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Why Every Business in the Philippines Needs Business Insurance

So, you’ve opened up a door of opportunity, and finally, there you are, driving your way into the world of entrepreneurship!

Just like a lot of businesses, you will inevitably have to deal with logistics, finances and legalities. While these are requirements, there are some aspects that you would probably think are optional.

But in truth, they are as important as everything else. Such as insurance. Do you think your business needs it? You may say: maybe or maybe not. This will mostly depend on the type of business that you run, but here are some of the reasons why it should be on your list of must-haves for your business.

1. It ensures fair compensation when it comes to damages and injuries.

There could be a lot of circumstances where your business would get damage claims. With this, we are talking about bodily injuries (for you, for your employees and for anyone who would get under the roof of your company), a property damage or a reputation damage. If you don’t want to deal with the mess that could emerge from that, having an insurance would cover all those claims against your business.

2. It secures your income during unexpected catastrophes. [restrict]

Fire and natural disasters could greatly hurt a business since it will be forced to come to a halt due to damages. Because of this, there will be a big possibility for financial loss. Making sure your business is insured in the event of such unexpected disasters can help you recover quickly financially when your business is faced with operational downtime.

3. It helps you avoid bankruptcy.

When you have a business, you have to also consider the ‘what if’s’ for every situation. For example, what if you suffer from a financial loss due a product recall or perhaps, a lawsuit? What’s next for you? These are the type risks you should give thought for when running your business.

But as always, prevention is better than cure. If you can shield your business against the potential hazards that could lead to bankruptcy, it’s best to do it as soon as possible. Many a times you hear of business owners who lose their entire livelihoods due to their businesses going bust. Perhaps their business is loss-making, or they were unable to finance a business bank loan. It’s in these scenarios where insurance plays an important part in protecting your personal assets versus your business assets.

4. It adds up to your credibility.

For your business’ investors and shareholders to fully trust you, you and your business should possess some credibility. And there are a lot of factors that could affect the way people see your business – one of those is insurance. Knowing that your business is securely insured invokes a sense of confidence as your investors and shareholders not only know that you are serious in protecting your business but are also aware that any losses incurred will be recovered quickly.

One key measure to take is assuring that business insurance provider is paid on time. The worst thing to happen is lapsing a payment and not being aware of it. One of the best things to do is to set up a direct debit payment system with your insurance provider so that you’ll never forget to pay your business insurance, whether monthly or annually.

Actionable Takeaway:

It’s crucial to know the type of insurance you would need for your business. However, it is also a relief to know that you are protected, your company, as well as your assets. Insurance could help in any potential loss because who would want to wake up one day, thinking what could have been. So better get an advice now!

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