Corporate insurance can be considered one of the risk management tools. It allows organizations to share the loss burden with an insurance company. As with any insurance, the company pays a small annual premium to cover its property, employees, and services. The insurance company will help pay for covered losses within the policy limit. If you don't have insurance, you could have a huge out-of-pocket expense.
Business insurance will protect the business from losses due to events that may occur in the normal course of business. There are many types of business insurance including coverage for property damage, liability, and employee-related perils.
Companies evaluate their insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates.