Why Insurance is Important in Tanzania?

.Insurance is not like buying apple, chair or trouser. When you buy insurance, you’re buying a promise. It’s a promise that if something catastrophic happens to your business, insurance is going to assist you to make your business whole again. One can never predict when insurance will be needed. Many people only buy insurance when it’s required, like when they’re buying a new home or car. Sometimes, though, it’s tempting to question the value of insurance because it is an intangible product.

Here are few reasons why insurance is important / some situations when insurance could protect you from financial loss:

Natural disaster or home invasion

Home owners and renters face risk of their property being damaged by a natural disaster or a home robbery. If you are not insured, it may be costly to replace all of your belongings. You may not think your belongings are worth the insurance premiums, but replacing electronics alone could cost thousands of money, depending on what you own. If you are insured, your coverage can help you replace your items.

Lenders request Insurance

To get fund, most lenders require your business to have insurance coverage. Think about it: Mortgage lenders want proof of insurance before you buy or build a new building. In short, to get the money your business needs to keep going, it’s likely you enjoy the benefits of insurance. Without insurance, your winning business model can’t get the funding it needs to take its first step, or your established business model can’t get the funding to evolve and better compete.

Insurance protects Small Business Owners

In any Industry, if a risk goes wrong large enterprises will be able to survive. They can take a hit. But small business owners can’t take a hit. As a result, they are more risk averse, and in some cases, they sell out to large enterprises. If enough little guys leave the industry (and one large enterprises swallows them up), you’re left with a monopoly. With insurance, however, the little guys have support if they want to take a risk, which means they stick around longer. What it comes down to is that insurance helps prevent monopolies from forming.

Insurance Ensure Family and Business Stability

Insurance is a safety net for when risks go wrong. Life insurance can support the life of a family, should a member be lost. It’s similar for a business. Should a key member or piece of equipment go out of commission, the business can carry on, thanks to insurance. It all goes back to the idea that insurance, when activated, makes policy holder whole again.

What more would you add?

Author:Emmanuel Kanuti