Business Insurance, what is it and why is it so important? Business Insurance protects your company from legal implications and loss of ownership. With even the most successful businesses crashing in the market we are currently in; at any given moment you may have to shut your doors and bid farewell to your employees. That’s why it’s important to have business insurance, for the risk of the unforeseen.
So what exactly is business insurance?
This is the type of coverage that protects a business from loss due to any event that may happen during the normal course of operating a business. There are many types of business insurance, and depending on the kind of business that you own, the insurance option that you choose should cater to what your business does.
Why does my business need it?
Companies typically get insurance to mitigate the risk of the unforeseen. So unless you can tell the future and predict the unpredictable, having business insurance covers the general liability of; malpractice, legal implications, property insurance, and reimbursement of lost profits or sales.
The most common types include:
- Key Personal Insurance: This is the type of insurance that covers your business in case of losing your Key Person. Who is this? Your key employee, who if lost could cause considerable damage to the company’s financial future.
- General Liability Insurance: Protects your business against liability claims, negligence, manufacturing problems, personnel error, bodily injury, and property damage.
- Product or service liability: Coverage of faulty products, damage, injury or death from use of the product or service given.
If you are considering purchasing business insurance, you should try to get all your business insurance from one insurer. You should also select the type of business insurance you need with a licensed agent that is familiar with the risks associated with the type of company that you own.