It is wise when companies leverage insurance policies that protect their businesses. In the event that a disaster occurs, investors and officers of the company need not worry because their losses will be ameliorated.
This article highlights the significance of insurance in guaranteeing business sustainability.
In Nigeria, the regulation of the insurance industry is the responsibility of National Insurance Commission (NAICOM).
The obvious and most important benefit of buying insurance policies is the replacement or payment for losses suffered. An insurance policy is a contract used to indemnify individuals and organizations. This policy helps to increase customer support, grow business confidence and reduce unforeseen losses.
Another important point to note is that owning an insurance policy helps a business look credible.
Business insurance also helps assure a company’s prospective clients and customers that you’re a safe option. If anything goes wrong with the company’s product and services, and the customer suffers any loss, the customers will be duly compensated.
Furthermore, if a company borrows money to finance projects, equipments, and operations, the loan agreement will usually contain an insurance requirement.
Operating a business is fraught with inherent risks: An employee could get injured at the workplace; a natural disaster could destroy company property; or a client could file a suit alleging a contractual breach. Owning a business policy can satisfactorily protect a company from risks that might threaten its sustainability.
For the reasons examined in this post, it is important that a company protects its assets by exploiting the benefits of an insurance policy.