When an organization buys insurance, it transfers the cost of a potential loss to the insurer in exchange for a fee known as a premium. Ideally, is just but a way of managing risks. Sadly, many organizations feel that business insurance is an unnecessary expense that they cannot afford or a luxury for more established organizations. Here are some of the benefits of insurance to your organization.
Protection against catastrophic loss
Business organizations can benefit immensely in being covered by insurance. Natural disasters and misfortunes including fire, tornados, hurricanes, floods do happen and they may be the cause of closing down your businesses. When an organization has insurance against these events, loss and closure are only temporary. Organizations should appropriate covers suitable for their industry.
Insurance against Liability
If a staff or any other persons slips and falls while playing patronage to your organization or if your product has some defects that occasioned some injuries to a customer, without insurance, this can spell doom and even closure. Organization liability insurance covers all the accidents that occur on the organization’s premises, defects in products and mishaps that accidentally occur in the course of normal business operations – on and off the premises.
Even with the innovations of latest information technology systems and CCTV’s camera, many organizations still, fall victim to both cyber crime and break inns. Big organizations are specifically targeted by criminals of all sorts. Of late, international cyber crime is the main threat to governmental and non-governmental organizations. Small businesses have also not been spared with buglers looking for loopholes to sneak in or ambush even in broad daylight. Office implements, stock, cash, online business deals, customers’ reputations, and records need be insured against theft. There is insurance cover that can protect an organization against all these types of theft.
One thing that’s for sure is that almost all organizations are faced with litigation at one point or another. There are some legal challenges organizations face regardless of how big they are; it can be a significant risk if the management ignores litigation insurance cover. We live or rather organizations exist in a litigious society. Well, some governments and states have capped judgments and sought to do away with frivolous lawsuits. But this hasn’t protected organizations enough. Every day organizations are sued by individuals as well other businesses for various reasons, some legitimate others not. The fact of the matter is that organizations need insurance to protect them because even the most frivolous lawsuit can be very costly to defend.