Introduction Business insurance is essential irrespective of the type or level of business because it cautions against losses and liabilities. Most business people shy away from insurance, citing it as an extra cost. While this could be true, there is also a whole lot of benefits that come with insurance. Business do not take up insurance policies because of the assertions that it is a game of chance. The insured risk can fail to occur hence implying a loss to the business. But that is not the case because on the other hand if it occurs the cost of recovering is way higher than that of paying the insurance premium.
These are occurrences that come up as a result of acts of God. Examples include floods, hurricanes, earth quacks among others. Due to their unforeseen nature, business should be guarded against the losses that can result from such unfortunate events.
Fires can occur anywhere any time with very unpredictable triggers such as electric faults or combustible liquid leakages. It is important to have in place measures to protect the entire business against losses resulting from fires. Businesses that are insured against fires bounce back faster because they get compensation for the assets destroyed.
Employee and third party liabilities Business premises just like any other environments have hazards which might cause harm to either the employees or third parties such as clients. In such cases, the business is expected to incur the cost of compensating the victim be it paying their hospital bills or paying for damages caused. This is costly, but the cost can be averted by having in place insurance policies that cover such occurrences.
The welfare of employees is an important factor to the success of any business and their health fitness is a priority. It is cheaper for the company to provide health cover to its employees as opposed to settling their bills once they go to hospital. Research has shown that companies providing health cover to its employees and their families’ experiences low rate of employee turnover. This ensures stability and saves the business from hiring and training costs.
This is a common risk factor and it can be perpetrated either by outsiders or people within the organization. In both cases, it is possible to recover the value of the stolen items from insurance companies if the correct policy had been subscribed to. While most people prefer to thieves proof their premises by putting in place burglar proof doors and locks, theft can also be done through other technical ways such as hacking the systems or even organized by employees within the organization. This therefore emphasizes the importance of insurance policy covering theft so that the business can be compensated once this has happened.
A comprehensive business insurance policy should be included in any business at start up to mitigate against such risks which can occur at one time or another. It is important for the business to have an ni card which is the identity used when making claims.