Business insurance can protect you against all kinds of contingencies. In fact, in many scenarios it is legally required that you have some form of insurance. In this guide, we take a look at some of the key reasons your business needs insurance.
Reasons Why You Should Have Business Insurance
Why do you need business insurance? Below, we take a look at the main reasons why business insurance is not optional for most self-employed people and businesses large and small.
You want to cover all aspects of your business
You never know when an accident is going to happen. There is always a chance of something totally unexpected event. Different levels of coverage can provide different levels of protection. For example, if you own premises, you may want to purchase property damage insurance.
It is also always possible that there is a lawsuit to cover, and liability insurance could cover the costs of your lawsuit. For example, if you manufacture a product and someone judges it to be unsafe or has caused them injury.
You have employees who depend on you
If you employ people, you should also think about their rights and protections. In most states, you need some form of indemnity insurance. If something happens to your employee while they are working for your company, it can be extremely costly. For example, if someone is injured while on duty to represent your business. If you are not insured, you may be sued.
Insuring your business is one way to avoid the costs of an employee lawsuit. Even if you don’t anticipate doing something wrong, think about all the companies that exposed people to asbestos before we fully understood the harm they were causing.
Business insurance protects your customers
Unless you can predict what will happen in the future, you also need to think about the implications for your customers. If someone slips while visiting a store you own or is injured because of a product they are buying from you, are you ready for the lawsuit or complaint? Business insurance can protect you from the costs involved, and it’s the right thing to do for everyone who uses your business.
You have significant real estate interests in your business
Ownership and real estate can be a huge benefit to a business. For example, if you own a restaurant chain, your real estate and the value it can generate can be a key part of your business and its value.
A commercial insurance policy can protect your property. Let’s say your premises are victims of vandalism or theft, or even natural disasters. If you have the right level of business insurance, you can be covered against anything that happens to those business assets.
Peace of mind
Even if you never have to make a claim on your insurance, the point is, you don’t have to spend your time worrying. If you are uninsured, being sued for millions of dollars is both stressful and potentially crippling for your business.
Who needs liability insurance?
In most states, you will need liability insurance if you employ someone in your business. Otherwise, you could be breaking the law.
In truth, every business should have insurance. It is the right thing to do and it can help protect you and the people affiliated with and associated with your business. The larger your business and the more people you employ, the more vital it becomes that you have a comprehensive policy that can protect you against all eventualities.
Not only is it the right thing to do to have insurance for your business, and to protect customers and employees, it’s just a good business decision. Imagine the worst happened and you ended up having to pay for a lawsuit. It may cost you so much that it cripples your business.
Finding the right liability insurance coverage
To help protect your business, chances are you will want to consider the following types of insurance:
- General liability insurance
- Professional liability insurance
- Employment Practices Liability Insurance
- Management liability insurance
A business owner policy (BOP) is an option that can cover many different aspects of your business, bundling multiple insurances into one premium.
In the modern age, you can use comparison tools to get the best price and level of coverage for you. Think about the premiums you will pay when looking for insurance, but also the financial value up to which you are protected. In addition to that, check if there is a large deductible on the insurance, as you would when purchasing any other policy.