Owning a Business: 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. What is the reason behind this trend? 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. 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. 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 considered as casualty and property insurance and at the same time a risk management product that is offered by private insurance companies, as well as government export credit agencies. 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 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.