Importance of insurance to business. - SS2 Commerce Past Questions and Answers - page 1

Protection against risks

By providing funds to repair or replace damaged property

Financial consequences of legal claims

Employee injuries or illnesses

Peace of mind

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.

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.