Here are some of the reasons why you would update your BIOS:
1. OS Support
It's possible that Windows 95 isn't configured 100% correctly on a computer with an outdated BIOS. To let Windows 95 fully support Plug 'n Play you also need a PnP-BIOS. This is a very important reason to update your BIOS.
2. Large HDD support
All harddisks that are sold today are more then 528 megabyte. To support these harddisks the BIOS must have LBA (Logical Block Addressing) support. When your BIOS doesn't support LBA and you want to use your new harddisk at full capacity you have to use software drivers that trick the BIOS. With some of these software drivers Windows 95 will load your HD in compatibility mode which means a performance loss.
3. Bug fixes
A third important reason to upgrade your BIOS is to solve bugs. Other reasons are e.g. new settings in your BIOS: Booting from CD-ROM, Boot from SCSI before IDE harddisks,...
There is no guarantee a new BIOS will solve your problems, and flashing can be risky.
Go back to our BIOS FAQ.
(Examples: how to update your BIOS, how to identify your motherboard)