The History of Business Insurance and Why You Need It
Business insurance in the simplest form dates back to early civilization
, if a ship was struck by pirates and lost its cargo other ship owners would pitch in to help. Though a simple idea this is the format for a lot of current policies, protect business inventory and reduce risks.Some of the first formal insurance policies where British merchants who would underwrite dangerous voyages overseas. It was the underwriters who perfected the art of writing policies and selling policies as time went by insurance became more complicated and underwriters specialize in underwriting. Selling of policies had to be done by other individuals hence agents.
After the great fire of London the first insurance company was opened in 1667. Later in America Benjamin Franklin opened the first insurance company in 1752. Benjamin Franklin a very shrewd business man because of fire risk would not insure structures built completely out of wood.
So even in early time insurance was pretty straight forward things happen fire, flood, and thefts so individuals and business would need to insure themselves against these disasters. Over time business became more complicated and insurance had to follow. This meant that most business needed a Liability Policy and Business Owner's Policy. Liability would protect business from any lawsuits brought about by individuals. Business Owner's Policy would actually protect the business from lose from fire, flood, and theft.
In 1897 the Workmen's Compensation Act was passed in Great Britain. This made it mandatory for corporations to insure their employees. This was laid the ground work for the present Corporate Liability insurance.
Doing business exposes us to risks so insurance is necessary. Just like a fire can consume a home without insurance a lawsuit can bankrupt a corporation.
The History of Business Insurance and Why You Need It
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