Friday 20 April 2018

The Need For Commercial Business Insurance

By Betty Wright


Risk is everywhere. No one can escape risk. From the moment a human being is born to the moment he dies, he will always be facing risk. The same case applies to businesses. They always face risks on a daily basis. Some of those risks have the potential of causing total business failure. If there are risks that can be prevented, they should be prevented. If there are those that cannot be prevented, they should be insured. Therefore, good commercial business insurance should be taken. This will be a very important asset in an organization.

It should be known by entrepreneurs not just in America but also entrepreneurs all over the world, that insurance is no longer a luxury. It is an absolute necessity whether one is operating a small enterprise or a big multinational. The importance of being covered must not be taken for granted by the serious entrepreneur who desires to grow his business.

An uncertainty or rather a risk will lead to a loss. It can make an individual to lose a vital asset that plays an important role in generating profits. On the other hand, the loss of cash can be the order of the day. A serious loss will definitely make an enterprise to completely fail. One needs to prevent such a possibility.

People work hard to build businesses. Some of them usually use all the savings of their lives to set up an enterprise. There are also those who resort to take bank loans. Thus, it is not a good thing to lose everything with the blink of an eye. That is the reason why a commercial insurance is needed.

There are things that can be prevented. Incompetence affecting the bottom-line can be prevented by simply hiring the most qualified individuals. However, there are matters that are beyond the comprehension and understanding of human beings. That includes issues that are influenced by Mother Nature. Such matters need to be covered so that to avoid suffering a loss if they occur.

Insurance is a financial investment. It is also a cover against financial loss. Most people also find it to be an important source of peace of mind. As an entrepreneur, it is good to have the guarantee that financial loss will not be the order of the day in case a particular event occurs. Such a guarantee will make one to focus easily.

A single policy will not help in any way. It is just like a single type of investment such as buying only stocks will make one to be exposed. What is needed the most is a portfolio of policies. First and foremost, the uncertainties that are likely to affect an enterprise should be identified. Secondly, they should be insured.

The motivation for entrepreneurship is the desire for profitability. For that to be the case there should be the maximization of incomes and the minimization of expenses. The success of a firm also depends on the ability of the firm to prevent serious losses that are likely to be caused by uncertainties. An insurance policy will cover a firm in the event of a loss.




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