Running a business comes with a number of inherent risks; an employee could be injured whilst on the job, your property could be hit by a fire or a natural disaster, or a client could file a lawsuit, for example.
For these reasons amongst many others, it’s important to make sure that your business assets are protected. One of the best ways to do this is to ensure that your company is adequately insured. We’ve put together some of the top reasons why your business needs insurance.
It’s Illegal Not To:
First of all, it’s actually the law to insure your business if you are hiring employees. Legally, employers need to be covered with certain types of insurance including worker’s compensation, unemployment, and disability, depending on your state. Failing to get these legally required insurance policies could result in consequences for your business; you could be fined or even find yourself dealing with legal penalties. You may be excluded from public contracts and receive ‘cease and desist’ orders as a result of failing to get the right insurance as an employer, and these all cost more than a regular insurance policy would.
Avoid Getting Sued:
There’s no denying that we are living in a litigious society. It’s not uncommon for people and other companies to file lawsuits these days, and in the event of a liability claim or a lawsuit, your business could crumble without the right insurance. All it could take is one disgruntled employee, one accident on your premises, or one breached contract and everything could be over for your brand, even if you win the suit due to the high cost of a legal defense.
Protect Your Premises:
If you work out of premises such as an office or a store, then have you given any thought to what would happen if the building was no longer usable? Hopefully, it will never happen, but it pays to be prepared for issues such as fire, floods, and other natural disasters. You should be covered with a good P&C insurance policy which will payout in the event of any property loss to replace or repair buildings, equipment and more. Getting Business Owners Insurance will also ensure that you do not lose out financially during the time that your business is closed. Check your business insurance to make sure that this type of cover is included.
Improve Your Credibility:
If your business involves working with the public, then people are more likely to use your services if they know that you are adequately insured. Having insurance makes your business look credible and trustworthy, and shows prospective clients and customers that your brand is a safe choice. They can be assured that if anything does go wrong with the work that you do for them, you have a way of compensating them.
Last but not least, your employees are one of the most valuable assets in your company so having the right insurance cover will ensure that they are protected. Whilst it’s illegal not to provide worker’s compensation, it’s worth considering further insurance types for your employees, such as disability costs.
Getting your business adequately insured isn’t just the law you will also improve relationships with employees, build trust with customers and protect your business against the worst scenario.