What is Asset Insurance?
As is the case of most business owners, you must have also come across this fact that generating profits might be simpler than getting your assets protected against any future accident or damage. It is because of these assets that your company manages to earn profit hence it becomes inevitable to protect them through insurance.
If you company asset gets destroyed in a mishap, it will be very hard for you to continue your production which may result in heavy financial losses to your company bearing long term implications.
Asset insurance covers all your assets against sudden and accidental damage. If they can be repaired, the company will cover the cost of repairing and if they are un-repairable then the insurer will replace the same.
It will be defined in the policy document which assets it will cover which can include buildings, service facilities, walls, gates etc as well as exclusions.
Importance of Asset Insurance:
- Tangible assets possessed by any enterprise carry a certain economic value.
- Some entities find it difficult and some find it next to impossible to operate without their key business assets.
- Losing the important assets means losing the base and dolling out a large sum to establish it once again.
- Therefore it is imperative that every company has a support system or the way out to replace the assets in case of any unforeseen contingency.
- One of the ways to protect the assets of the company is procuring corporate asset insurance.
- There are various asset insurance schemes that are designed to provide protection to business assets like building, plants and machinery, tools, stock and other objects required for the operation.
- The business owner or the stakeholder needs to recognize the important tools of the entity and buy asset insurance which meets his requirements.
How asset insurance can help you?
Asset insurance enables smooth functioning of the business by providing it the much-needed coverage against unforeseen risks.
Whether small, medium or large, capital invested in building or buying assets is huge.
Unfortunate events and crisis striking the enterprise may lead it to a substantial loss.
Moreover, outstanding liabilities, mortgage bills and other obligations towards the vendors can bring the company to the stage of a halt.
Acquiring asset insurance ensures:
- Protection against the risk of assets' breakdown, damage or its theft and carrying on with the business
- Protection against the risk of loss of income in unfortunate events like fires, explosions, floods or lightning that lead to complete or partial shutdown of your operations
- Protection against the lawsuits and related claims
Buying asset insurance is a relatively less popular concept, however, with time, business owners are realizing its critical importance and treating it more of as an investment rather than expenditure.
If you are one of those business owners, do check what all assets you must cover to keep your business healthy and protected against asset-related risks.
Naval Goel is the CEO and the Founder of PolicyX.com