These are 8 Reasons Why Business Insurance is Important
You’ve worked hard to build your business. Insurance is essential. Insurance is not a “cookie-cutter” policy. Depending on your company, one type of policy may be required. Other times, multiple policies might be needed to provide the right coverage.
Online startups may require coverage for libel or slander. However, if your brick-and-mortar business is located in the United States, you may want to purchase general liability insurance through SimplyBusiness for third party property damages. This insurance might seem like it will eat into your profits, but it is not. It’s very affordable to get business insurance. Plus, it could end up costing your company more than any policy.
Insurance is a reality when it comes to owning a business. It should have been included in your expenses when you first created the plan. That’s just good planning. Take a look at the top reasons to get insurance for your company if you don’t own it.
1. You must protect your employees
You must have insurance if you own a business with employees. The most valuable asset of your company is its employees, not the products and services they offer. Employers are required to have a worker’s compensation policy. You might also consider disability coverage. But, your most important asset is the employees.
2. You are protected against “Acts of God.”
CBS News reports that insurance covers your business against acts of God. This means that you will be protected for any events or accidents that are not caused by human activity. Acts of God typically refer to natural disasters such as floods, hurricanes or tornadoes. Even fires caused by extensive lightning can count as acts of God. To help you in this situation, an all-risk policy or perils policy is necessary.
3. Your business will look more credible and trustworthy
Although credibility is not something many business owners consider a perk of their business insurance, it is. People won’t want to deal with companies that can’t provide compensation or a solution if the product or service isn’t as promised.
You might see signs that say “Licensed, Bonded, and Insured ” in certain companies. This is not to make you look flashy, but to show potential customers that your company is a safe bet. That’s going to help build trust with your customer base.
4. Protect your business in legal battles
People are trying to sue companies because we live in a sensitive and litigious society. This alone should be enough to ensure that your business is protected. Imagine being sued without insurance. A single legal battle can endanger your venture.
A broken contract or a disgruntled worker can cause financial trouble for a business. Even if you win the case, your business may still fail simply because your legal defense was too expensive.
5. Peace of mind
It’s better not to have business insurance than it is to not have. Insurance protects your assets and business in the event that they are damaged by natural disasters or sueds. But the best reason for your company to have insurance is the peace-of-mind it gives you.
There are many factors that can have a negative effect on your business, and they are beyond your control. You can have peace of mind by taking proactive steps to protect your business from any factors beyond your control. Get your business insured as soon as you open it.
6. Future is Unpredictable
Nobody can predict the future. No business owner can do that. Your luck is good if your business is well protected from lawsuits and natural disasters. However, no one can guarantee that such things will not happen in the future.
- To avoid such unfortunate consequences, it is important to have insurance. Owners can feel secure with the right insurance.
- You may be asked to purchase business insurance in your contracts.
- Contracts are something that every company has to make. It is important to know that your contracts could require you to have business insurance.
Contracts include:
- Lease a property from landlords
- In client’s agreements
- Finance good things with money
- Lender agreements
7. Retaining employees
Insurance does not just cover your company from natural disasters. Insurance can also help you retain qualified employees.
Every credible employee seeks out benefits for their health, long-term care, and disability insurance. You could lose qualified and skilled employees if you don’t offer these benefits.
8. Management Insurance is Protective
Management liability insurance is essential because it protects the CEO, owner, or “main person” who manages your business from costly lawsuits. Liability insurance covers those who manage non-profit organizations.