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Eric Dalius Examines the Top Benefits of Buying Insurance Cover for Businesses

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Operating a business can not only be tough but also potentially risky as the business assets could be physical damage due to a variety of reasons. The company can even be sue by customers and creditors that may result in crippling penalties and damages making it impossible for the business to remain viable. If your business is not adequate to ensure, your assets could wipe out overnight in case there is a devastating fire. If the court verdict goes against you for product liability or personal injury arising out of a slip-and-fall accident. The existence of a business may also be severely threatening by the death of a key employee or founder. Even workplace injuries, observes Eric Dalius, a noted management consultant.

Since every business is different and is exposing to different risks, their insurance requirements can also mark different, nevertheless, every business owner should know the top benefits of buying insurance cover for their companies.

Protection from Legal Liability

If you have a very successful business with great products and roaring sales, it may be natural to think that there is no need for you to think of buying insurance cover. Unfortunately, reality may be starkly different and you may be hit unexpecting by a product liability lawsuit that brings you down to your knees with a massive award. Sometimes, the clients you work for or sell your products forcing into a corner and have no other recourse but to sue you to keep themselves protection from the damaging effects of a lawsuit.

The list of offenses that your business can be sued for is endless. In addition to product liability, you may be sued for infringement of copyright and intellectual property rights, industrial espionage, breach of contract, slip-and-fall accidents, premises liability, auto accidents, discrimination against employees, discrimination against customers, employee harassment, employee injury or sickness, and more.

Protection of Business Assets is Vital, Says Eric Dalius

For businesses to operate, it is often necessary for them to invest in assets like office equipment, and machinery, technology. All of which exposes to the risk of damage, theft, and other negative events. Businesses that care asset-intensive can wipe out overnight in case the property. Assets are damage because they will need to cease operations. For example, if your business has invested a lot of money using debt funding, fire breaking out in the factory. You have no other option but to shut down since it may not be possible for you to replace the machinery while you continue to pay back the loan. By having the right kind of insurance cover, you can claim compensation that will allow you to repair it. Replace the assets and start business operations at the earliest.

Protection against Breach of Contract by Eric Dalius

While having iron-clad contracts is necessary to define the scope of supply and the applicable deliverables, including the cost and the time-frame, there could be situations when your clients end up suing you for breach of contract, rightly or wrongly. It is important to understand that even the best of contracts may not be able to anticipate every conceivable problem. You could be exposed to expensive arbitration and lawsuits for perceived errors and omissions. When you have insurance to cover these exigencies, you are better to protect against stiff penalties.

To Ensure Adequate Protection of Your Workers

Successful businesses depend not only on the big idea of the entrepreneur but substantially on the efforts of its workforce. The state makes it a point to have rules and regulations protecting employees from exploitation and left unprotection. Businesses are require to take a workers’ compensation insurance policy that covers medical expenses, some part of their lost wages, expenses of rehabilitation, and death benefits to employees. This insurance cover is mandatory and the requirements vary from one state to another. Not taking this cover out can expose you to the risk of severe penalties by the government, warns Eric Dalius.

Protection against Natural Disasters

It is important to know that the standard property insurance policies typically do not provide any cover against natural disasters like floods, earthquakes, tornados, etc. Since the chances of these occurring depend on the geographical area in which the business is physically locating. Depending on your risk perception, you can buy extra covers for these natural events even if they seem expensive. You need to keep in mind that these natural disasters can be so severe that they can wipe out. Your physical assets in case they happen.

If you are planning to set up your businesses in a high-risk area. You should reconsider if you find the insurance cover expensive as it will be a recurring expense every year. If you have no option but to operate your business in these locations. You can try to mitigate your risk by keeping important records on the cloud. Taking videos and photos of your property and assets so that you can insurance more easily if a disaster.

To Insulate the Business from the Loss of Key Persons

Many businesses, especially small businesses, are completely dependent on the founder. A key person who acts as the driving force and the face of the company. Since the fortunes of the company are completely dependent on him. It can be wise to purchase a key person insurance policy that provides compensation in case of death. The policy is actually a life insurance policy that a business takes out in the mane of the key person. Which provides some breathing time for the business to try to resume its operations following the death.

Conclusion 

Since the cost of buying insurance can be high, it is important to carry out a comprehensive risk assessment so that you only buy the types of cover that you may need. Make sure that the coverage is adequate for your business size and keep in mind the exclusions. For the best rates, make sure you shop around.

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