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Is business insurance really necessary? Well, it’s called business, there must be a risk, right? Courage of risk is one of the most important aspects of business. However, there are risks that can cause harm. However, this risk can be controlled by business insurance. Qoala today will share the protection that the business owners should consider regardless of business size.
The Main Objective of Business Insurance
In Malaysia, the number of start up businesses shows a trend of improvement. Although many have ventured into business, not many people know about business insurance and why it is important to the company. In addition to yourself, family, car and home, your business also needs insurance coverage. It is a pity that the business we build from our own sweat points, and night developing a business, can disappear in the blink of an eye because of an unexpected event. Losing profit is a custom in business. However, the huge loss here is the time loss we have invested in building a business. Some have eaten for years to stabilize their business and fragile for lack of protection.
Many entrepreneurs especially from the Start Up business do not care about the risks that their companies may face. For example, risks of disasters such as floods or storms, accidents such as fires that can make business owners turn their eyes away after everything is passed. The main objective of obtaining business protection is to ensure that the disaster or suspicion that does not cause the business is closed as a whole and compensation from insurance can be used to rebuild the business after the disaster.
Reasons Why Business Owners Need Insurance
A smart business owner is sure to ensure that the company has a business-specific bank account and also ensures that its company is covered by business insurance from unwanted incidents. Is he the unwanted incident? Below is a list of reasons why business owners need to have insurance coverage to protect the business:
Protects the Company From Natural Disasters
Among the natural disasters that often hit the country consistently are floods. Do not remember that only state-of-the-art floods such as the worst floods that occur on the east coast of the country. Major cities such as Kuala Lumpur can also be exposed to flash floods. If you have a company in high-risk locations for flooding, is there enough to save on repair costs?
The floods that come not only bring water. It also carries all kinds of impurities such as blankets and mud. Flood -hit offices certainly require cleaning costs. What about all electronic tools? Most businesses now use IMAC, MacBook and many other expensive electronic tools. Certainly these electronic devices will be destroyed and damaged when watered. This has not been a story about product stocks, office furniture items, important files that have also been destroyed by floods.
This is a new flood, no storm, landslides, or earthquakes. Plus, if your business area is an area of natural disasters. This is where the important role has protection insurance. It aims to protect the company’s property. The compensation received can help the business owner to rise faster in repairing and rebuilding the business.
Protects the Company From Fire
Imagine you as a business owner suddenly get a call in the middle of the night notification that your company is on fire? It can be speechless. Well, we have to wonder how to recover if all existing capital has been invested to buy trading stock. If you have a company savings, you can use it. But what if there is no company savings?
A variety of things that can cause fire. The fire can be due to shortcut and more. The burning fire can destroy all property in the blink of an eye. When a business has insurance coverage, compensation from insurance can help minimize the damage and loss.
Protects the Company From a Case of Breaking In
A forced situation can cause some individuals to commit crimes such as stealing or breaking in. This is because of the urge to go through. The incident of a broken office was also no less than great. Property thefts such as electronic tools such as computers, smartphones, mobile computers and even cash can expose businesses at high risk. Without insurance, we have to use the company’s savings to recover. But what if the company has no savings?
With business insurance, claims can be made in the event of an unwanted incident. It’s not like we’re in a bad mood to think about how to recover, right?
Provide Protection From Accidents and Disability
To your knowledge, company employees are business assets as well. That’s why we have to provide protection for them. This is because staff can also be at risk for accidents at work and they are also at high risk for illness and need high medical treatment. The absence of staff can hinder our business operations.
Not only that, by providing an insurance protection plan for staff, the staff can be more motivated to work better because of the employer’s appreciation.
Provides Peace of Mind
Being a business owner is not an easy thing. There are many things to look forward to. In terms of staff management, renewing products, finance, investment and more. Everything needs to be thought. With business insurance, it can provide and create a sense of calm in a business owner. This is because, now the business owner is aware that the company is covering insurance in the event of a unwanted thing and can stifle the company’s progress. Company management can also be smooth.
Delivery of Goods Delayed
Business owners are eligible to receive up to RM2, 000 in the event of delays in delivery of goods from suppliers more than 24 hours caused by vehicle accidents. This situation can be seen as an egg supplier truck that was supposed to arrive at the business location at 5am but was delayed due to the truck with an accident such as losing control due to a slippery road. If the company owner does not have any insurance, a large loss may occur. After all, the product is unable, money has been wasted and business operations cannot happen properly. By having insurance, at least it can ease the burden and minimize the losses you have. It is not like the saying goes, as if falling down the stairs.
Protection From Contagious Diseases
The world is now full of infectious diseases. Anyone can be infected with infectious diseases including the owner of the company and its employees. When company owners and staff fall ill, the company’s performance can be affected. This is because business operations cannot happen as usual. With insurance, it can protect itself in terms of cost when admitted to the hospital and the recovery of any disease classified as an outbreak or pandemic by the World Health Organization (WHO).
Worker’s Loyalty Guarantee
Every company wants employee loyalty. It is an expensive value. Employee loyalty can be evaluated when employees are not sabotaged by fraudulent. However, this incident can happen. Of course, it loses the company. However, with business insurance coverage, the owner of the company can apply for the loss of the ringgit or property caused by the employee.
Data Invasion
Remember, data is one of the company’s assets. Data is also a privacy. The world is growing, and as most businesses depend on technology, the risk of hacking becomes the number one concern. Most businesses also do not have a strong cyber security system. As a result, they are exposed to cases of data invasion, ransomware and various other cyber attacks.
Types of Business Insurance
There are various types of business insurance that every entrepreneur no matter the entrepreneur with a large or small -scale company needs to be considered. Here is a list of types of insurance that can protect the business:
Property Insurance
Business Property Insurance Policy serves as a protector of property in business. Business owners may claim damages in the event of losses in terms of property. This policy protects office furniture, computers, business inventories and other items that can impede the company’s movement if the goods are not available. There are various property insurance policies that also provide expenses to protect the business from damage and losses as a result of unwanted incidents such as the fire and the money needed to continue operating the business until the damage from the loss is repaired.
Liability Insurance
As an owner business, we are exposed to any allegations in particular the allegations made by consumers if the product or business service harms consumers. For example, you are a business owner who produces food products, if a buyer of the food product falls ill as food poisoning after consuming the food product, the business owner may use this liability insurance to pay damages and can also be used for legal costs if the owner sued. This policy can also help business owners pay for the medical costs of consumers.
Commercial Auto Insurance
Some companies have their own vehicles used for business. Any vehicle used for business purposes may be covered with commercial auto insurance protection plans. Any unexpected incidents may interfere with business operations. This commercial auto insurance plan can protect business commercial vehicles in the event of accidents, fire damage or theft as well as protection for death, injury or third -party property damage caused by the company’s commercial vehicles.
Employee Compensation Insurance
Employee Compensation Insurance can provide protection to employers when any compensation must be paid under the Labor Law in Malaysia. This compensation should be paid if the employee suffered an injury caused by an accident or illness from or at work with the employer. If the employee dies, the benefits of compensation will be given to the employee’s family. However, this policy has several exceptions. It does not protect some losses such as any injury as a result of rioting as well as any staff who are not considered employees under state law.
Professional Liability Insurance
If a professional service business such as a professional consultant, making suggestions, designing a product, and so on, the company can be charged if it is found to provide incorrect consultants or advice and cause harm to others. The company is exposed to the risk of being sued. This legal action can take time and pressure. Professional liability insurance policies can help relieve this burden in the event of this. Whether the advisor is legally responsible or not, insurance will offset the cost of responding to legal claims.
Business Harassment Insurance
It is the responsibility of a business owner to maintain and increase business profits. This is where the role of business interruption insurance. Business interruption insurance is often found as a protection including business owners, commercial package policies, or commercial property insurance policies designed to pay for business expenses when business operations have to be temporarily halted due to property damage caused by unexpected events. Business interruption insurance pays for matters such as loss of income, rent and utility, moving to temporary location, additional expenses (advertising, side-effects related to repairs, advertising, resettlement, expenses (salaries, rent, health insurance, and more- other). However, there are some unprotected exceptions and require business owners to increase protection to policies such as earthquakes, thefts, vandalism, glass damage, utility disorders, and so on.
Transport of Hazardous Liability Insurance (HAZMAT)
This hazmat insurance covers the transportation of hazardous materials by trucks, airplanes, boats or train. This policy includes liabilities to load / unloading cargo, transit coverage, site pollution cleaning and continuous pollution caused by harmful spills. Hazmat insurance is a legal requirement for the carrier of hazardous materials.
Data Breach Insurance
Data theft is no longer the thing we rarely hear. In fact, hackers now have a special team with technical strategies to steal and hack the customer data we have. For those who do not know, consumer data is a company asset. The owner of the company is recommended to have data infringement insurance to protect against legal liability.
Having a business is a very amazing thing. However, his business also comes with risks that we cannot avoid. Not because of these risks, it stifles your dream of having a dream business. These risks can be controlled by business insurance ownership.
Regardless of human, technical or finance, business owners can identify and expect risks when planning business. Identify risks that can stop, slow down or affect your business profits.
As a business owner, we understand that the day you must be busy with managing the company’s needs for the growth of the company to a success. But take some time to add protection to the company. Because it will have a good effect in the long run.
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