GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Why should businesses pay for non-compulsory insurances?
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To write off the expense
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To protect financial and non-financial assets from potential loss or damage
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To ensure that they are protected against negligence
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To stop anyone making a claim against them
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Explanation:
Detailed explanation-1: -Directors and officers (D&O) liability insurance is an insurance coverage, which seeks to protect individuals who are serving as directors or an officer of a for-profit/ non-profit business or other type of organization, from their personal losses in case they are sued.
Detailed explanation-2: -Business insurance protects businesses from any financial loss or damage that occurred during the everyday operations. A policyholder gets the coverage for risks related to employees, damage to property as well as legal liabilities. Such incidents can cause a major setback to your business.
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