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Introduction Insurance is a fundamental element in safeguarding business from uncertainties and risks. It is a safety net that gives appropriate financial protection as well as peace of mind to business owners. Insurance is imperative in protecting businesses and this essay will emphasis on the significance of insurance in protecting businesses where it elaborates by pointing out that insurance helps mitigate potential loses, ensures consistent business continuation, increases trust to the customers, promotes credibility which is good for a business and promotes long term growth. Insurance as a tool which mitigated potential loses. Insurance is very important in mitigating potential loses that business may get into. This is by transferring risks to insurer. Insurance helps the business pay when affected by an unexpected event, for example a fire in a building will be covered by property insurance while liability insurance pays when a third party get injured in your premises. Ensuring lengthy business continuation. Insurance play an important role in ensuring business continuity in the occurrence of unexpected losses it helps avoid stress and worries. Insurance helps continue with business in the event of something happening to it. Insurance pays for the business for loses from fire, cyber-attack and immediately pays for all loses of the company and it helps it be on its previous position. Insurance increases the trust to the customer. Insurance helps increase and build trust with customers. When the business is insured, it means that the customers are protected. To give an example to this point can be if a customer purchased something from your business and it was of poor quality and it had damages, the client will be confident to approach incase it had insurance. If it never had insurance, it will be difficult for that client to trust your business once again. Insurance promotes credibility of a business. Insurance helps in appealing to different people. Insurance also helps the business to be good with its credibility. Clients feel secure in dealing with a business which is insured. That’s because to most people the first thing they checked before they come to your business is incase you have insurance. Promotion of long term growth. Insurance is always important in ensuring long-term sustainability. Insurance has enabled business to compete by reducing impact of loses. Insurance pulls organizations to move to other places and it also insures all of its assets and the business activities outside the home country. They also insure for cases of legal issues. Conclusion Insurance is a very important thing that is supposed to be there in a business without insurance businesses can never go on well without insurance hence, most owners of these businesses should know the exact insurance needed to have in their particular business.
