What are the advantages of insuring our liability?

Richee84

Active member
Incorrect Sentence Format
One very good part of insuring our liabilities is to keep us off debt from all our creditors. Most business usually have their assets and liabilities, this two are component parts of every business. Insuring of company or business asset is common among business owners or entrepreneurs, assets of a company include; the company buildings, the company vehicle, company land and so on. Fixed Asset are mostly tangible in nature while current assets include company stocks, company cash e.t.c. All this asset can be insured against unforeseen circumstances that may happen to the company asset. Liabilities on the other hand referred to what the company or business is owing to it creditors in the cause of doing business. People hardly go into insuring their liabilities against future occurrence and this is due to the fact that most people are not aware that they can also insure their liabilities just the way they insure their assets and other properties. There are many benefit attached to insuring our business or company liabilities against future occurrence. When a company run into huge debt that the company is unable to pay it debt from it company profit, if the company has an insurance policy that covers it liabilities, it will be very easy to clear such debts without going out to borrowed.
 

Holicent

VIP Contributor
The advantages of insurance are numerous and varied. The advantages of insuring our liability are numerous. First, it keeps us from being held liable for something we don't intend to do. Second, it helps protect the company from legal costs incurred by the injured parties. Third, it allows us to make a claim against the insurance company if our liability is found to be less than the amount we paid out. Not only does the insured benefit from coverage, but the insurer benefits from finding that risk and insuring it. Insurance provides protection against financial loss, which can result from a number of different events.

There are many reasons why people purchase auto insurance policies and some of them are as follows:

To cover the cost of repairs to your vehicle should an accident occur.

To pay for medical expenses if you are injured in an accident.

To reimburse you for any expenses you may have incurred due to an accident or other loss.

To pay your compensation award if you are found at fault in an accident.

To provide additional protection if another driver is found at fault in an accident with your vehicle.
 

King bell

VIP Contributor
There are many benefits to purchasing liability insurance, including financial protection in the event of a lawsuit, peace of mind, and the ability to take on higher-risk projects.

Liability insurance can be vital for businesses of all sizes. If you are sued, the costs of a legal defense can be very high, and if you are found liable, the damages can be even higher. If you have insurance, the insurer will usually provide a lawyer to defend you and will pay any damages that are awarded to the plaintiff. This can save your business a lot of money, and it can also protect your personal assets from being seized to pay for damages.

Another benefit of liability insurance is that it can give you peace of mind. If you are worried about being sued, liability insurance can help ease your anxiety. It can also help you sleep better at night knowing that you are protected against potential legal claims.

Finally, liability insurance can allow you to take on higher-risk projects. If you are self-employed or run a small business, you may not have the resources to defend yourself in court if you are sued. But if you have liability insurance, you will not have to worry about this. You can take on projects that may be more risky than you would otherwise be able to do, and you will not have to worry about the financial consequences if something goes wrong.
 
Top