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Insurance may be defined as “an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.”

Please Call Us At 407-344-1228, Or Email Us At [email protected] For Any Insurance Needs You May Have. Free Consultation.

There are many different types of insurance plans and policies that can offer monetary help, as and when needed. Each policy is specific to a given situation. For instance, life insurance will effectively insure that your loved ones will acquire a substantial sum of money at the time of your demise. This will help them to maintain the lifestyle that you had provided for them. Vehicle insurance will allow you to repair your vehicle or even procure a new one (as per the terms and conditions of your specific automobile insurance plan) in case you lose your car, or is damaged in an accident. Similarly fire insurance will compensate you in case of a fire and so forth.

  • What is Business Insurance?

The term “business insurance” generally denotes financial protection against any operational losses incurred by your business. The kind of operations that may be covered and  up to what extent depend upon the the specific insurance contract or plan. There any many reasons why you need to get business insurance coverage for your small or medium enterprise. Let us take a look at a few of these reasons:

  • Protection from Liability

Even if you have the best clients and customers in the world and you are firmly convinced that they will never sue you, you will still not be able to protect yourself from third party litigation.

  • Example

XYZ Corp. makes automobiles. One of their cars crashed and the driver was injured. He filed a million-dollar lawsuit against XYZ. In order to mitigate their liability, they were forced to sue you in return because you provided some of the components for their vehicles.

They may have to rope you in even if they know for a fact that you are not at fault. This is because of the cause and effect nature of a lawsuit. XYZ may have no problems with using your components in their cars, but they will nonetheless state otherwise in order to successfully eliminate their own liability.  Or they may have no other legal option to opt for. In any case, you will have to engage a legal team and contest the suit. This way, you will have to pay a hefty fee that you had never actually vectored into your business plan. But if your business is protected by liability business insurance, then you may not have much to worry about. Always remember that even though you cannot stop people from filing lawsuits, business insurance in St. Cloud, FL, can protect you against massive legal expenses.

  • Substantial Investments and Assets

Most business organizations require a lot of infrastructure in order to sustain themselves. A manufacturing concern will have large factories and plants, a photo studio will have plenty of electronic equipment and a gaming arcade will be equipped with sophisticated computer systems. Rather than insuring everything with a different insurance plan, it would be a better idea to opt for business insurance in St. Cloud, FL, at a holistic level, i.e., opt for one insurance policy that can cover everything.

Such an all-encompassing business insurance policy will give you a level of enhanced protection that few personal insurance policies can offer. In fact, this policy will protect all the assets (both fixed and liquid) of your business enterprise in case of accidental damage, theft, or any natural disaster. Duly armed with such a policy, you will easily be able to replace or repair your tangible assets in a timely manner so that your productivity remains uncompromised.

  • You Have Contractual Obligations

Many small business owners are convinced that their contracts are rock solid and there will be no need to go to the courts to get them validated. Unfortunately, that is not the case and even trustworthy clients have been known to welsh on their contractual obligations.  Unfortunately, even simple arbitration can be a really costly affair in terms of legal representation and advice.

While the contract document is the single most common means of fulfilling expectations amongst multiple parties, it is not foolproof and comes with its own plethora of problems and issues. Various complications may occur when you least expect them to; and lawsuits may become an unavoidable reality. However, business insurance in St. Cloud, FL, will ensure that you don’t have to lose any money in the legal process, regardless of the litigation’s outcome.

  • Employee Dependence

Once your business grows and you hire more employees, your responsibilities will increase manifold.  In fact, there are multiple types of business insurance in St. Cloud, FL, that your firm is legally obligated to obtain on behalf of your employees. For example, most states in the US mandate workers’ compensation insurance in case your employees are injured during the execution of their duties. Then there is health insurance coverage that you have to provide to your employees. Apart from that, you will also have to provide them with liability insurance in order to remove any financial burden from your company.

  • Example

An Uber driver crashes a car and the passenger is injured.  Subsequent investigations showed that he was driving under the influence. But the mere fact that he was Uber’s driver made the company liable for any damages. Here ‘employee liability insurance’ would cover Uber from any damages that may come about because of the lawsuit.

  • You May Need ‘Key Person Insurance’ Coverage

Suppose your company is almost totally dependent upon the expertise of a small number of experts. Your business will heavily suffer in case they are injured, fall sick, or are unable to work for a certain period of time. Under the circumstances, ‘Key Person/s insurance’ is a form of business insurance in St. Cloud, FL, that will protect your business from financial losses till the key individual/s recover or are replaced.

  • Business Insurance in St. Cloud, FL, Will Help to Safeguard your Human Assets

Suppose you own a sole proprietorship. The business is working perfectly. However, being the sole owner means that you have the ultimate responsibility for the day to day running of the business. But what if you were to suffer a stroke or a heart attack or are unable to take care of your business for an extended period of time?

Here your business insurance policy will come to the rescue, provided that you have purchased a ‘company-owned life and disability insurance coverage’ policy. This policy will provide monthly payments (or a lump sum amount as per policy stipulations) to cover the loss of income that you had been generating from your self-owned business.

If you are a partner in a firm, then in the event of your demise, the policy will allow your next of kin to purchase your shares from your partners under a ‘buy-sell’ agreement.

  • Attracting and Retaining Highly Productive Employees

The modern employee looks for more than a simple salary package when he joins an organization. This is the part where business insurance in St. Cloud, FL, comes into the picture. Contrary to popular opinion, insurance is not only used for emergency, doom and gloom situations. Rather, it is also a potent recruitment tool. Your staff members will be interested in health care insurance, liability insurance and long-term care plans. If you don’t offer them these benefits, they might join a company that does.

  • Leads to a Significant Reduction in Business Risk

The old adage ‘an ounce of prevention is worth a pound of cure’ holds as true today as it did before, especially with regard to business insurance in St. Cloud, FL. It is very simple really. Regardless of how many precautions you take, there is no remedy for ‘Murphy’s Law’ and things can and will, go wrong. It is just a matter of time when they start spiraling out of control. This is no exaggeration as can be seen from the following example

  • The Kodak Example

The camera equipment maker Kodak used to have the highest amount of market share in its chosen target market. However, Kodak failed to keep up with the trends, and as the world switched to digital photography (a Kodak invention), Kodak stubbornly refused to shift from their traditional analog cameras. To make matters worse, they did not have an insurance cushion to manage their business losses. The inevitable result was complete bankruptcy. 

It did not have to be this way at all. They could have divested or surged back into the digital camera market that they had created in the first place. Unfortunately, without adequate business insurance coverage, they did not have the capital to undertake any large-scale diversifications in their product portfolio. 

  • Most Investors and Bankers Prefer to Work with Insured Businesses

If your business venture had panned out successfully, you might be interested in further expansion. However, an un-insured business may not be able to secure that coveted loan or financial backing that you so urgently need. And even if you manage to secure that loan, the interest rates may be so high that you may not be interested in pursuing the matter.

Most financial institutions and even venture capitalists are more interested in protecting their investment than in simply giving a helping hand. If your business were to go up in smoke (for instance), they will lose everything they put into it. This is why they would prefer to work with a company that provides them an element of financial security.

Here, business insurance in St Cloud, FL, is an established and time-honored way of managing financial risk. Furthermore, it also demonstrates to your lenders and investors that you value protecting their investment.

  • It Ensures Complete Peace of Mind

Some areas are prone to natural disasters such as tornadoes and hurricanes, while others sit on major fault lines that may be regularly hit by major earthquakes. We only need to look at the tragic example of the 9/11 attacks to see that disaster can strike just about anyone, anytime and anywhere.

If such a calamity were to hit your business, wishful thinking and ‘what ifs’ will not get you anywhere. But a real business insurance coverage plan will definitely help you pick up the pieces, regardless of how horrific the damage may have been. Ultimately, you have to realize that irrespective of how careful and prudent you may be, there are certain things that you can’t control. But if you have a comprehensive business insurance plan, then you can minimize the damage that such factors can cause. 

  • Conclusion

No small business owner has a crystal ball stashed away that will inform him about any lurking danger. In theory, it would be wonderful if we lived in a world where there would never be criminal attacks or terrorist outrages, or natural disasters. But in the real world, such things are possible and occur when we least expect them.

Insurance protection is the only viable defense we have against these dangers that we have to face on a daily basis. This is why it would not be wrong to state that acquiring business insurance in St Cloud, FL, is not just the best option, but also the ‘only’ option we have to protect our businesses from the uncertainties of life.

Please Call Us At 407-344-1228, Or Email Us At [email protected] For Any Insurance Needs You May Have. Free Consultation.

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