How does business insurance policy works?

General
1

I am new to insurance policy, can anyone explain me how does this works?

2

In simple words, business insurance protects your business from big losses by paying you money when something goes wrong.

Steps of business insurance :-

  1. You buy insurance for your company
  2. You pay premium
  3. Something unexpected happens
  4. You file a claim
  5. They check and pay for the loss
  6. You renew the policy yearly

Example: You own a grocery shop and you get insurance for fire and theft. By chance your shop catches fire or robbed and your stock burns or robbed then the insurance company will pay for the loss.

Business insurance is like a safety net. it does not stop bad things it just make sure you dont loose everything.