Insurance is important because both human life and business environment
are characterized by risk and uncertainty. Insurance plays a key role in
mitigation of risks.
Having the correct business,
insurance gives peace of mind that in the event of an unforeseen
catastrophic event ,the future of the company and therefore the income of
the owners and the employees are protected. Companies are built up over
years and sometimes generations and all this can be wiped out in one
fell swoop.
Why Should You Have Business Insurance?
It's important to have
business insurance because the financial consequences of a potential
mishap could easily wipe out the assets of a small business. Insurance
provides protection in case customers or passersby experience harm at
the hands of your company, or if your company is harmed by an incident
such as a fire. In addition to protecting yourself, it's also important
to have business insurance so you can protect others. If you own a food
business and a customer becomes ill after eating one of your products or
if you own a delivery business and one of your vehicles hits a
pedestrian, you need to be able to pay for the damage you've caused.
It's also important to have business insurance because such insurance
can be a requirement for certain types of business activities. Some
contracts require in their terms that you be insured, and some types of
insurance, such as workman's compensation, are required for all
businesses in most states.
Kinds of Business Insurance
Business liability insurance pays
the parties that are harmed by your business activities. Although
customers are most likely to experience harm if your products
malfunction, you need to know that innocent bystanders can also be
affected. For example, if your business is using a propane tank, and it
suddenly explodes. Fire and hazard insurance for businesses protect your
company's assets in case of damaging and unpredictable circumstances.
Some types of business insurance are required by your state government,
such as workman's compensation insurance, which protects your workers if
they're hurt on the job, and unemployment insurance, which helps
workers make ends meet if they are laid off.
How to Find Business Insurance
You can find business
insurance by searching online, but it's a better idea to talk to people
in your industry and ask for recommendations, especially if you work in
an industry such as construction or food, where insurance is extremely
important. Rates can vary, and if you find a broker who specializes in
your specific field, you're more likely to get appropriate coverage at
an advantageous rate.
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