insurance will ensure medical bills incurred due to an illness or injury will not wipe out a business's assets.

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Theft
A very common issue here that don need much talk. Is very understandable that new business is a big target for thieves. New computers, furniture and other office equipment is worth more at a pawn or chop shop than older equipment. Even older businesses that have just undergone renovations and upgrades are a target. Replacement insurance protects a business in the event equipment is stolen, replacing the missing items and paying for repairs from damage caused by the invasion. This very act alone have over the years rendered some business useless. I will encourage you act fast.

Litigation
Here i believe you will agree with me that we live in a litigious society. Businesses are sued by individuals and other businesses for a variety of reasons, legitimate and otherwise. Even the most frivolous lawsuit can be costly to defend; and in the event a business ends up on the losing end of a lawsuit, the awarded damages could exceed the business's capabilities to pay. Depending on the business entity structure, not only the business assets, but also the owner's personal assets could be at risk. Business liability insurance, malpractice insurance or professional liability insurance will cover at least part, if not all, of any damages.Don't wait until you fall victim but you get one.

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Level of Coverage
The important true here you must always bear in mind is how much insurance to carry will depend on your industry, the business structure and the amount of assets your business has. The location of the business within such as coastal or rural, and whether the building is leased or owned will also be a factor. For example, a law firm partnership that owns the building in which it is housed might need more insurance than a jewelry designer operating out of her home. With this in mind i believe you have less to worry.

Catastrophic Loss
Indeed business insurance protects a business from closing due to a catastrophic loss. Like Fires, floods, hurricanes and tornadoes have been the end of many businesses in in the world. When a company carries insurance against these types of losses, believe me closure and loss are only temporary instead of permanent. My simple advise here is companies shoule always consider business interruption insurance, a rider on their business insurance policy, to ensure continued cash flow for the duration of a closure due to a natural disaster.

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