Owning a Business: Types of Insurance a Small Business Must Have
In very country, the economic backbone are small enterprises owned and managed by retailers, traders and merchants, but the sad truth is a large percentage of small business startups turn to be eventually a failure. What is the reason behind this trend? Well, there are factors affecting this low success rate among businesses. While you cannot mitigate all risks in your business or overcome every challenge, you can protect the future of your business through leveraging the right insurance policies. Business owners may consider getting any type of small business insurance including workers compensation, trade credit insurance, data breach insurance, homeowner’s insurance, renter’s insurance, business interruption insurance, credit life insurance, professional liability insurance, general liability insurance, property insurance, business owner’s policy, commercial auto insurance, directors and officers insurance, and personal automobile insurance.
Now let’s talk about trade credit insurance. A substantial percentage of your working capital in a business selling goods and services basing on credit terms is probably tied up with accounts receivable, so it is a good thing that trade credit insurance is now available to provide protection of these accounts from losses as a result of credit risks such as protracted default, insolvency and bankruptcy. The other terms used to refer to trade credit insurance include insolvency insurance, bad debt insurance, credit insurance, business credit insurance, debtor insurance, export insurance, or trade indemnity insurance, but all of these terms mean the same thing. Trade credit insurance is a type of insurance product and at the same time a risk management product that is offered by private insurance companies, and government export credit agencies, also considered as casualty and property insurance. The major advantage of trade credit insurance is the freedom your business has to be able to focus on the most important things that truly matter. The nature of trade credit insurance policy enables business entrepreneurs to approve credit limits faster, get more working capital, customer experience is enhanced and assurance that your receivables are insured. Trade credit insurance has a major impact in facilitating international trade, wherein a business can protect themselves from non-payment of foreign buyers as a result of political unrest, currency issues, expropriation and other business disruptions and conflicts.
Protect your business as early as now, because as a business owner, it is your responsibility to assure everyone within your organization that everything is under control and are protected. Invest in a trusted and reputable insurance company, regardless of your chosen business insurance, and remember that it is only you who can make the final decision of what type of insurance that is applicable for your business.
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