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Small and Medium Business Insurance

Hello, dear readers. In this article, we will tell you about business insurance.

Today you will learn:

  1. For what it is necessary to insurance business;
  2. Types of risks in business;
  3. Which company provide risk-free business insurance services and how much does it cost?

What is Business Insurance?

Business insurance is a product through which you can save your capital and continue working without financial loss.

Why insure your business?

This question may arise in those who are just starting their own business, sometimes by trial and error.

If you have created the whole business of your life, have a good client base and create competition to other companies, then you should take care that it does not collapse in a single moment because of unforeseen circumstances.

Of course, many young entrepreneurs are trying to save their own money and do not believe that there can be a fire, an accident, or that someone will fail or someone will "throw" on the money. But you will agree, it is pleasant to work and know that at any moment everything can be restored, at the expense of the received insurance payment.

It can be concluded that insurance for your business is an additional "safety cushion" for your business. The main thing is to evaluate the business and choose the right insurance product.

Therefore, if you are just starting to develop, do not negatively react to proposals from insurance companies. It is better to carefully study the commercial proposals of several insurers and purchase a lucrative contract.

Advantages of business insurance.

Advantages of business insurance are obvious:

Protection against financial losses and bankruptcy. In a market economy, opening a business is a risky business. The customer base will not be accumulated in one day. To reduce the losses that may arise as a result of commercial activities, it is worth buying insurance protection.

Protection of real estate. The room in which you operate may be affected by a fire, explosion or natural disasters. The cost of restoration can be large. It is through insurance that you can repair the property.

Staff insurance. The availability of experienced and qualified personnel is the key to the introduction of a successful business. The protected team feels calmer and loyal to the company's management.

Entrepreneurial risks.

Every business activity involves high risks. The best way to protect yourself against possible losses is to purchase a business insurance agreement.

The main types of risks:

  • External. This type of risk does not depend on the activities of the company. This includes inflation and changing demand in the market.
  • Internal. These are risks that arise solely through the fault of the enterprise itself. Here it is possible to single out a strike or an incorrectly drawn up business plan for the development of one's own business.

By the factor of occurrence,

  • Political, connected and changing the political situation in the country;
  • Economic, arising due to adverse changes in the economy.

Classification of risks in the area of occurrence:

Production risk associated with non-fulfillment of obligations to produce goods or services;

  • Commercial risk arising from the sale of goods and services;
  • Financial risk is related to non-fulfillment of financial obligations;
  • Insurance risk is associated with possible losses that will arise as a result of the occurrence of the insured event.
  • An innovative risk is associated with the emergence of new technologies and the emergence of a new, more sophisticated product on the market.

For the correct choice of insurance protection it is worth taking into account:

  • What risks can be at the enterprise?
  • The probability of occurrence of each risk;
  • Losses that you incur as a result of each risk.

The assessment of future damage is based on the following methods:

  • Analysis of all company activities;
  • Comparison of own forecasts and data obtained from the involved specialists;
  • The use of the experience of other enterprises that work in a similar industry.

Types of business insurance.

Even the most courageous entrepreneurs, who are not the first day in business, do not forget to "make themselves straws." Business insurance is an obligatory process that can not be neglected and postponed for later.

There are several types of risk insurance:

  • Property insurance. In this case, the products, equipment, and premises are subject to insurance;
  • From the production break. For example, you have a fire in the company. You will not be able to quickly restore the workflow. It is necessary to spend time on repair work, purchase of new equipment. Do not forget about the wages of employees, which no one has canceled and all mandatory tax deductions. Insurance will be able to compensate for all the expenses that you incur in such a situation;
  • Insurance of business liability to third parties. Under this agreement, all liabilities to partners will be insured. For example, also in the event of a fire, you will not be able to fulfill the obligations in full. The insurance company compensates all penalties, which will be exposed as a result of the occurrence of the insured event.

Property insurance

Let's say that you opened a business, rented an office or bought your own premises. In addition to the premises, you had to buy the necessary equipment and furniture. If it is a question of big business and production of goods, then the expensive equipment is needed. Here all the acquired property can suffer at any moment.

Under the contract, you can ensure:

  • The building itself and the buildings and buildings attached to it;
  • Material values;
  • Money in the vault or safe;
  • Techniques: computers, telephones, fax machines, printers, scanners, etc .;
  • Interior items.

Insurance against production interruption.

Business can not work around the clock. There can be scheduled days for rest - these are weekends and holidays. But what to do with unplanned work days, which can appear due to force majeure circumstances?

As a result of downtime, you:

  • Losses in the form of lost profits;
  • You will have to spend money on damages, and this is unplanned expenses;
  • Have to pay salaries to their employees, taxes, and rents.

Compensate for all costs will help the insurance company.

Also, it is worth remembering about an additional useful insurance package:

  • Voluntary insurance of employees ;
  • Civil liability to third parties;
  • Vehicle insurance company;
  • Insurance of goods during transportation.

Liability Insurance.

This is an excellent protection, if, due to unforeseen circumstances, you have caused harm to the customer and he has a complaint.

Let's say you decided to open a beauty salon. Your employee, when applying a mask to the client, incorrectly mixed the cosmetic substances and the client appeared redness and burns on the face. Agree, a very unpleasant situation.

If the injured customer makes a claim to the salon, you will have to pay compensation. But you will not be paid, but the insurance company, within the insured amount.

Small Business Insurance.

For a small business, any unforeseen situation can turn into a great tragedy. In most cases, there are no reserve funds for small businesses, and due to working capital, the damage cannot be compensated. In such a situation, insurance protection will help to minimize possible losses.

At the moment, small business insurance includes:

  • Business Liability Insurance;
  • Property insurance;
  • Possible losses in production.

It is also worth knowing that if a novice businessman wants to take a loan from a bank to open a business, the bank will take care of the security of assets that will serve as collateral. In this case, the registration of a business insurance agreement will become a prerequisite.

Medium Business Insurance.

Today, economic conditions cannot be called stable. This applies to the whole world. Every day you can hear about financial crises, which can affect the activities of large companies. But how to survive afloat representatives of medium-sized businesses? This business is in a special risk zone.

Experienced insurance consultants advise to acquire protection against force majeure, such as:

  • Fires;
  • Accidents, including utilities;
  • Change or illness of employees;
  • Official crimes;
  • Equipment failure.

Cost of business insurance services.

Insurance companies offer several business insurance programs. You can make a calculation even on the official website of the insurance company, or by calling the operator on a toll-free customer support phone.

The listed companies have a comprehensive business insurance program that guarantees full protection in the event of an insured event.