Small Business

Some small business owners think that business insurance is an unnecessary expense. They don’t want to put their money into it, but they regret it when the time arises. No matter how well you plan, you can never be sure about the uncertainties. So, business insurance helps you to avoid financial loss during any crisis.

Moreover, it also helps your business to look credible and to develop a strong sense of growth for the future. If you are wondering whether your small business needs insurance, read on to know what experts say about it.

Reasons Why Experts Suggest to Have Business Insurance

Experts of insurance authority Dubai say that business insurance helps companies to protect their employees, property and avoid financial loss during an unforeseen event. Below are some major reasons that they suggest having insurance for your business.

Sustain During Uncertainties

No business owner can ever clearly predict the future. It’s great if there are no accidents, thefts, natural disasters, or lawsuits occur in the business. However, you can never be sure that these events won’t occur. So, it’s better to be insured to sustain during any uncertain events.

Some business owners failed to return to their normal standard after a crisis. Most of them either don’t have business insurance, or their policies don’t provide adequate coverage. Hence, the best thing about insurance is it helps you to survive during an unforeseen event.

Protect Employees

When you have employee disability insurance, it protects your employees during an accident or injury. Dubai law mandates every business owner to provide medical insurance and other disability insurances.

If your business involves the movement of goods or passengers, you must have vehicle and employee disability insurances. This helps you to claim compensation for vehicles, and your employees can get insurance benefits for a workplace injury.

Make Your Business Look Credible

Having insurance makes your business stand apart from your competitors and look credible. Employees and investors also trust your business when you have insurance. They believe that you have a way to compensate for the loss if anything goes wrong with your business.

Hence, most of the home service companies carry signages like “insured, licensed.” It shows their credibility, and they ensure that you can get compensation during any crisis.

Attract and Retain Employees

When you have business insurance, you can attract and retain potential talents. Employees love to work for a company that provides employee benefits, health insurance with a decent salary.

It doesn’t matter if you pay higher; employees not just consider the salary while choosing a company, they also look for other benefits. So, you can plan to pay reasonable wages with employee benefits and insurance.

Helps You to Avoid Business Litigation

If you don’t have proper insurance, you may face business litigation. For example, if you are a manufacturer and someone filed a lawsuit against your product. Then, you will be in trouble if you don’t have product liability insurance.

Another example is if your business involves vehicles without insurance, you may be dragged to court due to vehicle accidents. So, business insurance also helps you to avoid business litigation.

Credit Enhancement

When you have business insurance, you can get loans by keeping the policy as collateral. So, insurance helps you to get credit enhancement. The lender is more than happy to offer you a loan because they can get back their money with interest even if something goes wrong.

Even if a business owner doesn't repay their debts, the lender can collect their money by surrendering the policy. So, it’s easier to get loans from a lender when you have business insurance.


These are some major reasons why experts suggest having business insurance. Now that you understand the importance, it’s time to decide which type of insurance policy you need. Ensure that you properly evaluate your business risks and choose insurances that provide adequate coverage. Lastly, don’t hesitate to ask if you have any queries regarding business insurance.