Why do we have to protect our business with more protection? Take a peek at the following 5 benefits of insurance in business as the best protection from risk!
If so far we have often heard about life and health insurance products, what about insurance in business? Yes, this insurance product is intended for business owners who want to protect their business from various risks.
Just like ourselves, a business also has risks that must be protected. It’s like there are unexpected events that occur in the process. Well, business insurance has a role to minimize losses that may arise from these risks. Then, why do businesses also need insurance?
Before discussing further, what is meant by business insurance?
Definition of Business Insurance
Business insurance is a protection product specifically designed to protect your business. This protection product has various real insurance roles and benefits in the business being run, such as risk transfer, fundraising, and balanced premiums.
Business insurance is part of the various types of insurance that exist. This is because general insurance itself is a form of risk coverage that provides compensation due to loss, damage, costs incurred, loss of profits, or legal responsibility to third parties that may be suffered by the insured or policyholder due to the occurrence of an unwanted event.
After knowing the meaning and difference between business and general insurance, let’s find out the purpose through the benefits of business insurance in more detail!
Benefits of Business Insurance
Why is insurance important in business? What are the benefits of this insurance?
If you experience a loss, business insurance can replace it
Every business must have its own problems and risks. Whether it’s big or small, like it or not, you have to be prepared to bear the impact of the problem. That’s why you should have an anticipatory measure in the form of insurance so that the losses you receive don’t have too much of an impact on your business.
Well, insurance in business can be useful as an anticipatory strategy so that your business can survive in the midst of the problems you are facing. That way, your business will be better protected from the risk of bankruptcy. Later, it is the insurance company that will bear the losses suffered by your business.
In other words, if you have insurance, you can secure your finances, both your business and personal financial conditions.
Provide protection for assets against risks that may occur
For those of you who run a business, for example a business in the property or transportation sector, there’s nothing wrong with considering having business insurance that can protect your company’s assets. One of the advantages of insurance for business insurance owners is that unexpected events that may arise, such as the risk of theft of assets, fire, natural disasters, and accidents, can be avoided.
That way, you can run your business more calmly without worrying that something will happen that could threaten business operations. You also no longer need to worry about business losses if problems occur in the future.
Make you a bolder entrepreneur
The more the business you manage grows, the greater the risks you have to face. When you want to make your business bigger, the fear of this risk often makes your steps backwards. Especially when you want to expand by opening your business branches in various regions and doubts about the results (success or not) will always be overshadowed.
So, fears like this can be minimized if you first protect your business from all possible risks. One of them is by using insurance as protection in business so that you have the courage to move forward. Reducing the fear of failure and you can have the opportunity to continue to grow your business to the fullest.
Your business can have a solid foundation
By setting up protection in the form of insurance for the business you are running, it means you have built a strong foundation for your business. You can anticipate the various risks that may arise from business activities. You can also become an entrepreneur who dares to try new things by innovating to develop a business.
The solid business foundation that you have must be maintained by consistently carrying out risk prevention. You will also feel a positive long-term impact if you already have a strong business foundation.
Have a guarantee of delivery of goods
The online business that is currently growing rapidly has made many business owners switch to doing or strengthening their sales online. Delivery is a determining factor for the success of an online business. If delivery is disrupted, your product cannot reach consumers’ hands on time and will make them disappointed. Your business might be judged to not have a good service system and this will have an impact on decreasing the number of sales.
That’s why, guaranteeing the product can arrive on time in good condition is important if you want your business to remain crowded with buyers. By having insurance in your business, shipping risks can be minimized. This includes getting protection if the product you send is damaged or lost during the shipping process.
Types of Business Insurance
Those were the five benefits of having insurance for the business you are managing. So, like the various types of insurance available in Indonesia, there are also various types of insurance in business. Following are some of them:
This applies to any place of business, whether it’s owned property or rented. Property insurance covers equipment, inventory, signage and furnishings. This type of insurance will protect your place of business in the event of a storm, theft and fire.
However, natural disasters such as floods and earthquakes are often not covered by standard property insurance policies. Especially if the location of your place of business is in an area that is prone to natural disasters.
Public Liability Insurance
If your business produces products for sale in the public market, this insurance is useful for protecting your business from third party claims in connection with accidents or losses to other people.
In fact, a business that really has considered everything, still has the opportunity to be sued because there is damage caused by one of its products. For example, you produce food products and someone gets sick or poisoned after consuming your product. Well, this insurance will provide protection for legal costs.
Workers Compensation Insurance
This type of insurance is useful for protecting your employees which includes medical care, disability, and death benefits that are caused or occur while the employee is working or has something to do with work at your company.
By owning it, insurance benefits for companies such as costs for workers’ compensation can be borne by business insurance.
Business Interruption Insurance
If there is a disaster that is happening, business operations may be disrupted. During this time, maybe you will lose income because of the inability of your staff to work in the office, production activities are also hampered, and sales values automatically decrease.
Do you need insurance for business transactions? Of course, yes! This type of insurance is then useful for compensating for business interruptions that cause loss of income for a certain time.