1. Insurance minimizes loss to the business and entrepreneur, arising from fires, natural disasters, subsequent business interruption, robbery, employee dishonesty, and legal liabilities or responsibilities among other risks.

2. It reduces the disruption of cash flow due to losses as insurance helps to quickly restore the business to its prior position before the loss occurred.

3. Insurance helps to ensure the continuity of your business by providing funds to rebuild the business operation after a major loss or total loss.

4. By selecting insurance as a method of transferring risk, vital capital can be better instead of being put aside to fund the uncertainty of loss. The insurance carrier relieves the business of this burden.

5. Insurance is a cost-effective method of managing risk. The cost of annual insurance is minimal (often less than one percent of the limit insured) when compared to interest rates on a bank loan (20 percent), to restore the business in the event of loss.

6. Insurance acts as a guarantee for financial institutions whenever the business assets are used as security for a loan.

7. Insurance protects the business and individuals from extraordinary losses that can arise from their legal liabilities (obligations) to employees and third parties out of the operation of the business.

8. An insurance partner can assist the entrepreneur to improve management of the business operation by providing expert advice and prevention and control of risk factors, and the improvement of processes. This can ultimately result in reduced susceptibility to losses and reduction in certain operating costs.

9. Insurance coverage provides a level of comfort and trust among your business partners and clients that the business partners and clients that the business will honor its obligations even in the event of unforeseen circumstances.

10. Insurance protection helps to preserve and maintain the profitability and financial viability of corporate entities as losses do not have to be borne from business earnings.