Don’t be afraid to take a big step. You can’t cross a chasm in two small jumps. Although, Different types of business require different policies to protect assets and legal liabilities.
Life is inherently risky. There is only one big risk you should avoid at all costs, and that is the risk of doing nothing. No body can predict when mishap could easily wipe out your assets . To avoid this danger, Business owners should get insurance policy that will provide coverage of equipment and machinery, Staff, finance which could hamper operation when uncertainty occur.
Read: Why borrow loans against Life insurance policy
This article outline six reasons why you need business insurance and different types of business insurance that help you secure against peril.
1. prepared for the future
One of the reasons why business insurance is essential is that it gives you the power and resources to safeguard your business against any potential unforeseen event. You can continue running your business in security, knowing that your company is safe from financial harm.
2. Law requirement
Most country law requires businesses with employees to provide particular types of insurance such as workers’ compensation, unemployment and disability, depending on where the business is located.
Read: Six different types of car insurance Coverage to protect against losses
3. It can help you get back to work after natural disasters
This kind of business insurance policies cover risks not caused by human hands but natural disasters. Floods, tornados, hurricanes and fires .
4. Business insurance is 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.
5. Protects Your Employees
Business insurance policies come with various riders for workplace injuries, equipment failures and worker’s compensation, to name a few. These policies can help you pay injured employees and families of deceased staff compensation for on-site injuries.
Also read: Common Life Insurance Policy Terms, definition and Types
6. Protect loss of income
life and disability insurance coverage provide payments to cover the loss of income you generate. In the event of your death or disability, it provides funds for the purchase of your interest under a buy-sell agreement.
You can also read: List of Banks in Nigeria that offer easy-to-get Auto loans
Type of Business insurance.
There are different type of business insurance ranging from Compulsory business insurance such as Workers’ compensation and Third Party insurance covers also Common business insurance on assets and revenue, liabilities, and personnel.
