The presence of various types of insurance products available today is certainly not without reason. Because, basically there are a lot of insurance benefits that are actually very important for our daily lives.
It’s just that, the negative assessment that most people have given to insurance products, makes many of them feel lazy to look for information related to a number of benefits offered.
So, what are some of the benefits that can be obtained if we buy an insurance product? Find out the answer through the following discussion, yes.
In general, there are several benefits offered by various insurance products. Some of them are as follows.
1. Risk protection
It is undeniable that one of the greatest benefits of insurance is being able to provide protection against the risk of financial loss caused by a certain event or disaster.
Because, we never know what life will be like in the future. Will it run smoothly according to plan, or will there be obstacles that must be faced and have an impact on financial conditions.
Therefore, these various types of insurance are here to provide a sense of security and calm for policyholders when they have to face a financial risk.
2. Easy money management
Maybe many people don’t realize that actually one of the benefits of insurance is that it can make it easier for you to manage finances.
The reason is, most people will generally find it difficult to collect money especially with large nominal for purposes that were never planned or never crossed their minds.
Meanwhile, disasters such as illness, accident, death, and fire are some examples of conditions that we certainly cannot control when they occur.
Therefore, insurance is considered very important because it can help you manage and collect a number of funds to bear the risk of financial loss from these unexpected conditions.
The reason is, by buying an insurance policy, you are required to pay a premium every month with a nominal that has been determined at the time of the initial agreement.
3. Insurance benefits to provide business protection
If maybe all this time you only know that insurance is only limited to providing benefits to protect ourselves, that thinking is certainly wrong.
The reason is, insurance also has various types of products where each type offers different benefits, including one to protect the business.
Through business insurance products, business actors can provide more protection for their business continuity so as not to experience the risk of large losses that can disrupt the company’s cash flow.
Insurance benefits for business
Just like our bodies, business also certainly has a number of risks of loss so it must be protected so that it can continue to run smoothly and develop.
Therefore, here insurance also has a big role to help minimize the losses that may be caused.
So, what are the benefits of insurance for business? First, with insurance, the business you run has a solid foundation. If a business already has a solid foundation, it is likely that the business will be even stronger.
If this is the case, you as a business owner can be bolder in trying to develop new innovations to develop business scale because there is insurance that can anticipate various risks that may arise.
In addition, insurance also provides other benefits in the form of protection for business assets such as property and human resources. Because, if there is a loss later, this loss will be transferred and borne by the insurer (insurance company).
That way, the company’s cash flow is not disrupted by unexpected expenses.
Another important benefit is that insurance can provide coverage for loss of company income within a certain period of time, due to not being able to operate normally due to natural disasters, fires, and others.
So, even though the business is forced to stop temporarily and automatically does not receive a profit, there is an insurer who will compensate the loss to the business owner.
Also Read: What is Business Savings and the Best Recommendations, Business People Must Know!
Types of business insurance
Just like health insurance, life insurance and others which are divided into several different types of products, insurance for business purposes is the same.
In Indonesia alone, there are at least four types of business insurance offered by various insurance companies with different benefits. Here is the full discussion.
1. Property insurance
Property insurance is a protection product that provides coverage for properties such as residential houses, apartments, shop houses, to business premises from various risks of damage, theft and fire.
This type of insurance also generally includes protection for equipment, furniture, signage, and inventory items.
However, property insurance does not provide coverage for losses caused by natural disasters such as floods and earthquakes.
2. Legal liability insurance
Launching from the OJK official website, legal liability insurance is an insurance in which the insurer will pay compensation for a certain amount of value, because the insured is legally required to pay for financial losses suffered by someone (a third party) due to negligence committed by the insured.
For example, your business logo turns out to be similar to a competing company that was already present, so you will receive criminal sanctions in the form of fines.
So, with this legal liability insurance, you don’t need to spend money to pay the fine because the insurance company will cover it.
This type of insurance is of course very important to protect your business from the risk of financial loss due to lawsuits from third parties.
3. Workers’ compensation insurance
Workers’ compensation insurance is a type of business insurance that will provide salary reimbursement and medical benefits for employees who have an accident while carrying out work duties.
This type of insurance will later provide protection to employees which includes medical care, disability and death benefits.
That way, the company does not need to spend money to compensate workers who may potentially disrupt the company’s cash flow .
4. Business interruption insurance
Business interruption insurance is a type of insurance product that will provide insurance against loss of profits or income that may be obtained, as a result of fire, natural disasters, and others experienced by the company.
So, when the business you are running is suddenly hampered by its operational activities because it is being hit by a disaster such as a fire until the value causes loss of income for a certain time, then business interruption insurance will compensate you for the business interruption.
SMEs focus on developing business
So, do you know how much insurance benefits for smooth business? That way, business actors can focus more on developing their business and attracting more potential customers.
However, developing a business scale to a higher level is certainly not an easy task because there will be many obstacles that must be overcome, including one of the problems of funding.
Even so, this problem does not mean that there is no solution because you can cooperate with Pintek as a funding solution for your business, especially businesses in the education sector.
Pintek is a fintech company for education that has a mission to encourage the transformation of education in Indonesia through financial services.
Through the PO/Invoice Funding product , businesses in the education sector can get funding of up to billions of rupiah with a tenor of up to 24 months. In addition, the interest charged is also competitive starting from 0.9% to 2.5% depending on credit scoring.
To get funding at Pintek through PO/Invoice products, education vendors only need to guarantee an invoice or an ongoing bill. The funds can be used to fulfill school orders such as the procurement of laptops, books, and others.
