Business insurance is a useful crises management tool.Without insurance cover, all business, economic and social activity of world will come to a grinding halt. Key trade and commercial contracts would be abandoned. There will be an utter chaos. This shows that insurance is a synonym of human and business progress, prosperity and stable productivity.
Business insurance cover will give strong support in running the business by minimizing the market risks and improving the profitability potential. A business faces many risks, which provide a valid reason for insuring the whole business entity.
Business being the open system directly is influenced by uncontrollable and volatile market situation. What we plan to achieve until year-end is subject to many uncertainties and problems that may be out of a business management control. This fact-required effort to make a decision those risks have to be insured against as well as which could be covered by own business. The particular desires of your business would be a key factors and stage of insurance you make a decision to take out. For an ideal and most relevant insurance plan, a financial advisor should be asked to analyst business external and internal risks and choose for appropriate business insurance policy.
There are various key factors, which are sensitive to risks, and there are various insurance remedies against these factors:
Building and contents insurance –Natural hazard, fire and war, these risks affect business premises badly. Building and content insurance should cover your business’s buildings and contents as well as stock against loss as of accidents.
Public liability insurance – This is a kind of indemnity insurance public liability insurance should cover you and your business against the financial risk of being found legally responsible to 3rd party. This liability may occur because of injury or death, damage or loss of assets or economic loss resultant from business’s or negligence.
Key person insurance cover – Employees are key resource of business that performs all core and non core operations of business. In the era of machines and technology, important of competent and expert staff members cannot be undermined. This type of insurance would support to cover loss of key member of workers.
Worker’s compensation insurance – Employers have social and welfare responsibility towards employees’ necessary to sustain correct accident and illness insurance for the all workforce as well as certain service providers to engage in business.
Personal accident and illness insurance – As well as insuring others, business man need to secure himself against certain health and injury risks by providing cover for his own survival.
Motor vehicle insurance – Business vehicles are those assets which consume a capital cost and subject to many risks of traffic collisions.If not properly insured, it would render a business at losses.
Burglary cover –Every person and business is subject to Theft and fraud. Business assets and people should be sheltered against burglary by suck kind of insurance.
Professional indemnity insurance – if business engage to provide professional instruction. This insurance indemnifies the professional against risk of mistake that effect the client`s interest. Auditor, doctors and lawyers business go for this insurance at most.
Fidelity Guarantee (loyalty) – This insurance provide cover against employee`s embezzlement and theft. It provides a financial cushion to business to guard against these risks.
Machinery breakdown insurance – Failure or break down of machinery result in loss of productivity and sales. Machine insurance provides a cover to allow for repair expense and make the machine working.
Product liability insurance – This protect the god in transit product from loss of damage.It provides repair and restoring the damaged products which are going to be delivered.