Insurance business are auxiliary business which help other businesses all over the world to operate smoothly. A smart risk taker in business, should insure his/her business so as to avoid losses if they certainly occur. Insurance companies therefore spread risks to all the entrepreneurs who need to insure their business’s equipment’s and assets.
For one to insure hi/her assets, there are policies or principles that he/she need to follow. This principles which include; indemnity, proximate cause, doctrine of utmost faith, contribution among others, are applied so that the insurance companies can prove that the items are for the business.
The advantages of business insurances to the entrepreneurs
- The insurance businesses help in spreading the risks to entrepreneurs- the insurance company collects the premiums of entrepreneurs and arranges them in pools which have business persons with similar risks together. The entrepreneur therefore , after payment of the premium, takes a risk of which he/she does not know whether the risk occur for him/her to be compensated, but also its not his wish for the same to occur. Insurance business help in spreading of risks to many.
- The insurance company also helps in providing safety or security to entrepreneurs assets-once the items have been insured, then the entrepreneur doesn’t have to worry of the security of the items since his items have been secured by the Insurance business. If the secured items are involved in the insured risks, then no doubt he/she will be paid back. The insurance business are therefore for the business since they provide safety for the entrepreneur’s assets.
- The insurance businesses are also for entrepreneurs since they ensure growth of the businesses owned by entrepreneurs. Once the risk has occurred the business is compensated, therefore ensuring that the business grows since it is secure. This is because, once the item was insured successfully, the business will be compensated out rightly and as usual all its activities will go on smoothly, leading to success to the entrepreneur.
- The property of the business is covered by the insurance company, therefore helping the entrepreneur not to suffer losses after the risk has occurred. Insurance businesses are for the entrepreneur since they help in coverage of the business property. This is such that the insurance business compensates the business person for such risks. The company also helps in the return of the business owned by the entrepreneur to its previous position before the risk occurred. This is the principle of indemnity. Once the risk occurs, the insurance company helps in returning the business to its previous position. This is an advantage to the entrepreneur since he cannot easily suffer the losses of the risks insured.
- The insurance companies also offer insurance advisory services to entrepreneurs-The business person can be advised by the company since most insurance companies offer advisory services If one is faced by some problems, he/she can be freely advised by the actuaries and other workers in the insurance business.
The insurance businesses therefore, help entrepreneurs a lot as they help a lot in ensuring the smooth running of the business and also in the provision of security to business items. For the businesses to be insured in most countries one should have the ni number which acts as a door opener for one to be insured. In most countries, the Ni number serves as a personal account number. Once one issues the insurance company with the national insurance number, then it is a clear indication that the government has allowed the individual to be insured.