Owning a Business: Types of Insurance a Small Business Must Have
The country’s economic backbone are small businesses which are handled by traders, retailers and merchants, but sad to say that a large percentage of small business startups turn to be eventually a failure. But why is this experienced by small businesses? Well, the low success rate are caused by different factors. It is understood that it is impossible to overcome every challenge and mitigate all risks in a business, but it is possible to protect the future of your business through leveraging the right insurance policies. Business owners may consider getting any type of small business insurance including workers compensation, trade credit insurance, data breach insurance, homeowner’s insurance, renter’s insurance, business interruption insurance, credit life insurance, professional liability insurance, general liability insurance, property insurance, business owner’s policy, commercial auto insurance, directors and officers insurance, and personal automobile insurance.
Let us discuss in detail, trade credit insurance. A substantial percentage of your working capital in a business selling goods and services basing on credit terms is probably tied up with accounts receivable, so it is a good thing that trade credit insurance is now available to provide protection of these accounts from losses as a result of credit risks such as protracted default, insolvency and bankruptcy. Trade credit insurance are also called business credit insurance, debtor insurance, export insurance, insolvency insurance, bad debt insurance, credit insurance or trade indemnity insurance, but all of these terms mean the same thing. 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 for the growth, development and success of your business. 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 role in facilitating international trade, wherein a business can protect themselves from non-payment of foreign buyers as a result of political unrest, currency issues, expropriation and other conflicts.
Being a business owner, it is important to protect your business as early as now, because it is your responsibility an accountability to assure everyone within your organization that everything is under control and are protected. Invest in a trusted 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 applicable for your business.