There are many things a business needs to be successful and finding a right mix of all those things is the secret that many owners are looking to find. A few of the aspects that need attention are good management, a talented workforce and quality marketing but sometimes business owners forget one of the most important, business insurance. Without insurance, a company could be putting all their progress at risk. Take a look at some of the reasons you should consider getting different types of coverage for your business right away.
Insurance policies that are purchased specifically to protect a business and its assets are known as commercial insurance. Usually, policies are purchased with multiple different kinds of coverage. For example, the policy could protect against loss from theft as well as workplace injury. This is different than the insurance purchased by individuals that usually only provides one kind of coverage such as with car insurance and health insurance policies.
Catastrophic Loss Coverage
One type of coverage that is often purchased by large businesses is protection against catastrophic loss. A catastrophic loss occurs when a very significant event occurs that puts a party in extreme financial turmoil. For example, a tornado could destroy a retail store. A flood could come through and destroy all the products in a warehouse. Without the coverage, a business may risk going under after such an event.
Litigation coverage is something else most large businesses should invest in. Litigation is extremely prevalent in our society. If an employee or customer feels they were wronged by a company, there is a high likelihood that they will sue. Some lawsuits may be justified, and others may not be. However, there is always the possibility of losing millions in a lawsuit, and that can certainly put a company’s balance sheets in turmoil.
Benefits Compared to Other Kinds of Insurance
One argument may be made that commercial insurance is unnecessary because other kinds of insurance can be used to protect the business. This argument does not take into account the complexities of running a business.
For example, property insurance may protect a building against acts of nature or fires. It may pay for repairs or a new building. However, there are certain things that kind of insurance will not pay for. It will not pay for the loss of income that business incurred due to the inability to create or sell its products while the building was damaged. This kind of loss can be in the millions and even more significant than the loss of the building itself.
There are many reasons a business should invest in commercial insurance. Make sure that you are smart with your money and help protect your business with insurance from Underwriters Insurance Brokers (BC) Ltd as this can help any owner rest easy at night. Overall, without the protection of insurance coverage, any one unexpected event could literally put a company out of business.