What Is Financial Insurance?
Just like individuals insure themselves against financial risks that can be caused by illness or unemployment, businesses protect themselves with the help of financial insurance covering the financial losses incurred by, for example, a failure of their partners to deliver their contractual obligations, a sudden drop in the value of stocks, or the bankruptcy of the business partner.
Financial insurance can help companies fit the laws governing their industry as well as make them capable of maintaining policies insuring against claims related to contractual and legal obligations.
What Does Financial Insurance Cover?
Arguably the most important form of insurance carried by financial companies, financial insurance can cover for financial losses caused by all types of external forces, from market fluctuations to weather to unscrupulous or insolvent business partners.
How Much Could It Cost to Get Financial Insurance?
The key factors are the location of your business and its size, the type of the industry, the history of your claims, as well as your deductible and coverage limits. You may pay $500 to $1,000 a year for $1,000,000 of liability insurance covering injuries and property damage. But then again, the actual figure may be significantly lower or higher due to the peculiarities of the case.