Insurance refers to a cover taken to protect an individual or organization from unforeseen risk. In an event, the risk covers occurs, the insurance company will investigate and will compensate the insured. The following are benefits of having insurance cover;
- Requirement by law
Some business are required by law to take an insurance cover before they are licensed to operate. The government may come with such measures to protect the employees, especially for very risky jobs.
- Returning one to the former financial position.
Taking an insurance cover ensures in case you suffer the loss you are compensated. This ensures that you are in a position to restore your financial status before the risk occurred. This is a great move to avoid incurring losses and losing everything you had invested.
- Spreading of risk
Where there are high chances of a risk occurring an individual or organization can take an insurance cover to avoid incurring of all the losses. In case the risk occurs, the insurance company will compensate the insured as the policy is stated.
- Requirement by lenders
Some lenders don’t take chances when it comes to offering loans to borrowers. Businesses are risky, and having an insurance cover is an added advantage since they are sure you can repay their debt.
- Protection from unexpected expenses
Risky is very uncertain; they can occur anytime and mostly when least expected.it is in this regard that having an insurance cover will save you from unbudgeted expenses to cover the losses likely to happen. (https://www.myrepartnere.no/bedriftsforsikring/)
- Encourages savings
some of the insurance policies are channels of saving money to the insured. Endowment insurance policy is an excellent example of a saving plan insurance; in case the assured doesn’t die, then he/she is refunded some money back. (https://www.myrepartnere.no/nemi-forsikring/)
Insurance can be classified under two main levels;
This is kind of insurance which cover personal life; in case of death, the beneficiaries are compensated for the loss. Life insurance can be further classified as whole life assurance,statutory scheme, term insurance, endowment insurance, to mention but a few. (myrepartnere.no)
This is an insurance that covers damage or loss of the property. Some of the insurance that falls under this category include motor vehicle insurance, fire insurance, personal accident cover, bad debt cover, workmen’s compensation cover and marine insurance.
Taking an insurance cover is the secret to avoiding incurring losses to your business as well as having a peace of mind for life insurance.