Insurance of small businesses is not mandatory in most of the country, but it is definitely required. If you have not insured your business yet, you are putting your business in danger. Fear of danger is high for small businesses, where 40% of the people do not get a chance to start their business again if once closed.
On the other hand, insuring your business enables you to face unforeseen problems such as financial losses. Sometimes you will not be able to bear such loss alone. Whether you work from home or from the office, as a small business owner it is very important if you have good business insurance.
Important Reasons why you should have an Insurance for your small business
1) Natural disasters can end your small business at any time.
Your place of business can be destroyed due to natural disasters like fire, flood, earthquake, tsunami.
If you have insured your business, then it helps you to compensate for the loss due to all these natural disasters.
2) You may face heavy losses due to theft or robbery.
Due to theft from your cash counter or locker, you can suffer deep damage. This can cause your business to close almost or even completely.
Under the insurance of a good business, your cash, physical assets such as computers, furniture, etc. are completely safe.
3) Due to negligence in business, you may have to face troubles.
If you fail to provide proper service to your customer, then you may face hatred on the part of the customers, who may also refuse to pay you.
Under some business insurance, you can protect the loss arising out of such negligence.
Business insurance takes care of losses caused by failure and negligence in providing service.
4) Your business may be prosecuted due to the failure of your worker or his death.
It can be very dangerous if one of your workers gets stabbed or dies at the time of work. It is not just about letting the worker get compensation if the family members of the worker can file a lawsuit against you. Due to these reasons, it is mandatory to insure business in many countries, especially abroad.
Insurance companies protect workers’ expenses and expenses due to illness. It also takes care of all the legal expenses that have to be incurred by the workers’ family from filing a lawsuit.
Your workers also consider themselves as mehfus due to insurance.
5) Due to the riots, your place of business may be spoiled.
Businesses located in the city are more likely to get ambushed in the rioting environment in the state. If your business is not insured, then the burden of loss falls completely on you.
Due to good business insurance, you can get your loss well repaired or changed.
6) Due to interference in business, you may face a lot of financial loss.
Many times due to natural calamities or due to riots, your workers do not come to the office, it interferes with business and your income is lost.
In such situations, business insurance helps you to make up for the loss.
7) Due to some disputes, you may have to go to court.
In business, it is quite common to have disputes with your customers, tip-tacks with vendors. Sometimes the dispute can be so big that you may have to seek the help of the court.
Due to insurance, the expenses incurred in the court can be taken care of, otherwise, all the expenses have to be borne by the owner alone.
8) There may be an accident with the vehicle used for commercial purposes.
In India, it is mandatory to have insurance for all vehicles used for commercial purposes.
Due to insurance under the vehicle policy, the vehicle or driver gets protection from unforeseen losses such as accident, fire and all these things.
9) Debtors, customers, or banks you can trust.
Due to the insurance of the business, the customers, debtors, all believe that their money is safe. Insurance increases people’s trust in the company. Later, the company grows due to all these reasons.
Insurance not only helps your company in a critical situations but also makes your company more reliable.
Overall, as the owner of all the losses, expenses of legal proceedings, and everything else due to lack of insurance, you alone have to compensate them.
It depends on how much financial loss you may suffer and that it can prove to be very expensive for you.
The conclusion of all this is that you should have a good insurance policy that protects you from all kinds of losses.