As a new business owner, you may have heard about business insurance here in the Philippines and got advice to get one, too. But does insuring your business matter and how important is it?
Business insurance in a nutshell
Business insurance, sometimes called commercial insurance, refers to a wide range of insurance coverage designed specifically for businesses. It aims to protect a business owner against a variety of mishaps that can cause substantial financial losses.
Importance of insuring your business
Your business may be doing great now, but you can never be sure what can happen in the future. It is not unheard of for businesses to close down due to natural disasters like fire and flood. Theft is also a common problem among business owners.
Insurance can protect your business from this, so even if you suffer from such disasters, you can still pick yourself up and start over. There is also that possibility of lawsuits due to unforeseen accidents that may happen on the business property or caused by your product that can cause a lot of money.
No insurance means no protection
In the absence of business insurance, paying such claims with their assets will be mandatory if found to be personally liable for the injuries or damages. These are just some of the reasons why getting a business insurance is so important.
Common business insurance coverage types
There are many types of business insurance, but one of the most common is key person insurance where you identify and insure a business key person. This key person is so important to the firm that should anything happen that prevents him or her from working, they will pay benefits to the company.
General liability insurance and product liability insurance are also other common types of business insurance where you protect the business against liability claims due to negligence, bodily injury, property damage, manufacturing or personal errors, and injuries due to faulty products.
Do make sure that you have the right type of business insurance before proceeding. Carefully inspect your policy to ensure that your business has the correct coverage.