One of the most important things you need to have when running a business is business protection insurance. Having insurance cover not only protects the business from possible loss in case of a natural disaster or accident but also boosts the confidence of employees because they know their welfare is well taken care of. A recent statistic revealed that 1 in every 10 small businesses in Singapore doesn’t hold any business insurance at all. Additionally, up to 50% of those that have insurance are only covered by basic insurance. This is risky because if anything bad happens to the business then it may not be able to recover. With a large portion of Singapore businesses being SMEs having business protection insurance not only helps to cushion the business but also helps to stabilize the economy. In this article, we will discuss the benefits of business protection insurance for small businesses.
- It protects the business from damage and liability claims
One of the benefits of having business protection insurance cover is that it helps to protect your business against damage and liability claims. All businesses are exposed to some level of risk, some of which are expected while others are unexpected. For instance, your business property can be damaged by an earthquake or you can be sued by one of your unsatisfied clients. If you don’t have business protection insurance, you will incur a huge financial loss that may take time to recover. In fact, some businesses that don’t have business protection insurance don’t recover when the damage is too big.
- It minimizes financial loss
Business insurance protection helps to minimize financial losses that could derail your business growth. For instance, in case your business is sued by one of your clients, the insurance will cover all legal costs of the lawsuit, thus protecting your business from incurring a huge financial loss. If your business is not insured, then you risk incurring huge financial losses for legal fees, repair costs, medical costs, and replacement costs, among many others which could cripple your business.
- It boosts your business credibility
Having business protection insurance helps to boost the credibility of your business. If you show your clients proof of business protection insurance, it gives them peace of mind because they know that they won’t incur any financial loss in case something bad happens to your staff while working on their property. In fact, in some niches, such as roof repair and air condition installation, most clients usually demand the contractor to show them proof of business protection insurance before they sign a contract. So not having a business insurance cover may deny your business a lot of lucrative opportunities.
- It helps to protect your business from the unexpected
When running, you must protect it from unexpected risk. For instance, if an earthquake strikes that causes huge damage to your business, you may not be able to operate for several days while repairs are being made. In such a case, if you have a business protection insurance you won’t incur any financial loss because your business will be compensated fully for all losses incurred.
Leave a Reply