Managing Business Risks with Business Insurance
Improving Your Odds
While there is nothing that can guarantee the success of your business, there are a number of things that can cause you to fail. Overcoming a flood or facing a lawsuit often presents challenges no small or growing business can survive. To provide a way to manage these risks, prudent business owners select different types and levels of business insurance.
Insurance providers have developed a range of policies to address multiple risks all businesses face. For example, a general liability policy offers broad coverage for a number of potential problems, including a customer being injured in your store. Other types of coverage deal with specific industries and occupations. Many professionals, such as lawyer, carry professional or errors and omissions insurance protection.
The types of policies business owners and managers can obtain to control the risk in running a business, cover:
- Key man insurance
- Workers compensation
- Interruption of business
- Umbrella coverage
- Special liabilities
- Many other general and specific policies
The basic advantage of insurance is the ability to spread the risk of any potentially catastrophic loss among a large number of policy holders. By making regular payments, or premiums, you participate in a pool of money the insurance provider collects and holds as a reserve. When you or any member of the pool suffers a loss, the funds are available to cover it and allow your business to overcome the effects of such a problem.
Taking Care of Business
One great advantage of the right business insurance coverage is the ability to turn most problems over to professionals and focus on your own business. If, for example, a customer were to slip in your store and be injured, they might file a lawsuit. If you have the right coverage, you simply contact your insurance agent. They ensure a competent law firm handles the case and, if a settlement or judgment is made, the amount is paid up to the limits of your coverage.
With all the many risks and difficulties business owners face every day, it makes good sense to make sure you have all the needed protection the right insurance will provide.