Potential bankruptcy is always a possibility for any business. All business aways have risks, including businesses with little capital. No one can guarantee that a business will last forever. What should be considered is to manage this risk to avoid any loss.
Business risks are diverse. Failure could be due to mismanagement, the wrong location, a stuttering economy, product costs/pricing too high, or defeated by competitors. The risk could also be out of your control. For example, natural disasters, fire, riots.
So that all risks are not borne by the business, you can shift the risk to the insurance company. What can be insured is not the business, but the business assets. For example, insuring a shop or a or a site against fire.
Sometimes some businesses consider insurance to be a waste of money. Premiums that must be paid each month are just another financial burden and erode profits. This assumption is wrong.
Insurance should be understood as a shield over the possible loss of business due to the occurrence of a risk asset. This could be due to natural disasters, fire, or other causes. If at a later date something like this happens and assets are lost, then the businesses cannot look for more capital through borrowing money without strict conditions.
Another case if the asset was insured, then the liability of the insurance money could be venture capital assistance. If necessary the sum can be used as a reserve fund to recover business as usual.
Prior to determining the value of the premium and the type of risk that need to be insured, it is better to calculate the earning potential of the business. Or you can also ask the help of the insurance officer to inform you about the type of insurance that is appropriate to the risk. With insurance, the potential losses due to unexpected incidents can be minimised.
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