All businesses are exposed to risk. When it is a smaller or a more recent one, the risks are higher and hence the need for risk management.
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Getting your business insured is one of the most valuable risk management or mitigation techniques, one can recommend. An insurance policy guarantees compensation for specified damages or losses to your business.
With so many insurance options available in the market, the trick is to get the right one that suits most of your needs and not to get trapped into spending tons on insurance premiums. Here are some of the types of insurances you may want to consider:-
A wise investment to make, which reduces potential losses on company assets, caused due to natural disasters or thefts. This insurance may also include covering your customers' losses, if you are liable for it. If you buy or rent a property, make sure the property is also insured.
This is to ensure your employees' welfare. You are liable for your employees while they are on job. Hence all job related injuries need to be covered by the insurance you take. In case of such injuries, the employer is expected to provide compensations and benefits or pay their medical bills.
This is a good insurance to take for your employees, in case your business runs out and you are out of money. In some countries, the law may mandate the employer to take this insurance for his employees, which can be claimed if employees fall out of jobs for no fault of theirs.
Business Interruption Insurance:
An insurance type to protect you in cases where your business shuts down or closes temporarily due to damages or disaster. This ensures that your cash flow is uninterrupted in case operations close. Depending on the policy coverage, this can also act as your source of income till you are back into business again.
There are many other types of insurances, apart from these, which cater for more specific events or needs, based on the type of business you are into. Some of these insurances are mandated by the law and hence, need to be taken before you start your business.
Irrespective of the type of insurance you take, make sure you find a trust worthy insurance agent, with whom you can have a healthy long-term relationship- some one who can guide you to take the right insurance at the right time as business progresses.