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How Commercial Insurance Helps More Than Loans When Disaster Strikes

Thriving businesses can be slowed down or even shut down temporarily when a catastrophic event impacts their business property or daily operations. While some companies wisely have commercial insurance coverage to protect against such losses or damages, other companies take the risk of relying far more on commercial or emergency loans to help cover repairs or replacement costs. However, disaster loans or business loans can create more problems than they solve, so in today's Aegis blog post we explain how commercial insurance is a much better choice and the many benefits they offer compared to loans.

Availability

Some companies choose to carry less commercial insurance under the assumption that the money they save on premiums would be worth it, and that they could always take out a business or disaster loan if they needed money for repairs or to cover losses. The reality is that disaster loans and business loans have very specific and narrow requirements to qualify, and there is no guarantee that a business would be approved for a disaster or business loan because of the substantial requirements that must first be met. Commercial Insurance policies such as Commercial Property, Commercial Auto, General Liability, Workers Compensation, Business Interruption Insurance, Flood Insurance, and Excess Liability coverage are far easier to obtain and are available for companies of all sizes and industries.

Reliability

Another benefit to relying on commercial insurance instead of hoping for disaster or business loans is that Commercial Insurance is much more reliable and can be disbursed much quicker for covered events. Companies in need of urgent assistance might be forced to wait weeks or even months for an emergency or business loan to be processed, with no guarantee that they would even qualify. When disaster strikes, the reliability of commercial insurance coverage makes it a far superior lifeline for businesses in need of urgent help for repairs, losses, and recovery.

No Repayment Issues

Finally, when businesses gamble on carrying less commercial insurance and hoping for disaster or business loans when the need arises, they often discover that these loans come with substantial repayment terms that can be difficult to repay. These might include higher interest rates or repayment requirements that are difficult to meet. However, commercial insurance provides financial help to policyholders as soon as possible, and without the immediate and long-term stress of managing loan repayment details. Instead, impacted businesses can focus full-time on repairing and replacing damaged property, leading to a faster recovery.

Loans can be helpful for some businesses that have suffered substantial damages, but having quality, reliable Commercial Insurance coverage is a smarter and safer choice for businesses of all sizes and industries. Commercial Insurance provides peace of mind and offers a direct pathway to recovery and long-term success that emergency loans simply cannot match.

Aegis Insurance & Financial Services is committed to helping companies have the financial protection needed to survive and thrive after a disaster strikes. For more information about our full range of top-quality Commercial Insurance policies, contact our office at 713-850-7622 or fill out our online form to request a free quote!

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