Finance

The Best Way to Protect Your Company Against Financial Risks or Losses

Here are the criteria with the help of which you can easily assess an insurance policy offered to you by any company
The Best Way to Protect Your Company Against Financial Risks or Losses
Image credit: megaflopp | Shutterstock
Director of Probus Insurance
4 min read
Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Whether you run a multi-million company or has just entered the world of business (newbie), risks and losses (high or low) are bound to happen. As Millard Drexler rightly said that, “You can’t run a business without risks.”

Opting for the right insurance for your business will offer a protective shield to your business in case of unforeseeable accidents or damages. With the various policy options available, one can select the best one that suits their business and protect against natural or man-made peril while staying stress-free and focused on work.

Business-related insurance policies are highly recommended for small businesses owners since they might have more personal financial exposure in case they face any loss. There might be times wherein companies might not be able to assess business risk effectively. In such a case, these business owners should consult a reputed and reliable Insurance Broker which comes with considerable high experience in the market and ensures that your business can seamlessly assess the financial risks. Here are details about how these plans are the finest way to protect your business against financial risks or losses:

Business Liability Insurance

In the event of a formal lawsuit or any third-party claim, the business liability insurance policy protects the business owner and/or a company. Under this policy, any financial liability which is incurred and the expenses related to the company’s legal defence are covered. Professional, General and Product liability insurance are the three different types of business liability insurance.

Property Insurance

Under the Property Insurance plan, the insurer offers protection to your business’s building and different personal property. This includes signage, tools, furniture, equipment and inventory in event of fire, theft or storm.

Cybersecurity Insurance

This insurance helps to protect the businesses that have undergone a financial impact due to the effects of risks occurring as a result of the digital transfer of information or risks associated with the use of the Internet. This insurance plan plays a significant role in offering a complete security option for both preventative security mechanisms and an incident response plan that helps in overcoming the monetary consequences as a result of data breach or cyber-attack.

Commercial Auto Insurance

This type of insurance protects your company’s vehicle and also protects vehicles that carry employees, products or pieces of equipment. However, if the employees are using their own vehicle for business, their own personal insurance will cover them in the event of an accident.

Professional Liability Insurance

This insurance ensures against negligence claims that result from mistakes or failure to perform. There is no such coverage that would fit all instances; each industry has its own unique concerns that need to be addressed.

Product Liability Insurance

This insurance policy offers protection to different business like distributors, wholesalers, retailers and manufacturers, against any legal liability arising out of third-party injury. It also covers the damage to property which is caused by the consumption or use of the product sold or supplied. In addition to this, the policy also helps to protect a business against a legal issue and covers the expenses involved in the same.

Business Interruption Insurance

The business interruption insurance is for businesses which require a physical location. This insurance compensates a business for its lost income during events that cause a disruption to the normal course of business.

Business Owners Policy

These policies combine both liability and property coverage into one package. This kind of policy is popular among a variety of small and medium-sized businesses such as restaurants, retail stores, wholesalers and contractors.

There are several other benefits such as buying such an insurance policy helps to improve the credibility of the business in the employees and client’s eyes. There could be cases wherein the client wouldn’t find it comfortable to work with a business which is not insured.

More from Entrepreneur

Jason's expertise and experience can help you with storytelling, motivation, and pitching your business to media.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur