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  • Amanda Bird

Business Insurance: Why Your Company Needs One, Part 2

Updated: Nov 24, 2021

4. Minimise the Financial Impact of a Disaster


Anything that jeopardises your company operations is considered a disaster in our books. Forking out your own money for large-scale events or disasters can put your statements in the red for a long time.


These "disasters" could refer to a claim that your services resulted in client injury, that your organisation defaulted on its promised services or an unforeseen occurrence that demands the relocation of your business.


Professional liability insurance can save your bacon in the first two situations, and business interruption insurance will help your business weather the storm–literally or metaphorically.


5. Keeps the Business Running Smoothly


Income loss insurance covers your company in the event of a loss or damage specified in your insurance policy. It covers your lost revenue and day-to-day running expenditures, and you can add supplemental coverage to guarantee payroll is paid within a specific time frame.


Loss of income coverage may be added to your commercial property insurance policy, and your Financial Advisor can tailor a plan to your unique needs. It is important to note that not all interruptions are covered by insurance. That is why it is critical to prepare for disruptions by planning out a business continuity strategy beforehand with your financial adviser or insurance specialist.


6. Protects Business Reputation


Your company's reputation is valuable. Therefore you don't want anything to harm or destroy it. Things can go wrong no matter how much pride and attention you put into your business. Another area of your organisation that business insurance may help with is protecting your reputation.


Some of the coverages you may need to consider are as follows:


Professional Indemnity Insurance: If your company provides professional advice and services, Professional Indemnity insurance is a must-have. It is intended to react to claims made against your company for damages caused by natural or claimed negligent acts or omissions in the supply of your professional service or advice.


Professional Indemnity insurance will also help with the legal fees involved with responding to or handling policy-covered claims.


Management Liability Insurance: If you own or run a business, you have certain obligations that may hold you personally responsible if you fail to meet them.


Management liability insurance protects directors, officers, and the covered firm from the numerous risks associated with corporate management.


While Professional Indemnity insurance protects the advice and services you give to your clients, Management Liability insurance covers the risks that arise throughout running your firm.


7. It Allows You to Make Future Business Plans With Confidence


There are few guarantees in life, but with proper planning and administration and the use of recognised instruments such as insurance, you may build a solid plan for the future and have reasonable confidence that it will bear fruit.


Insurance minimises uncertainty, allowing company owners to focus on growing their companies rather than devising methods to deal with improbable situations. When company owners get the right insurance, they invest in the longevity and continuation of their businesses, which makes sense.


Conclusion


Minimising risk through business insurance is a straightforward and excellent business approach. Making the correct choices may keep your assets safe and your business running smoothly.


If you're looking for business insurance on the Gold Coast, New Wave Insurance can help! We save you time and money by removing the need to talk directly with insurance providers. Find the right insurance for your business by reaching out to us today for a complimentary quote!


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