Professional indemnity/Product liability would probably top off as their main insurance coverage that every SP companies would need to purchase. By the nature of their business, companies are engaging their customers by offering product or legal advice, consultation, or general auxiliary services such as building management, cleaning, accounting, etc
Professional liability insurance (PLI) is a form of liability insurance which helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.Product liability is to insure against damages or death caused to 3rd parties through the use of product, due to performance or functional failure, which may lead of costly lawsuits or penalties associated with failure to comply to either regulatory requirements or social/ enterprise guidelines.
There is foreign exchange risk between purchase & sale of goods, storage cost of inventories, liquidity risk when inventories are not sold off, distribution cost in transporting goods from warehouse to consumers, credit risk when buyers default on their credit payments…
Bankers & financial institutions are more willing to grant favourable trade facilities when the borrower has a robust credit management system. Without it, any incidents of loss or default in receivables collection could lead to possible bankruptcy of the company, should trade facilities be cancelled or reduced. As such, insurance protection is fundamental to its solvency & growth