Leadership Guide

Importance of business insurance for an organization

Several businesses have neglected the need to insure their business, citing reasons like waste of time and money, only to be left shattered and penniless afterwards. Business insurance can be taxing on your concern, especially if you run a small business. But the truth is that it can save you in troubled times, and needs to be included in the company’s budget. And here are some reasons why!

Loss due to catastrophes

Natural calamities like floods, earthquakes etc. strike without warning. And when they do, they mostly leave nothing behind but destruction and chaos. Many a business was forced to shut down after being affected by a catastrophic loss, thanks to the fact that it was not insured. So insuring your business against catastrophic losses would definitely let you live in peace as you can expect a continued cash flow until you open shop again.

Loss due to theft

Thieves are always on the prowl, looking out for new businesses and stores to loot. The case extends to renovated businesses as well which often face the wrath of thieves who often target the equipment in these places. In these cases, getting a replacement insurance can protect your business in case a theft occurs, and would essential pay for the damages and loss of items.

Loss due to liability

A case that is often overlooked by business owners is the possibility of their products causing harm to users, or accidents happening to customers within the company premises. In the absence of a business insurance, and in the case that the customer moves to press charges against the concern, chances are a business would be forced to close forever. A business liability insurance however, would protect businesses from being affected by these kinds of accidents, mishaps and product defects.

Loss due to Personal Illnesses or Injuries

Personal illnesses or injuries can sometimes force business owners to use their company assets to pay off the treatment costs. And considering the fact that medical treatment costs hit the roof in many areas, it is considered wise for business owners to take a personal medical insurance in order to tackle sudden medical situations efficiently without necessarily placing their hands on the company money.

Loss due to litigation

Taking a business liability insurance, professional liability insurance or a malpractice insurance would protect a business from petty lawsuits that could nevertheless take plenty of years to solve, and cost the organization in terms of lawyer fees and settlements. These insurances would reduce the risks faced by a business due to even trivial lawsuits.

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Dr Prem Jagyasi

Dr Prem is an award winning strategic leader, renowned author, publisher and highly acclaimed global speaker. Aside from publishing a bevy of life improvement guides, Dr Prem runs a network of 50 niche websites that attracts millions of readers across the globe. Thus far, Dr Prem has traveled to more than 40 countries, addressed numerous international conferences and offered his expert training and consultancy services to more than 150 international organizations. He also owns and leads a web services and technology business, supervised and managed by his eminent team. Dr Prem further takes great delight in travel photography.

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