Importance of insurance to business. - SS2 Commerce Past Questions and Answers - page 1
What does insurance provide businesses with in the event of potential financial losses?
Protection against risks
Access to loans
Marketing strategies
How does insurance contribute to business continuity?
By ensuring employee satisfaction
By minimizing legal liabilities
By providing funds to repair or replace damaged property
What does liability insurance protect businesses from?
Employee theft
Financial consequences of legal claims
Property damage
What does workers' compensation insurance provide coverage for?
Business interruption
Employee injuries or illnesses
Cybersecurity breaches
What does insurance provide to business owners and stakeholders?
Additional income
Peace of mind
Competitive advantage
How does insurance contribute to business continuity? Explain briefly.
Insurance contributes to business continuity by providing funds to repair or replace damaged property, equipment, or inventory, enabling businesses to recover and resume operations after a loss or setback.
Why is liability insurance important for businesses? Provide an example.
Liability insurance is important for businesses because it protects them from the financial consequences of legal claims or lawsuits. For example, if a customer slips and falls in a business establishment and files a lawsuit, liability insurance can cover the legal defense costs and potential settlement amounts.