{"id":32,"date":"2019-04-23T11:20:52","date_gmt":"2019-04-23T05:50:52","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=32"},"modified":"2021-07-08T09:12:16","modified_gmt":"2021-07-08T03:42:16","slug":"7-reasons-why-your-company-needs-business-insurance","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/","title":{"rendered":"7 Reasons Why Your Company Needs Business Insurance"},"content":{"rendered":"\r\n<p><span style=\"font-size: 14pt;\">The Journal of IDCRO, a dentistry-related online magazine\u2019s <a href=\"http:\/\/www.jicdro.org\/article.asp?issn=2231-0754;year=2018;volume=10;issue=1;spage=17;epage=22;aulast=Bhanushali\">research<\/a>, revealed that more than 50% of dental practitioners were not aware of the Professional Indemnity Insurance, 20% felt that it was not mandatory and 9.5% did not feel there was a need to purchase the insurance. The research concluded that there was a severe lack of awareness about this insurance despite rising cases of claims against dentists by patients.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">This is just one example of a disturbing lack of awareness about the need and the importance of insurance for small businesses and individual professionals. <\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">There are numerous ways in which insurance can help protect and cover businesses, which business owners may fail to consider. This article will detail a few of the many reasons why your company needs tailormade business insurances.<\/span><\/p>\r\n\r\n\r\n\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a08fec8c27cf\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a08fec8c27cf\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#1_You_want_to_be_able_to_deal_with_uncertainties\" title=\"1. You want to be able to deal with uncertainties\">1. You want to be able to deal with uncertainties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#2_You_want_to_get_all_aspects_of_your_business_covered\" title=\"2. You want to get all aspects of your business covered\">2. You want to get all aspects of your business covered<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#3_You_want_to_ensure_your_business_is_up_and_running_after_a_loss\" title=\"3. You want to ensure your business is up and running after a loss\">3. You want to ensure your business is up and running after a loss<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#4_You_want_to_protect_yourself_and_others_too\" title=\"4. You want to protect yourself and others, too\">4. You want to protect yourself and others, too<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#5_You_want_to_enhance_business_credibility_attract_talented_employees\" title=\"5. You want to enhance business credibility, attract talented employees\">5. You want to enhance business credibility, attract talented employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#6_You_want_to_expand_your_business\" title=\"6. You want to expand your business \">6. You want to expand your business <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#7_You_want_to_improve_your_business_credibility\" title=\"7. You want to improve your business credibility\">7. You want to improve your business credibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.plancover.com\/insurance\/7-reasons-why-your-company-needs-business-insurance\/#To_sum_it_up\" title=\"To sum it up\">To sum it up<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_You_want_to_be_able_to_deal_with_uncertainties\"><\/span><strong>1. You want to be able to deal with uncertainties<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Your assets such as the office space, vehicle, inventory are indispensable and extremely valuable to the success of your business. However, natural disasters, machinery breakdown, burglary, or lawsuits arising out of negligence, are risks that cannot be ascertained and have the potential to cripple your business. Hence, it only makes sense to protect these precious assets. \u00a0<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Thus it\u2019s essential for any company to have business insurance that can cover these losses. Large corporations can face lawsuits running into millions. SMEs might not be able to sustain the crushing financial losses that arise in fighting out legal battles or out-of-court settlements. Individual professionals and consultants, too, could face the risk of legal suits. Thus, opting for suitable business insurance, that serves as an umbrella to cover all kinds of company assets, is a wise decision for every kind of business.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">In a nutshell, it would be okay to say that risks and dangers are always growing. Global warming has made natural calamities a more frequent occurrence. Your office premises may be physically protected but your business data faces the risk of cyber attacks What would happen if your customers file a lawsuit against you for losing their personal data to a cyber attack?, Would you have the financial resources to help your business stay afloat in such a scenario? This is where business insurance can help you live another day.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_You_want_to_get_all_aspects_of_your_business_covered\"><\/span><strong>2. You want to get all aspects of your business covered<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Every business is made of various components \u2013 employees, electronic assets, raw material, inventory, vendors, customers, third parties, and more. Events and happenings may affect any or all aspects of the business. This brings us to business insurance. Insurance cannot reduce the incidents of risk but it can be a financial tool to protect against expenses and losses.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">The kind of insurance a business may need depends on the industry it operates in and the nature of the business. For example, a fintech company would require Cyber Risk Liability Insurance, whereas an SME that is into manufacturing clothes may not need it, if none of its business activities are online. Commercial General Liability, Professional Indemnity Insurance, and Directors &amp; Officers Liability Insurance are among the most prevalent insurance plans in India and cover a whole range of business liabilities.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Business owners need to give a deep thought as to which are the areas of their business that require the purchase of business insurance plans. From the office building to equipment to inventory to business reputation \u2013 when one plans an insurance portfolio, there are many complex decisions and components to be considered.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_You_want_to_ensure_your_business_is_up_and_running_after_a_loss\"><\/span><strong>3. You want to ensure your business is up and running after a loss<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">A bustling caf\u00e9 had to <a href=\"https:\/\/www.myadroit.com.au\/business-interruption-insurance-case-study\/\">shut down<\/a> due to an outbreak of a disease caused by the eggs that were being served in the caf\u00e9. However, Business Interruption Insurance covered all their losses and expenses \u2013 staff salaries, vendor payments, and losses. \u00a0<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Businesses are akin to a pack of cards. Building a business involves a lot of effort, time and monetary investments but the slightest error or negligence can bring the whole edifice crashing down. And if you don\u2019t have the right insurance policies to protect you, you could be in for a severe heartache. Most businesses collapse in the event of not having insurances policies at the time of unexpected distress.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_You_want_to_protect_yourself_and_others_too\"><\/span><strong>4. You want to protect yourself and others, too<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Apart from protecting yourself, it is important for you, as a business owner, to have insurances that protect the key stakeholders \u2013 customers, employees, vendors, and investors, among others. One of the most important insurances for a business is the Commercial General Liability Insurance (CGL) that protects enterprises. It covers major claims that any business may face:<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<ul>\r\n<li><span style=\"font-size: 14pt;\">Bodily injury and property damage<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Personal and advertising injury<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Medical expense payment<\/span><\/li>\r\n<\/ul>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Moreover, there is a difference between the liabilities of the business and its owners. A business has limited liabilities, whereas the business owners or directors have additional liabilities.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_You_want_to_enhance_business_credibility_attract_talented_employees\"><\/span><strong>5. You want to enhance business credibility, attract talented employees<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Employees are an asset for a business. A business also has liabilities towards its employees. Employers may have to face losses and expenses related to employees. A legal case filed against the employer by the employee on the grounds of <a href=\"https:\/\/blog.ipleaders.in\/types-of-discrimination-in-workplace-and-their-legal-protection-in-india\/\">discrimination<\/a>, an employee getting injured in the course of performing a business activity or an employee being sued by a third party. These are some of the ways in which a business is liable to its employees\u2019 protection in times of risks. <\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Group Health Insurance, Workers Compensation, Professional Indemnity and Directors &amp; Officers Liability Insurance are some of the most prevalent types of insurances that businesses should purchase to protect their employees.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Here\u2019s an example: Company X was on the lookout for a new CEO. Most candidates that were pursued declined the offer on the grounds that the company did not have a Directors &amp; Owners Liability Insurance policy. It\u2019s possible. Insurances improve recruitment opportunities for director-level roles and also promote higher retention. Some industries could be more vulnerable to legal risks towards its directors. Thus these types of insurances are essential for companies to procure in order to recruit and retain strong leaders, directors and decision makers.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_You_want_to_expand_your_business\"><\/span><strong>6. You want to expand your business <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">As a business grows, so does its needs. Having a strong and comprehensive business insurance portfolio can help the owners and directors take important decisions while not having to worry too much about the personal and business legal ramifications. Expanding business requires confidence. Insurances provide a fair bit of confidence.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">In the current landscape of startups and entrepreneurial initiatives, business owners \u00a0have an increasing urge to expand their footprint across the country, and in some cases, globally. International markets bring with them, new risks, challenges, new rules and regulations, which if not followed to the tee, might leave businesses vulnerable to legal risks. Certain sectors such as IT, knowledge-based sectors, outsource-related industries, and individual consultants such as doctors, architects, brokers, and business consultants, among others, should definitely have insurances in place to be able to expand their business to new shores.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_You_want_to_improve_your_business_credibility\"><\/span><strong>7. You want to improve your business credibility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Insurance policies could help in improving business credibility and reputation, and instill trust in customers and new partners. Companies that face legal charges could face a lot of problems such as interruption in daily business activity, loss of productivity or low morale of employees, among others. Having the right business insurance policies would ease the company\u2019s stress and burden, allowing it to function smoothly.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Having the right kind of business insurance policies could also help in creating confidence and trust in customers, in turn, leading to higher revenue. For companies that aspire to expand its business in the foreign markets, having business insurance can ensure it is prepared for new kinds of risks, rules and regulations. Having business insurance would instill confidence in new partners and collaborations, especially when expanding to new geographies and markets. Those companies that aspire to expand their business should seek guidance from professional insurance companies that can offer the right insurance solutions.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To_sum_it_up\"><\/span><strong>To sum it up<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Business insurance can leave you confused, with the many factors that need to be understood before making a decision. This is why it is important to get business insurance advice from competent insurance companies who can aid you. <\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">PlanCover can address your concerns and queries with unbiased solutions that would benefit your business. Moreover, PlanCover\u2019s approach of transparency at every stage of the policy\u2019s life cycle ensures that you know what\u2019s happening with your policy. For more details visit our <a href=\"http:\/\/www.plancover.com\/\">website<\/a>.<\/span><\/p>\r\n\r\n\r\n\r\n<p>&nbsp;<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>The Journal of IDCRO, a dentistry-related online magazine\u2019s research, revealed that more than 50% of dental practitioners were not aware of the Professional Indemnity Insurance, 20% felt that it was&#8230;<\/p>\n","protected":false},"author":2,"featured_media":35,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[10],"tags":[2],"_links":{"self":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/32"}],"collection":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/comments?post=32"}],"version-history":[{"count":4,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/32\/revisions"}],"predecessor-version":[{"id":912,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/32\/revisions\/912"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media\/35"}],"wp:attachment":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media?parent=32"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/categories?post=32"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/tags?post=32"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}