As a business owner, chances are you've heard the the term 'business insurance' thrown around quite a bit – but what exactly does this kind of coverage mean?
According to the U.S. Small Business Association, business insurance can be defined as something that "protects your investment by minimising financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, or a natural disaster."
Business insurance, in its simplest form, is composed of important layers of protection for your most valuable asset: your company. From asset protection to workers compensation, business insurance can cover a wide range of potential risks.
"Business insurance, in its simplest form, is protection for your most valuable asset.
Do you need business insurance?
So, you understand what business insurance is, but how can you determine whether it is a necessity for your organisation? Chances are, if you answer yes to any of the following questions, business insurance is critical for your company.
1. Do you have substantial investments in property, inventory or equipment?
Nearly every business requires various forms of infrastructure to function. Whether it be machinery for production cycles or simply a new piece of machinery, business owners make hefty investments in tools that are critical for day-to-day processes. Yet there are a number of things that can go wrong with this equipment.
From an unexpected break-in to damage related to an employee mistake, a business insurance policy can help replace or repair the equipment you need to conduct business in a time-conscious manner – ensuring minimal disruptions to your business and cash flow.
2. Are you operating in the modern business environment?
You'd be hard-pressed to find a company that wouldn't answer 'yes' to this question. In such a technologically advanced world, there are a whole list of new risks business owners need to consider.
From cybercrime to the realities of an increasingly global supply chain, the modern business environment highlights the need for protection against a variety of new potential problems. Business insurance makes sure you are ready to deal with risks, new and old.
3. Do you need protection against unforeseen circumstances?
There is ample potential for business disruptions on any given day. The question is: are you equipped with the resources to keep your business going in light of these circumstances? Chances are, without insurance, you would not have the funds to keep things afloat while you deal with damage. Having business insurance as a safeguard in the case of a fire or even an explosion can be the difference between business closure and survival. These policies can help provide funds to refurbish your location and help restore key machinery.
4. Do you want the confidence to conduct business without fear?
Business insurance is more than just protection, it is about securing confidence in your decisions. When you have policies backing you up, you can conduct your regular business functions with peace of mind and even become emboldened to make new strategic decisions.
Insurance is like a safety parachute for you and your company. It allows you to jump off into your next venture, knowing you'll land safe and sound.
Insurance is like a safety parachute for you and your company.
Protection when you need it
While there may be hundreds of reasons why you should insure your business, the most important thing to remember is that business insurance is what safeguards the very company you have invested so much of your time and money into.
No one would leave their most valuable possession unguarded on a crowded street, there is no reason to leave your business vulnerable in a world full of risks.
Here at Transpacific Assurance Limited we pride ourselves on ensuring our customers are protected in the best way possible. To learn more about what we can offer you, contact one of our business insurance representatives today.