Insurance is a critical part of the risk management system

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PostPosted: Sat Mar 27, 2010 5:13 am   Post subject: Insurance is a critical part of the risk management system  

Insurance is a critical part of the risk management system for a business. It is a way to protect yourself against unforeseen losses. An insurance policy is a legally binding contract with an insurer to provide compensation for a specified damage, loss, or injury suffered by you business in return for a sum of money (premium) paid.



Just as you don't want to drive without automobile insurance, you do not want to run a business without business insurance. However, because there are so many kinds of businesses and subsequent risks they may face, there are a wide variety of insurance types, not all of them necessary for every business. Insurance needs differ for each business so look at your risks and choose what is appropriate for your situation.



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