Financial advisers will tell you that one of the best ways to invest your money is to put up a viable and sustainable business. Putting up a business establishment means there is constant supply of income on the side of the businessman and demand for employment on the side of the public. But perhaps the most neglected aspect of business is the insurance part of its operation.

Why bother to get insured?
Insurance is one contract that business establishments should seriously consider of signing. Insurance is a security against unforeseen risks related to the operations of the business. Generally, under the contract of insurance, the insurance company will provide a list of risks that could potentially cause financial loss to the businessman. These risks are pre-determined and usually related to the operations of the business. If any of these risks is incurred by the business, the insurance company will compensate the beneficiary against any damage or loss.

How does the business insurance operate?
When we speak of a contract of insurance, there are 3 parties involved here. The insurer, which is the insurance company; the insured, which is the entity or person paying the premium; and person or entity covered by the contract of insurance; the beneficiary, to whom the payment is made by the insurance company. The insured pays the insurance company premium in exchange of its obligation of covering the risks. In illustration, if a customer of a car rental company meets an accident because of the faulty breaks of the rented car (customer being the beneficiary), the insurance company will pay the hospital expenses or other medical expenses of the customer (insurance company being the insurer); as a result, the car rental company (the insured) is free of any obligation towards the beneficiary.

What are the business risks covered by the insurance?
There are a lot of risks that can be covered by a contract of insurance; this will depend on the type of business the would-be insured is engaged to. General risks include accidents, machine explosions, travel injuries, food poisoning, just to name a few.
For establishments involving healthcare, insurance is very important because healthcare business is one of the major industries that risks could happen unexpectedly. Insurance risks include but not limited to clinical negligence, medical malpractice, to name a few. Most victims of clinical negligence hire the services of patient lawyers because of their expertise in filing cases against or arriving at a settlement with healthcare providers. In most serious cases, like death or inappropriate administration of drugs, victims hire patient lawyers to demand compensation in the form of damages and unrealized income based on life expectancy against healthcare providers through cases filed in court or through arbitration proceedings. Thus, it's always important for businesses to secure a comprehensive insurance contract in order to provide for a security whenever these risks occur.

What are the benefits derived from insurance contracts?
The business owner can sleep well at night if he knows that he has paid for someone who can handle his obligations efficiently. Insurance contracts work as a buffer against claims filed against business owners. With an insurance coverage, the business owner can avoid having to go to courts in order to resist claims unceremoniously filed by lawyers and claimants alike.