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Business Venture 2017: Types of Insurance a Small Business Must Have

In very country, the economic backbone are small enterprises owned and managed by retailers, traders and merchants, but the sad truth is a large percentage of small business startups turn to be eventually a failure. What is the reason behind this trend? There are several reasons why low success rate of a small business occurs. 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.

Let us discuss in detail, trade credit insurance. A major percentage of your working capital if you are engaged in a business that is selling goods and services basing on credit terms, is probably tied up with accounts receivable, so trade credit insurance can help protect these accounts from losses as a result of credit risks such as bankruptcy, protracted default and insolvency. There are several term used for trade credit insurance such as trade credit insurance include insolvency insurance, debtor insurance, bad debt insurance, credit insurance, business credit insurance, export insurance, or trade indemnity insurance, but all of these just mean the same. 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 and concept of trade credit insurance policy enables businesses to approve credit limits faster, get more working capital, enhanced customer service and assurance that 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. Consider getting the appropriate insurance type for your business, because it is only you who can determine what type of insurance is best for your business.