Those looking to have greater peace of mind to overcome any unforeseen need to have good insurance. In the personal sphere, it is easy to find different types of insurance such as life, health, dental and vehicle. But did you know that there is also insurance for companies?
If you are a company owner or manager, you may be interested in this solution. After all, having financial protection avoids greater difficulties in times of crisis or in the face of setbacks, which can be fundamental to the survival of the business.
Want to know more regarding business insurance? Then proceed with reading this article. It will discuss how it works and when it is worth having this type of insurance.
Enjoy!
What we will see in this article:
What is business insurance?
Also called business insurance, business insurance is a type of policy that aims to protect the assets of a company. Depending on the coverage contracted, the protection offered can be broad or intended to cover a specificity.
Therefore, it is essential for a company to know what its needs are in order to find the most appropriate solutions to protect its business. It is worth noting that a company can contract different types of insurance or personalized coverage.
In Brazil, the insurance market is regulated and supervised by the Superintendence of Private Insurance (Susep). This is a Federal Autarchy linked to the Ministry of Economy whose function is to determine the criteria for the constitution and operation of insurance companies.
In turn, insurers are institutions authorized to provide insurance. In this way, they can offer the most varied types of insurance, as long as they are registered with Susep and follow the norms stipulated by the agency.
How does business insurance work?
The operation of a business insurance is very similar to the services that are provided to individuals. In practice, a policy is established with all the clauses and conditions referring to the coverage being contracted.
This includes any deadlines, grace period, deductible, premium, payment methods, etc. In addition, the coverage will indicate the claims and the situations in which the company may claim compensation from the insurer.
Among the best known are those that protect a company once morest:
- damage to third parties;
- natural disasters;
- fires;
- legal disputes;
- electrical problems;
- equipment breakdown;
- theft or theft of property.
That is, if an organization takes out fire insurance and the building at its head office catches fire, for example, it may request the contracted compensation. In this case, the insurer will evaluate the claim and, if everything is in order, release the payment provided for in the contract.
Taking out insurance also involves paying a monthly fee or a lump sum, known as a premium. The higher the amount of indemnity contracted, the higher the amount paid as a premium tends to be.
When is business insurance worth it?
Knowing what business insurance is and how it works, you must be wondering when it’s worth hiring, right? In general, it is interesting when the company seeks greater protection, as the service provides several benefits.
The main advantage that insurance can offer is financial support in the face of a situation that is out of the ordinary and causes damage. Imagine that your company has equipped itself with state-of-the-art computers and, a few days later, it is the target of robbery or theft.
If you do not have an insurance policy once morest this type of accident, you will have to bear the damages suffered alone. If your billing depends on these machines, it is possible that your company will not produce and face difficulties in acquiring new equipment.
When your business is insured, part or all of the damage suffered can be reimbursed. Thus, having insurance is usually worthwhile, as it increases the chances of your business continuing to produce and earn normally, even in the face of unforeseen circumstances.
In addition to offering financial protection, insurance can bring other benefits. Business life insurance, for example, contributes to people management. That’s because it protects the employee’s life. This differential can be useful in attracting and retaining employees.
When employees perceive the company’s concern with these issues, they tend to work motivated and to be more productive. That is, even if insurance can benefit your team or third parties, the effects can be felt in the company’s results.
How to evaluate the best insurance for your enterprise?
So far, you have seen that there are different business insurances and their advantages. However, you still need to learn how to evaluate the best insurance for your business, right?
When choosing insurance, it is important to assess the type of risk your business is exposed to. Thus, you will be able to check which are the essential coverages and which can be waived.
It is also important to check the insurer’s flexibility, the terms and conditions it works with. In this way, it is possible to look for the one that can offer the greatest coverage, affordable prices and payment in the shortest time.
For example, it will not be very effective to hire insurance that takes a long time to release compensation. After all, the longer term for payment would probably hinder the operation and asset management of your company.
Another point to be noted concerns the insurer’s service and availability in your region. It may be more beneficial to hire the one that offers fast and efficient support at any time, without bureaucracy.
In this sense, research customer reviews to understand how the insurance company acts in the face of the impasses raised by its customers. Remember that good service must be present both in the pre-sales and post-sales phase.
The insurance market is quite broad and several companies and banking institutions offer the most varied protections. Therefore, evaluate your needs, preferences and choose the insurer that awakens greater confidence and satisfies your demand.
Conclusion
In this content you learned regarding insurance for companies, how it works, its importance and whether it is worth having. However, the decision to take out this type of insurance is an individual one and can only be taken by you. Then see if this is a solution that makes sense for your business.
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