Complicated insurance. It's not like buying chairs or shirts or food ingredients. When you buy insurance, you buy an appointment. This is a promise that if something disaster occurs in your business, your operator will help you make your business back again. Sometimes, it's tempting to question the insurance value because it is an intangible product.

Let's back up and take a big view of why insurance problems. Here are seven reasons why insurance is important. What else will you add?


1.) Insurance Making Moving Trade

In the days after the 9/11 attacks, there were many concerns about insurance coverage. The story of the war is not covered by insurance. Do terrorism of a war action? The big question is, how will 9/11 attacks be classified? Fortunately, the insurance industry decided the attack was not a war action.


However, after 9/11, several insurance companies began to exclude terrorism. But the federal government stepped and needed coverage on behalf of trade transfer. In this case, insurance may prevent many businesses from avoiding operations targeted by terrorists, such as refineries and chemical transporters.


2.) Lenders need insurance

This reason is related to No. 1. Lenders require you to have insurance. Think about it: mortgage lenders want insurance proof before you buy or build a new building. In short, to get the money needed by your business to continue, chances are you enjoyed the benefits of insurance. Without insurance, your victory business model cannot get the funds needed to take the first step, or your established business model cannot get funds to evolve and compete better.


3.) Mandatory insurance in several countries

Important insurance because sometimes the law is! A great example of this is car insurance. Car insurance is mandatory in Wisconsin (HNI HQ house). Car insurance helps reduce the risk of life on the road (there are many!). Workers' compensation is a form of compulsory insurance needed in most states.


4.) Insurance grants peace of mind

Insurance, intangible, provide intangible: peace of mind. Business owners can take certain business ventures because they can shift risks - thanks to insurance. This reason is partner up to 2 - lenders need insurance. Insurance is a necessary safety net (by lenders) that allow employers to explore opportunities.


5.) Insurance ensures family and business stability

Insurance is a safety net for the wrong risk. Life insurance can support family life, if a member is lost. This is similar for business. If a key member or equipment out of the commission, businesses can continue, thanks to insurance. This reason why insurance is important loveils calmly (No. 4). Everything returns to the idea that insurance, when activated, makes the policy holder back again.


6.) Insurance protects small people

When you see your industry, you see "big people" and "little guy". If a risk is wrong, big people will be able to survive. They can be hit. But small people can't hit. As a result, they reject risk, and in some cases, they sell to big people. If a small guy is enough to leave the industry (and one big man swallows them), you go with a monopoly. However, with insurance, small people have support if they want to take risks, which means they last longer. What happens is that insurance helps prevent monopoly formed.


7.) Insurance is the right thing to do

Serious examples of insurance in action are Western Fertilizer explosions in Texas this spring. The explosion damaged $ 100 million in the community, including schools and hospitals. Fertilizer companies only have $ 1 million in general accountability coverage.


Now the city demands Western fertilizer and is likely to win all the property and assets of the remaining companies that are not damaged by disasters. This is because fertilizer companies do not have sufficient insurance. Moreover, this city also sued suppliers on fertilizer plants, claiming they knew they were supplying hazardous ingredients inherently. In Western cases, Texas, plant explosions, insurance can help the community to recover after the crisis.