Is commercial insurance an expense or asset? Most business owners in Youngsville, NC and other parts of America think of insurance as an expense. In fact, accounting practice dictates we treat commercial insurance as such. While insurance is an expense in the strict sense, you should view it as an investment (asset) that cushions your business when the unthinkable strikes. As a matter of fact, insurance is a promise to pay in the near or long-term future. And like the purchase of any other investment, the purchase price is a consideration, but the value shouldn’t be put on the wayside.
If you have been viewing commercial insurance as just another expense, think again. Here is why commercial insurance is an asset for your business.
Liability protection
When you buy commercial insurance from Holmes Insurance Services, it safeguards your business against liabilities like bodily injury, property damage, and advertising injury that your business could cause to other people.
Since liability claims can be expensive, commercial insurance ensures that you don’t have to dip in your pocket when third-party claims come calling.
Protects your employees
Your employees’ productivity could be affected by work-related injuries and general illnesses. And since you are responsible for your employees’ welfare, paying for your employees’ medical costs can cripple your business finances. Thankfully, when you have workers’ comp insurance, your employees’ medical expenses, partial loss of income, and funeral costs are taken care of by commercial insurance.
Protects your assets
Think of the value of your business assets. Ranging from your building, inventories, furniture to computer equipment, it would be catastrophic to lose your assets when a disaster strikes. Thankfully, when you have invested in commercial insurance, your insurer compensates you for losses and damages to your assets.
The list above isn’t exhaustive. There is a lot more you can benefit from commercial insurance. If you are looking for proper commercial insurance in Youngsville, NC, contact Holmes Insurance Services.
