Business Venture 2017: Types of Insurance a Small Business Must Have
The backbone of a country’s economy is the presence of small enterprises or small traders, however a large percentage of small business startups turn to be eventually a failure. But why is this happening? Well, there are factors affecting this low success rate among businesses. The truth is, it’s really impossible to mitigate all risks or overcome every challenge in your business, but there is a sure way to protect the future of your business through leveraging the right insurance policies. The different types of insurance applicable for small businesses include general liability insurance, property insurance, business owner’s policy, commercial auto insurance, workers compensation, trade credit insurance, professional liability insurance, directors and officers insurance, data breach insurance, homeowner’s insurance, renter’s insurance, business interruption insurance, credit life insurance and personal automobile insurance.
It is time to know more about trade credit insurance. If you are engaged in a business that is selling goods and services basing on credit terms, a major percentage of your working capital is probably tied up with accounts receivable, but with trade credit insurance, you can protect these accounts from losses as a result of credit risks like protracted default, bankruptcy and insolvency. There are several term used for trade credit insurance such as trade credit insurance include insolvency insurance, debtor insurance, bad debt insurance, credit insurance, business credit insurance, export insurance, or trade indemnity insurance, but all of these just mean the same. Trade credit insurance is a risk management product and insurance policy being offered by private insurance companies, as well as government export credit agencies, which is a type of casualty and property insurance. The beauty and essence of the concept behind trade credit insurance is the freedom you have for your small business, focusing on the most important things that truly matter. The trade credit insurance policy allows business owners to quickly approve credit limits, more working capital is obtained, customer experience is enhanced and assurance that your receivables are insured. Trade credit insurance plays a major and crucial role in facilitating international trade, wherein businesses can be protected from non-payment of foreign buyers as a result of political unrest, currency issues, expropriation and other conflicts.
Protect your business as early as now, because as a business owner, it is your responsibility to assure everyone within your organization that everything is under control and are protected. Invest in a trusted, reliable and reputable insurance company, regardless of your chosen business insurance, and remember that it is only you who can make the final decision of what type of insurance that is really applicable for your business, because you’re the one who can determine your business needs and goals.