September 13th, 2018

Finance

There are some pretty serious risks that come along with owning a business. A client could allege a contractual breach and file a lawsuit, an employee could get hurt on the job, or a natural disaster could roll through and cause incredible damage. As a business owner, one must always make sure their personal and professional assets are protected. The best way to approach this protection is to make sure you and your business are covered by adequate insurance.

The Top 6 Reasons Why Your Business Needs Insurance

It’s the law

According to the Small Business Administration, or SBA, businesses with employees must provide worker’s compensation insurance, unemployment insurance, and disability insurance depending on where the business is located. Some states may have stricter insurance law policies, while others may be more lenient. Failure to adhere to state insurance laws can result in fines, civil or criminal penalties, exclusion from public contracts, and cease and desist letters.

Lack of insurance can result in a lawsuit

Without insurance, a lawsuit or liability claim can be enough to put your business under. Even if your business is fortunate enough to win the lawsuit, the legal fees associated with fighting the case could cause irreparable financial damage. Liability insurance is there to provide that peace of mind.

Keep running when the unexpected happens

The unexpected is just that – unexpected. Natural disasters and other calamities can affect your business in what seems like the blink of an eye and you’re not likely to get much notice when they happen. Insurance policies can help you to recover your losses after a fire, flood, earthquake, or other disasters, helping to keep your business running when the worst occurs.

Adds credibility

When you have business insurance, clients and customers know you’re serious about your business, and your seriousness ensures that you’re a safe bet. Should anything go wrong after they’ve made an investment in your business, you have those losses covered. Advertising that you’re insured builds automatic trust.

Protection for your most valuable assets

Your most valuable assets are not your services, your equipment, or the products you offer. Your most valuable assets are your employees, and in the event, one befalls an injury on the job, insurance has them and you covered. The law requires business owners to carry worker’s compensation insurance, and disability insurance should be part of that coverage as well.

No one can predict the future

Things may go well for a while, it could even be a long while, but eventually, something is going to come up. Whether an employee gets injured on the job, a flood ravages your business, or you fall ill, insurance makes sure your business stays afloat.

Insured For peace of mind

It takes a lot to build a successful business, so why not protect all of the work done? If you want to learn more about business insurance and what it can do for you contact a local broker today.