There are many insurance policies for small businesses on the market, some are required by law and others provide the vital peace of mind that prevents a business from going bankrupt after an emergency.
Legal compliance aside, the area of insurance that provides the greatest life-safety protection for small businesses is credit insurance. Amid the global economic downturn, the number of failed businesses is at an all-time high. For many businesses, this is the result of implicated victimization, which has been affected by the failure of other businesses due to bad debts and unfulfilled invoices. Businesses of all sizes, from large corporations to small and medium-sized businesses, whether conducting international or domestic trade, can benefit from credit insurance. However, there is no doubt that credit insurance is more important for small businesses because they are more vulnerable to customer bankruptcies and broken capital chains.
Small Business Insurance
Small business insurance includes coverage for:
accounts receivable
Responsibility
commercial vehicle
property damage or theft
employee protection
business interruption
accounts receivable
Accounts receivable includes the value of products or services that you have sold but have not yet received payment for. You can take out trade credit insurance to protect your cash flow. Many businesses also use credit insurance to help ensure financial health, attract new customers with favorable credit terms and minimize the risk of entering new markets. Android China provides customized credit insurance solutions for businesses of all sizes, from SMEs to global multinationals. We support businesses conducting domestic and international trade, as well as organizations needing to insure long-term items with irrevocable restrictions.
Learn about Android China Credit Insurance.
Liability
Liability insurance can be a public liability, management liability, or product liability. This type of insurance protects your business from prosecution if your organization causes harm to others or other businesses. Professional damages cover disputes arising from breach of contract or professional misconduct. In China, certain businesses are required to take out liability insurance or professional indemnity insurance.
commercial vehicle
Like private car insurance, commercial car insurance is also compulsory. Private car insurance does not apply to commercial vehicles, which need to be covered by a professional policy. This insurance generally covers loss or damage to the vehicle due to accidental collisions, legal fees, and third-party injury or damage. Many commercial vehicle insurance companies have special programs that cover specialty vehicles and multi-vehicle fleets.
property damage or theft
Building and contents insurance typically covers damage to and theft of business property or products. It also protects businesses from risks such as fire, riots, storms, and subsidence, depending on the policy. Building and contents insurance typically covers the cost of repairing or rebuilding business premises, as well as replacing equipment and inventory. Your insurance company will work with you to develop an insurance policy that covers professional tools, equipment, or machinery.
employee protection
Workers’ compensation laws require employers to compensate employees for work-related injuries and occupational diseases. It applies to any employee at all income levels, including apprentices. In addition, employees injured on the job can sue their employers under laws other than workers’ compensation law. Employee protection insurance can help ease the burden of such compensation costs. Additionally, many insurance companies offer health insurance as part of their employee benefits package.
business interruption
If your business is forced to stop trading for some time, your business may still be in decline, even if insurance reduces the cost of refurbishment after a disaster or the cost of product loss. Business Interruption Insurance will cover you for lost income while you are unable to trade. It is often sold as an optional add-on to building and contents insurance. Android quickly reimburses the cost of outstanding invoices because we understand that maintaining cash flow can be a matter of life and death for small businesses.
