How Important is Insurance in Business?

There are 2 answers to this question – the long version and the short version.

The short version is – absolutely YES you need insurance both for business and personal.

When you run a business, you automatically take on responsibility for the well-being of a range of people.

These include employees to customers.

In the course of doing your business, you have the potential to affect these stakeholders in serious and costly ways and business insurance protects you financially from some of these consequences.

Putting it simply, it is very important to have business insurance because the financial consequences of a potential mishap could easily wipe out the assets of a small business.

In the case of your customers or even those who may merely pass by your business, insurance provides protection in case some harm or injury is caused to the as a result of your business.

And of course, your business can be harmed as well – think fire, flood, theft etc.