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Having an insurance cover for your business does not make it completely risk-proof; however, it can certainly scale down the severity of financial losses that you would otherwise incur without it.

No business can completely evade risks. Actual and perceived risks are ever-present to threaten a business’ continuity. If it were not for insurance, these risks would result in massive financial losses, hamper business goals, retard organizational growth, and in some extreme cases, even result in complete shutdowns.

The need for insurance has never been more acutely felt than in the pandemic. Small businesses and startups survived on shoestring budgets and the need for protecting their business was felt like never before!!Why insure?

Buffers Against Unexpected Events

Uncertainty in business can arise from a global recession, major technological and social disruptions, forced lockdowns, or situations where business continuation is threatened. While these events cannot be protected against, there is another big reason for business continuity being threatened — large accidents or an act of god peril like earthquakes or floods, where business operations are automatically thrown out of gear. Insurance provides umbrella protection to the business during dark times and sustains it. If not for an insurance cover, the stakeholders can get negatively affected indefinitely.

All businesses are adversely hit, and untold suffering befalls business heads, particularly owners of the micro ones, in the event of natural disasters like floods, cyclones, fire, and earthquakes. Man-made disasters like thefts, burglary, and vandalism also cause damage beyond repair to business assets and properties. Small businesses do not have the financial resilience to tolerate such mass-scale destruction of physical and intellectual property in the absence of comprehensive insurance coverage.

Increases Employee Security and Boosts Expansion

You have a happy set of workers when they know that your company is insured against sudden downturns. Employees cannot be secure when they are worried about job sustainability and doubt their retention during a slump period. Security boosts morale, which promotes productivity. You earn their respect when you insure their future with your company. More eligible candidates will be willing to join the workforce, which will grow your business further.

Protects your employees and your pockets

Accidents inevitably happen in the workplace, irrespective of the preventive measures you take to avoid them. As the business owner, you will need to take responsibility for any untoward incident that may happen on your premises. You are liable for your employees’ protection and safety. In the event of injuries, or even deaths, your insurance takes care of huge financial claims and settlements. Imagine the brunt of such unexpected expenses if you had to foot them yourself without insurance.

Protects your back when things go wrong

Suppose you have set up a business to provide professional services to the public. In that case, professional liability insurance will protect you against any financial loss arising from damages resulting from your professional negligence.

An added Bonus

Focus on insurance automatically sensitizes you and your organization to risk and helps you to look at risk management as an important aspect of your work culture leading to better safety and fewer accidents, which leads to less disruptions and helps in business continuity.

Whether yours is a small business or startup or you run a large enterprise, you must keep yourself and your business as risk-proof as possible so that in the event of misfortune, you don’t end up spending a bomb from your pocket to compensate for any damages.