Whether you are a hugely successful business or just starting out on your business ventures, it is never a good idea to assume that you are exempt from disasters.
In any type of business, there are dozens of things that could go wrong. Natural disasters, personal injuries, illnesses – these are just a few of the many things that can cost a business a lot of money. And without business insurance, they could cost you enough to force you to shut your doors. Many business owners avoid getting insurance because of the price, however, the cost is actually a lot more affordable than thought to be. Not to mention, the cost of the insurance is far less than the cost your business may face without it. With a single incident, regardless of your or your business’s fault, you will be extremely thankful that you have.
In case you need more convincing, here are a few other reasons why your need insurance for your business:
1) It protects you
According to law, businesses are required to provide employees with certain types of insurance. Failure to comply with such laws could result in fines or even civil and criminal penalties. In addition, you could end up getting sued. All it takes is one broken contract or one injured employee and you could have a suit or claim filed against you. So while you may think that business insurance is too expensive, it won’t cost you near as much as the penalties if any such events should occur.
2) It protects against disaster
We touched on this a little bit above, but insurance can help to save your business from natural disasters like hurricanes, earthquakes, and floods. While other types of insurance will cover actual physical damage related to such disasters, many people don’t consider the costs to cover lost time. In many natural disasters, days, weeks, and even months worth of business can be lost. Business insurance can actually help to protect you against income loss by paying for the income your company would have made had the disaster not occurred. If you wish, you can also add employee protection to your policy. This will ensure your employees continue to be paid throughout this time as well.
3) It protects your employees
When it comes to running a business, no one is more important than your employees. They are a company’s most valuable asset and they need to be protected. In case of any future accidents, business insurance will not only cover your back, but also the backs of your employees.
All it takes is for one customer to enter your business and injure themselves to have a huge lawsuit on your hands. Business liability insurance can help to protect you against this. This type of business insurance is purchased separately and covers any accidents that occur on business premises, as well as any product defects that may cause injury on or off property – this includes accidents in company cars.
These are just a few of the many reasons that you need business insurance. Here are a few others:
- Business insurance gives your company credibility
- Business insurance protects your personal assets
- Insurance helps to attract and retain employees
- Some contracts require a business to have insurance
- Insurance enhances your credit
By far, the most important reason that you need business insurance, is because you cannot predict the future. We can all wish and hope that nothing bad will ever happen to us, but as hard as we try we cannot always prevent bad things from happening. In such cases, its always better to be safe than sorry.