Reluctance in insuring a business

capri · Jun 26, 2023

An insurance policy is beneficial to a business because it guarantees the owner that, in the event that the relevant risk event/s happen/s, she receives compensation such that she returns to the state she was in before the occurrence of such incident.
Despite such assurances, many business owners, particularly the small-scale ones, are reluctant to purchase insurance policies.

What are the factors that may discourage business owners from insuring their ventures?

Springtime · Jun 26, 2023

I think business owners who do not want to take out insurance policies may think that the premium is too high. In my location, it is mandatory for a business to buy Workers Compensation Insurance. In the event that the worker is hurt or injured during to work, s(he) will get compensation from the insurance company.

Abdul01 · Jun 26, 2023

capri said:
An insurance policy is beneficial to a business because it guarantees the owner that, in the event that the relevant risk event/s happen/s, she receives compensation such that she returns to the state she was in before the occurrence of such incident.
Despite such assurances, many business owners, particularly the small-scale ones, are reluctant to purchase insurance policies.

What are the factors that may discourage business owners from insuring their ventures?

If the risk involved in such business is low and that's particularly for small business owners .they don't have much to lose when any loss occur and they feel it as cheating on their end to keep paying insurance fee.

Semi · Jun 26, 2023

One of the reasons why insurance is not majorly patronized in my country is the fact that we believe that unfortunate situations can't happen to us. And it stems from the religious nature of my people.

cherry123 · Jun 27, 2023

The major reason I believe business owners who do not want to take out insurance policies is that high premium maybe in their country or location. This is mostly for small medium businesses

capri · Jun 27, 2023

Semi said:
One of the reasons why insurance is not majorly patronized in my country is the fact that we believe that unfortunate situations can't happen to us. And it stems from the religious nature of my people.

I must say that faith is an interesting phenomenon.
Through faith, people are able to contend with hardships that those without faith would not.

I guess players in the insurance sector are not happy about the described influence of faith on people's views toward insurance.

Starmix · Jun 27, 2023

The major reason is they lack a budget for this or the management has its own insurance company. It is a must to protect the business against fire and burglary. The payment is done yearly called a yearly renewable fire insurance policy.

Heatman · Jun 27, 2023

capri said:
An insurance policy is beneficial to a business because it guarantees the owner that, in the event that the relevant risk event/s happen/s, she receives compensation such that she returns to the state she was in before the occurrence of such incident.
Despite such assurances, many business owners, particularly the small-scale ones, are reluctant to purchase insurance policies.

What are the factors that may discourage business owners from insuring their ventures?

Any smart business owner who can actually afford to have his business fully insured, will always do it because it is for the betterment of his business against loss.

cherry123 · Jun 27, 2023

I think a lot of these people don't see the need for this, hence no Budgeting for it. And maybe they have other means to protect their business against fire and burglary.

Passiveearner · Jun 27, 2023

There are many businesses that are not insured because they do not need an insurance policy in the first place. The fact remains that this also includes certain kinds of shops and stalls that are not insured.

eldavis · Jun 27, 2023

One major factor that might discourage most business owners from insuring their business, especially does running a small business is the cost. In some countries the cost of insuring a business is on the high side.

Niyi Briggs · Jun 27, 2023

Passiveearner said:
There are many businesses that are not insured because they do not need an insurance policy in the first place. The fact remains that this also includes certain kinds of shops and stalls that are not insured.

Have you realized that anything can happen at anytime? A fire incident can happen and all the goods are burnt down. Every business needs an insurance policy. I have one for my business because I have been hit before.

Semi · Jun 29, 2023

cherry123 said:
The major reason I believe business owners who do not want to take out insurance policies is that high premium maybe in their country or location. This is mostly for small medium businesses

The premiums are negotiable and flexible depending on the extent of coverage you want. It might not need to a total coverage but just insure the most risky part of your business. Life and business can be funny sometimes.

capri · Jun 29, 2023

Passiveearner said:
There are many businesses that are not insured because they do not need an insurance policy in the first place. The fact remains that this also includes certain kinds of shops and stalls that are not insured.

I am persuaded tp think that those businesses that fail to purchase insurance covers belief that the financial cost of doing so is greater than the cost they would incur if the venture is burned own in a fire, for example.

A debatable position.

cherry123 · Jun 29, 2023

Businesses that are not yet insured because they do not understand this should be educated on it. Some business owners need to know the benefits that an insurance policy brings to a company

Heatman · Jun 29, 2023

eldavis said:
One major factor that might discourage most business owners from insuring their business, especially does running a small business is the cost. In some countries the cost of insuring a business is on the high side.

It is very unfortunate that this kind of a thing is more common in developing countries because those who run businesses in developed countries always have them insured.

Etini Willie · Jun 30, 2023

Every business needs to be insured as it can make a business not to go down and close in the event of a bad happening. People in my country always think they are losing when they buy insurance and keep paying premium and nothing still happens.

Reluctance in insuring a business

capri

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Springtime

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Abdul01

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Semi

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cherry123

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capri

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Starmix

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Heatman

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cherry123

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Passiveearner

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eldavis

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Niyi Briggs

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Semi

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capri

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cherry123

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Heatman

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Etini Willie

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