Business Venture 2017: Types of Insurance a Small Business Must Have
The country’s economic backbone are small businesses which are handled by traders, retailers and merchants, but sad to say that 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 various types of business insurance and business owners can consider are workers compensation, trade credit insurance, professional liability insurance, general liability insurance, property insurance, business owner’s policy, commercial auto 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 a type of insurance product and at the same time a risk management product that is offered by private insurance companies, and government export credit agencies, also considered as casualty and property insurance. 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 for the growth, development and success of your business. The nature of trade credit insurance policy enables business entrepreneurs to approve credit limits faster, get more working capital, customer experience is enhanced and assurance that your receivables are insured. Trade credit insurance has a major impact 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 business disruptions and conflicts.
Protect your business as early as now, because as a business owner, it is your responsibility 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.
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