It seems that in this day and age we have an insurance for everything. Life insurance, home insurance, car insurance – some celebrities even have insurance for their voices and body parts. But, with so many options, have we lost track of the true need for certain important kinds of insurance?
Business insurance is a major consideration for businesses. It works to protect companies from force majeures and acts of damage, theft, or accidents. However, it also helps to protect the consumer. But, how exactly does business insurance benefit the consumer?
If a business has insurance, any damage to you as a consumer or your property that can be traced back to a product, service, or even advice given by the business will be covered by the insurance company, meaning that you are more likely to get compensation for it. General liability insurance for small business means that no matter how small a business – even a sole trader at home – they are protected and can be reimbursed should activities committed through the business lead to financial damage. If a company doesn’t have insurance, the consumer could end up stiffing the bill, since they can divest assets and start a new company, while consumers are picking up the pieces.
Even businesses that own assets you use – such as landlords, freeholders, or people who rent you vehicles – need to be covered to protect you. The business insurance may protect the business as much as the consumer, but there are other ways in which individuals in the business can be protected, leaving you liable. Businesses should also have compensation for anyone injured as a result of the business’s practices. This can help cover you for accidents and the cost of being out of work or travelling to and from hospital. Again, if the business is uninsured, it can divest assets, remain protected through a business structure and move on, while you are left struggling to make ends meet. You also need to make sure that you are being charged for the right kinds of insurance and that businesses aren’t taking advantage of you.
One of the latest kinds of insurance that businesses should have in place in order to protect consumers is data breach insurance. This helps provide protection against any losses as a result of breached data. This means that companies who have lax data procedures can end up placing you in a difficult situation. While data insurance is a fairly recent phenomenon compared to other insurances, anyone who has ever had a data breach can attest to how dangerous and difficult it can be, especially for something such as your bank or sensitive financial information.
Business insurance obviously protects businesses, but it also protects you, the consumer. Ensure that everyone you give money to has the relevant insurances and you will be protected should anything go wrong. The hope is that insurance will never be needed – but, as some can vouch for, it really does pay to ensure the businesses you deal with have the right insurances.