Starting a new business can be exhilarating; working for yourself, branching off on your own or into uncharted waters. It also comes with many risks, so it is important to protect yourself and your business with adequate insurance coverage.
Here are ten reasons to why you need business insurance.
- It is the law
There are laws in place that regulate the amount of coverage and in many cases even what type of coverages must be carried by a business. The coverage types and levels may vary on the number of employees or type of work conducted. Know what is required for your business to carry before getting started.
- Some of your contracts may require it
Working as a contractor or freelancer may require additional coverage to safeguard the umbrella company you are working under from mistakes you may make on the job while representing them. In other cases, banks may require you to carry insurance in order to qualify for a loan or the leasing company for your office may require business insurance to be carrier before agreeing to a leasing term.
- Safeguard your business from the unknown
You never know what life has in store for you or for your business. Business insurance helps safeguard small businesses from all sorts of threats like lawsuits, natural disasters, employee or customer injuries, or death of owner. Don’t risk the future of your hard work because you don’t think something bad could happen to you.
- In case you get sued
Sometimes it feels that some people are just looking to make a quick buck at the expense of someone else. And other times, it is a legitimate litigious case. Either way, it is important to protect your business from bankruptcy should you be facing a lawsuit.
- Keep your business running in the event of a disaster
Property and casualty insurance can help protect your brick and mortar business against damage caused by “Acts of God”, or natural disasters like flood, hurricanes, or fires caused by lightening.
- It will make you look more credible
Smaller businesses do not have the luxury of a name brand to self-promote and these businesses need a way to be more appealing to potential consumers. Carrying business insurance increases your credibility by making you look like a responsible, trustworthy, and serious business owner.
- Protect your employees
Employees are your most valuable assets, not a service or product you may carry. Carrying select types of coverage like worker’s comp or medical health coverage may be required but offering other types of non-required coverage like dental or disability shows your employees that you care about their well-being. This transitions into employee loyalty and a smaller turnover rate.
- Protect your business from loss of income
Closing up shop because of a natural disaster, like a hurricane or flooding, can cause a loss of income but it can also be unavoidable. Getting business insurance can help protect your company from falling into the red should a disaster hit.
- Insure (human) company assets
If the death or disability of yourself, the business owner, or a valued employee would disrupt the normal function or productivity of the company. These coverages are also known as “key person” insurance.
- Attract employees
These days, benefits are just as, if not more important, than the annual salary offered for a position. Offering insurance coverage to employees will attract more qualified individuals and help retain your staff and promote loyalty to the company.