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Last Updated on February 25, 2018 by Work In My Pajamas
Business owners keep a fixed eye on their bottom line, and you may understand the importance of reducing overhead as much as possible. While some overhead may indeed be inflated and unnecessary, the fact is that the premium on business insurance is ultimately worth paying for. In fact, there are five key reasons why you need to have business insurance.
Loss of Income
There are many events that can interfere with your company’s ability to generate income, but your requirement to pay salaries, rent and more may continue. Some types of business insurance have loss of income coverage. For example, if you are unable to generate income due to a structural fire, a major weather event or theft of property, your lost income may be replaced by your insurance policy. This may provide you with the ability to remain in good standing with creditors and to satisfy other financial obligations.
Replace Inventory
Inventory is the lifeblood of many companies, and without it, you may not be able to generate a profit. Business coverage is available to replace lost inventory so that business can return to usual for you. Inventory may be damaged due to theft, flooding and many other events.
Liability
You may face liability if someone is injured or worse while on your property, using your products, consuming the foods your venue prepares and more. Keep in mind that you may be liable for medical bills, funeral expenses, damaged personal property and other expenses for employees and customers alike, and liability insurance can pay for these expenses.
Personal Property Losses
Whether you rent or own a property, your facility may have equipment, furnishings and many other items of value. These may be damaged, destroyed or stolen, and this can be a considerable financial loss to you. Personal property coverage may also be referred to as FF&E coverage in a business policy, and it essentially provides you with repair or replacement coverage.
Real Estate Losses
If you own your business property, you may need to invest in real estate coverage. This is coverage that can pay for repairs or for the full replacement of your structure if it is damaged or destroyed. Your business real estate is an investment, and this coverage provides you with protection from many damaging events.
There are many types of coverage that you can purchase for your business, and each type offers real benefits to you. Take time to consider each of these thoroughly, and purchase the coverage that will provide your business with the adequate protection from loss to benefit you.
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I never knew that there’s a type of business insurance coverage that can cover your loss to generate income. My husband is looking to own a social bar. He has never tried having a business before, so this is going to be a big move for him. He understands how a business can experience loses, so it’s important for him to ensure that if that happens, he can still be able to pay for what’s due to his employees. I will make sure to share your blog with him.