Building a successful business comes with a lot of risks, such as liability, fire, burglary and business interruption, and business owners need more than a great idea and grit to keep their businesses profitable and running each year. They need the right business insurance plan to protect their company against risks, losses, lawsuits and damages.So, what are the benefits of business insurance?
Risk sharing which helps minimize financial losses.
When running a business, risk is the main cause of uncertainty. Companies tend to focus more on identifying risks and managing them before they affect the business. When risks manifest, your business may not be in the same financial position. Having business insurance shares your risks with the insurance company: liability insurance cover shares the legal responsibility arising from claims that your business caused bodily injury or property damage during operation with the insurance company.
Makes you look credible and trustworthy.
Having business insurance shows your prospects, customers and partners that you are a safe bet. It gives them confidence to trade with you because they know if anything goes wrong, you have a way of compensating them. It also builds trust, which is a currency in today’s economy.
Conforms your business to legal requirements
The law requires businesses to provide employees with Workmen’s Compensation Insurance which protects employees against accidental bodily injury, disablement, death or occupational illness while on duty. In Kenya, businesses or organizations are required to have Workers Injury Benefits Act (WIBA) insurance to cover themselves against compensation towards injuries caused to their employees. Failure to have this coverage could result in fines, civil or criminal penalties and exclusion from public contracts, all of which could cost you far more than the price of an insurance policy.
Keeps Your Business Up and Running
Unforeseen events may lead to the end of your business if not properly managed. Natural disasters like earthquakes, or floods are hard to recover from. A property and casualty insurance cover will protect your buildings and equipment, and liability if you’re found legally responsible for an accident that caused injuries to another person or damaged another person’s belongings. Also, business interruption insurance will offer financial compensation for losses incurred during the period your business was closed. This will enable you to pay your employees.
Helps Attract and Retain the Best Talents
Good employees are one of the most important assets of any business. Purchasing the right insurance policies to protect employees benefits the employees and the business. People prefer to work with companies that have their interests, safety, and future protected.
Protects Businesses Against the Damaging Effects of Lawsuits and Claims
In the event of a lawsuit or liability claim, without insurance, your business could fold as you would bear these costs from your own pockets. One accident. One broken contract. One unsatisfied employee, and you find yourself in a lawsuit. Rather than worrying about what could happen, liability insurance can give you peace of mind and cover for the damages incurred.
With the perfect business insurance offering coverage for these potential risks, business owners are able achieve peace of mind and focus their attention on operating a productive, profitable and personally rewarding business for years to come.
