Business and Commercial Car Insurance
Commercial Insurance is a way for businesses to protect themselves from the unforeseen. A new business could fail. An established business could fall. An accident could inflict huge financial losses on a company. A customer who has purchased a defected product might sue the organization for damages. A lender might just refuse to finance a company if it does not have proper insurance cover. Do you need more reasons for getting commercial insurance?
- For New Businesses
With a new business you can never be sure. It could take you to the riches or throw you hard on the rock face. Hence, it becomes advisable for new businesses to cover the risks with proper commercial insurance. In fact, new businesses need the insurance cover even more than the established businesses. A business running for a few years has buffer to act as a cushion in event of unexpected losses. On the contrary, a new business stands on lose earth, and critically requires commercial insurance to provide backup if something goes wrong.
- For Established Businesses
Established businesses are on higher pedestal compared to a new one. But this doesn’t mean at all that they are risk free. If a project fails, it is bound to affect the company negatively. And if the shock is bigger, the company might find it hard to recuperate. An established business has high stakes on a new venture or a project, which makes it better for them to back themselves with appropriate financial insurance. If a plan doesn’t deliver, the insurance would enable them to withstand the financial pressure.
- Loans and Lending
Most lenders will require you to carry proper commercial insurance in exchange for offering funds. You would not get the required funding in absence of the cover. If you need to get loans to fructify your plans, you would do well to get the insurance cover before reaching to a lender. As the insurance cover is taking care of other aspects as well, you need not think twice about it.
- Guard Against Liability
Insurance would provide your organization cover against any liability. For instance, there are chances of a defected product escaping the quality checks and reaching the market. The customer who purchased the product might make a claim against you. Commercial insurance would cover this claim as a third party liability. In absence of any such insurance, the company would have to suffer the financial shock on its own. Though there are no laws in the US, federal or state, that require a business to have liability insurance, they would do well to protect themselves against liability.
- Protection Against Accident
You can never be sure about anything. A calamity could strike your business when it is least expected. If there is any damage to the workplace because of an accident such as fire, flood, malicious damage or stolen goods, the insurance company would take care of the loss incurred by you. Loss of earnings can also be included within a commercial insurance policy. Think what it would have been sans insurance cover!