Are you Running a Business? Here are 6 Reasons why you Need Business Insurance
- DetailsWritten by PolicyBazaar -
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Updated date : 20 May 2020
Running a business is not rocket science but it isn’t a child’s play either. Businessmen face a myriad of risks on a daily basis. These risks are part and parcel of their job (read business). Thanks to the wave of entrepreneurship in India, new-age entrepreneurs having a business mindset are pursuing their interest in the business. Gone are the days when businessmen used to come from traditional business families. Since most of the young businessmen who want to create an empire start from a shoestring budget, the need for having business insurance for businesses in India is more than ever.
If you run a business in India, you ought to buy a business insurance plan. In this article, we will discuss why you need business insurance.
Before we jump to the need for business insurance, let’s gets the basics clear.
What is Business Insurance?
Basically, business insurance is a wide range of insurance coverage formulated especially for various businesses. Also known as commercial insurance, business insurance caters to businesses. It provides them much-needed protection against financial losses arising due to bodily injury, company-owned property or lawsuits. If a business owner doesn’t opt for business insurance, their business would be unable to carry on with the operation after such a loss.
Why You Need Business Insurance
Here are the 6 Reasons why you need Business Insurance:
Provides Insurance Coverage against Natural Disasters
God forbid, in case of a natural disaster, your business operation will be severely affected. While property insurance provides insurance coverage for damage(s) caused to building, property, equipment etc. that’s about it. If you have business insurance coverage, it will compensate you for the money you couldn’t make while your operations were shut. By providing insurance coverage for the loss of income, it helps the business to get back on its feet after the storm has passed.
You must be wondering on what basis the insurer will compute the loss of income.
Well, it is purely based on assumption, as there is no other way to compute the loss of income. In case of the covered loss, the insurance provider assumes the money your business would have made while it was not operational. Along with that, it covers basic operational cost such as rent. Based on that, it provides insurance coverage.
Ensures that your Business Runs Smoothly
No matter how hard you try, you can’t eradicate the possibility of business interruption and consequential losses. Having said that, you can totally control the impact it can have on your pocket. Yes, you can’t control a business interruption and consequential losses but you can ensure that your business isn’t affected by it (by opting for a business insurance plan).
Future is Uncertain
The best thing about the future is that it is full of possibilities. At the same time, it is full of uncertainty. No fortune teller can tell what future holds for your business. In an ideal world, everything should work out as per the plan. Since we live in the real world and your business operates in the real world, you never know what happens in the future that can make it difficult for you to accomplish your business goals. Having said that, uncertainty should never stop you from accomplishing your business goals. To ensure the safety and security of your business, you ought to opt for business insurance.
It’s Cost Effective
In case you don’t have business insurance, you as well as your business will get affected in case an unfortunate incident happens. The operations will slow down or might come to a standstill, your projects won’t be delivered on time and above all, you’ll have to pay for the losses/damages from your own pocket. The insurance premium charged by such business insurance plans is nominal and the offered benefits make it worth it.
You Deserve Peace of Mind
Having peace of mind is extremely underrated. Just because you are a business owner, it doesn’t mean that you can’t have peace of mind. There is no denying the fact that businesses run on risks. But the risks should be calculative. If a project doesn’t offer promising returns, you won’t take it. Right?
At the same time, for the project that offers promising returns, there is no guarantee that nothing will go wrong. This is where business insurance comes into action. It ensures that if anything goes wrong, it will provide insurance coverage as per the applicable terms and conditions.
With comprehensive business insurance coverage, as a business owner, you will be able to get the much-needed peace of mind that’s hard to find amidst back to back meetings. With the peace of mind, you can focus on much important work such as running a profitable, productive and personally rewarding business.
Provides Insurance Coverage for Bodily Injuries
Human resource is the biggest capital for any business. When your workforce works diligently to meet deadlines so that assignments can be delivered on time, there is a possibility that an employee might get injured. Since the employee is employed by you, the liability will fall upon the owner (that is you). In case the bodily injury is not that severe and the employee can get back to work in a short period of time, good. The incurred medical expenses would be nominal. But God forbid, in case of severe bodily injuries, the incurred medical expenses and the compensation that the employee will be entitled to could cost you a bomb.
Over to you
Being a business owner, running a business in India is not an easy task. Every day you have to face various challenges and you have to another option but to combat the challenge. You can’t afford to fall in the gravity of situations. When you have tough situations to face, having business insurance coverage is a blessing in disguise. Sure it doesn’t undo any damage or loss, but it provides much-needed insurance coverage that helps you to continue your business operations smoothly after the halt.
No matter how hard you try, you can make human mistakes, you can overlook a few things that can pile up and affect your profits. In that case, if you have to pay for the damage repair without having any cash inflow, the financial health of your business is bound to get affected.
That’s why, having business insurance is a must.
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