The benefits of insurance for businesses may not be widely known. The reason is, people are more familiar with the benefits of insurance for health and life only.
Business insurance itself aims to protect or reduce the risk of financial loss that you will bear when a risk happens to your business.
There are always risks, big or small, while running a business. You don’t need to worry because with insurance the risk can be borne by the insurance company.
Business can still run without any fear of loss.
Business insurance benefits
The benefit of insurance is to cope with risk. Basically, the benefits of business insurance are the same as insurance in general.
However, for this type of insurance, the risks that are addressed in particular are risks that can arise from doing business, from risk transfer to loss prevention.
That is why so many entrepreneurs choose to insure their business.
Therefore, not a few entrepreneurs dare to continue to pour money into the business they will or are currently in. Any losses incurred will be covered by insurance.
So even if the business fails, you can still handle the bankrupt business . So, what are the benefits of business insurance that we can get? Here are some of them:
1. Create a strong business foundation
By having business insurance, you don’t need to worry anymore about the business risks that will occur. The reason is, the risk will be borne by the insurance company which indirectly makes the foundation of your business stronger.
Well , one of the factors that makes a business run smoothly is having a strong or solid foundation. For this reason, you must keep the foundation as good as possible.
In a way, efforts to maintain the business will bear fruit with the preparation of prevention and risk management.
2. Risk protection
Generally, not a few entrepreneurs use business insurance for property. So, insurance is used to protect the assets of the company.
For example, the risk of asset theft, fire, disaster and so on.
Business Insurance Benefits, Risks Covered, and Products
With insurance protection for your business, the security of business activities will also be more guaranteed.
3. Guaranteed delivery of goods
Today, many businesses are related to the delivery of goods. One of them is a business in the field of trade.
Insurance is very important for this kind of business. Why? The reason is, business in the trading world is one of the businesses with a high level of risk and even most often results in losses during the shipping process.
Not only damaged, the risk of goods being lost during the shipping process is also very common.
Well , by having business insurance, the risk will be the responsibility of the insurance company , including covering damaged or lost goods.
4. Become a bolder entrepreneur
During the process of building a business, there are many risks that can occur. Generally, a large business will have a large level of risk as well.
That’s why insurance is needed to protect or reduce the level of loss that you will bear.
That way, it will indirectly make you a braver entrepreneur because there is someone who bears it, namely insurance .
5. Compensation
Every business, of course, has a level of risk, whether large, medium, or small. Well , if in fact you experience a loss, then inevitably you have to be prepared to bear the loss.
If the loss is small, maybe you won’t bother too much. But, what if the loss is large and even makes you go bankrupt ? He might have a heart attack because he was so shocked.
But don’t worry, that won’t happen if you use insurance. Because the insurance company will cover the losses experienced by your business.
Types of business insurance
What type of insurance do you choose as protection for your business? Here are the options and their explanations:
1. Liability insurance
Liability or public liability insurance can help protect your business from claims by third parties if there is a risk of loss or accident to others due to the products you sell.
For example, suppose a customer buys a food product from your business. Then the consumer gets poisoned after consuming it, and sues your business.
Business Insurance Benefits, Risks Covered, and Products
Well , this liability insurance will provide protection in the form of compensation for legal fees that arise from the claims of these third parties.
2. Property insurance
Property insurance serves to protect the building or place of business, both owned and rented.
Not only the building, this insurance also includes coverage for its contents, such as equipment, furniture, and inventory.
The risks that can be covered generally include storms, theft, and fire. You need to note, most insurance companies do not cover the risk of natural disasters such as floods and earthquakes.
3. Workers’ compensation insurance
Workers compensation insurance or worksmen compensation serves to provide protection to employees. This type of insurance is better known as employee insurance .
The insurance company will cover the workers’ compensation costs such as medical treatment, disability, childbirth, or death.
4. Business interruption insurance
The risks that can occur in the business that you run can certainly cause disruption.
This disruption can be serious and cause loss of income because employees cannot work in the office or production is hampered.
Business interruption insurance provides coverage for business interruptions that can cause loss of income within a certain period of time.
The reason behind the importance of business insurance
We cannot control everything, as well as business dynamics and the risks that come our way. Even though you have measured and measured the possibility of what might happen, you can’t handle everything yourself.
And in critical times, business insurance protection can help you minimize losses that must be borne.
You will be lucky if you can bear the loss. However, if the loss turns out to be more than you imagined, it is impossible to fix everything alone.
Well , there are several risks that might occur and at that time you need insurance to cover them, namely:
1. Theft
Any sophisticated business security sector cannot guarantee you are free from criminal acts such as theft.
Business Insurance Benefits, Risks Covered, and Products
When this happens, you don’t have to worry about finding replacement funds to cover losses. Because insurance is ready to provide full protection for your business.
2. Fire
Disasters such as fires can indeed be prevented. However, we cannot control human and natural factors as well as the direction of your business.
Here the role of business insurance is ready to provide protection for business assets when this disaster occurs. Existing losses will be paid for by the business insurance company where you join.
3. Natural disasters
Indonesia is known as a country prone to various natural disasters. When and how long this natural disaster occurred is never known with certainty.
Meanwhile, natural disasters can certainly threaten your business.
So, there is always a reason for you to use business insurance or business insurance to protect all existing assets.
Thankfully the loss is small, you can bear it yourself. However, when the loss is very large, business insurance can help you cope with the losses that arise.
3. Accident
Don’t think accident insurance only applies to individuals. Because every business person needs this.
Although not due to our carelessness, every accident, whether caused by humans or nature, has the potential to threaten your business.
That’s why you really need accident insurance for your business. Especially those of you who have a business in the trade sector.
The risks covered by business insurance
Of the various risks that threaten the stability of the business, there are several that are definitely guaranteed by business insurance, namely:
- Losses due to natural disasters
- Loss due to accident
- Losses due to fire
- Losses due to theft and looting
- Losses due to natural disasters
- Losses due to strike
- How to apply for business insurance
- If you are an entrepreneur who wants to register for business insurance, the method is very easy. First of all, you need to determine which insurance company you want to buy a business insurance policy with.
Then follow these steps:
Come to the company’s office or to the relevant insurance agent or broker.
Bring the required registration documents, generally such as a photocopy of your identity (KTP/SIM/Passport), insurance application forms, bank accounts, and other documents specifically required by the insurance company.
If you meet the requirements, then the insurance company will provide a policy. Some companies give time to study the policy, study carefully what risks are guaranteed and not guaranteed, and also the calculation of the premium.
If you agree to buy it, then you have to pay the first premium first.
You can also register more easily through Lifepal! Compare the best business insurance products such as employee insurance with the lowest premium prices and complete benefits.
Example of business insurance
There are many types of insurance that you can use according to your business needs. Here are some examples of business insurance that you may need and their benefits.
1. Askrindo Liability Insurance
This Askrindo insurance is suitable for those of you who have businesses such as hotels, hospitals, or shopping centers. In addition, this insurance also protects professions such as doctors, lawyers, architects, directors.
These types of insurance cover include Public Liability, Employers Liability, Comprehensive General Liability, D & O Liability, Professional Indemnity, and Air Carrier Liability Insurance.
Material loss due to bodily injury is one of the benefits of this insurance.
You can also add additional benefits such as reimbursement of court fees, reimbursement of court assistance fees, claims for lost profits, and claims for financial losses.
2. Tugu Pratama Product Liability Insurance
This type of insurance also includes liability insurance. This product is intended for companies in the manufacturing, distribution and retail industries.
This insurance provides coverage for the risk of legal liability to third parties for personal injury and property damage due to products manufactured by the insured.
3. ACA Insurance All Property/Industrial Risk
Furthermore, there is a property insurance product from ACA that can protect your office building to your factory.
This insurance provides compensation for the risk of damage to the insured assets due to fire, explosion, natural disaster, hurricane, flood, to damage due to road construction.
This insurance also provides legal liability for claims by third parties.
4. Avrist Property All Risk
Avrist PAR insurance covers various types of buildings, including homes, offices, factories, and places of business.
You can get compensation for the risk of riots, hurricanes, storms, floods, earthquakes, volcanic eruptions, landslides, tsunamis, and ground movements.
5. Allianz UsahaKu Insurance
This insurance provides protection against damage to business premises ranging from shops, offices less than 6 floors, lodging, salons, hospitals or clinics, and various other business places.
Coverage is provided for damage due to fire, lightning, lightning, underground fires, aircraft crashes, and smoke.
In addition, this insurance also provides compensation for damage from riots, strikes, damage due to evil deeds, riots, terrorism and sabotage, earthquakes, landslides, and many more.
6. Employee Insurance Lippo Insurance Medicare
The Medicare insurance policy from Lippo insurance is an employee health insurance ( employee benefit ). This is one of the types of workers compensation insurance required for businesses.
Here are some of the benefits of this insurance:
Hospitalization costs, ICU, ICCU, surgery, drugs, laboratories, physiotherapy, ambulance, surgery.
Coverage of outpatient expenses before and after hospitalization.
Outpatient consultation fees for general practitioner and medicine according to doctor’s prescription.
Coverage for dental care costs.
The cost of giving birth naturally or by caesarean section.
7. FWD Employee Insurance
Another type of employee insurance that you can choose is the Healthy Free policy from FWD. This employee insurance or employee benefit provides coverage for:
In addition to business insurance, there are various types of insurance in Indonesia that can be used as your protection. In general, here are the benefits that you can get by having insurance:
1. Risk transfer
The most important benefit of insurance is to transfer risk from the customer to the insurance company. By having insurance, the risk that you experience will be transferred and borne by the insurance company.
So you can feel more calm and secure because not only the object of coverage is protected, but also your finances.
2. Help manage money
If your favorite car is damaged, of course you have to spend a lot of money to fix it.
Of course, if you don’t expect this risk and there is no preparation, you can be distraught because of cost issues.
Car insurance helps you manage your finances well, by providing compensation for car repair costs when submitting a claim. That way, you will be able to manage your finances more easily.
3. Minimize losses
According to the type, each insurance serves to help minimize the losses you experience. So you don’t have to bear all the losses in the event of a risk.
Those are the five benefits of insurance for business so that your business runs smoothly. Yes, even though you have to pay premiums regularly, having insurance will definitely help you to face the risks that will occur in the future.
