By: First Union
Why You Need Business Insurance
Most small business owners will wonder about the type of insurance they need as well as the amount of coverage that might be required. The important thing is to talk to an insurance professional so that you do understand fully what can happen if your business insurance coverage is insufficient. Things can go wrong, accidents happen; if something does befall the company and you are involved in an accident or something of that nature, you want the peace of mind that comes with knowing you have the insurance coverage necessary. Otherwise, what could happen is that the company may have to pay out of pocket, or worse, you may have to come up with the cost of damages and/or repairs. In this article, we examine the reasons why every business owner should have the proper insurances in place for their company.
Beyond of course helping to cover the cost of any damages that you might be facing as a result of a lawsuit, for example, various types of business insurance also can protect the company owner along with employees. This is crucial, especially where employees are concerned. If one of your team members does get hurt and cannot work for some time, the business insurance, in this case, would cover things such as medical care and lost wages.
There are numerous reasons why you should have business insurance for your organization…
In Many Instances, Most States Will Require Business Insurance
While not all states will require a small business owner to carry insurance, many of them do. It is the law in several states across the country. And if you have employees you almost are always required to at least have worker's compensation insurance. If your state does require insurance and you are found to be in violation as you do not have the requisite business insurance in place, you could face penalties and fines. Even if your state does not require any form of insurance, you really should look into coverage. Otherwise, if legal action is brought against the company, for example, you could be looking at major costs in the form of damages. Or let's say that the building out of which you operate is destroyed by fire, again, without insurance there is very little chance of recouping your losses.
As Mentioned, Business Insurance Protects Your Employees
Just about all US states will require a company with employees to have worker's comp. This again is meant to protect those employees. So if an employee gets hurt on the job or is stricken with a major illness, worker's comp would kick in and offer coverage by way of allowing for medical expenses, any missed wages as well as death benefits if applicable. There are also unemployment insurance plans which are separate from worker's comp. Looking into these plans as well is a good way to help protect those who work for you.
Insurance Can Also Help to Protect Your Customers
Certain types of business insurance can apply to coverage for clients and customers. For example, if while at your physical location a customer slips and breaks something, then the policy will come into play, covering expenses related to bodily injury. Some insurances can be used in instances of property damage that affects a customer as well as that which covers personal defamation. Additionally, many small business owners are also now carrying some form of cyber insurance. If there is a data breach within the company and a client's information is compromised in some way, this type of business in insurance can be used for legal fees and any liability issues that may arise as a result of the cyber attack.
Having Business Insurance Can Help with Credibility
How you treat your business, what you invest into it, and yes, what insurances you carry all go toward establishing your company as a more credible one. By getting the proper business insurance, you are showing people that you care about managing risks and also, that you care about your customers and employees. This way too, you can confidently assure clients that you will be able to take care of issues that arise because you are fully covered.
Certain Types of Contracts May Require You To Have Insurance
In certain instances, your business will have to show proof of insurance to execute a contract. Among the types of contracts that will require you to have business insurance in place are: rental agreements, some business loan contracts, and various types of client contracts.
Business Insurance Can Help with Employee Recruitment
In this day and age, employees are searching for more than just a decent paycheck when it comes to the job hunt. They want benefits and in particular, they want to make sure that a company can provide a good health insurance plan among other such benefits. This will not only help you recruit top talent but also retain those skilled employees.
Business Insurance Protects The Owner
When you get insurance for your company of course you want to protect those involved with the organization, but you also want to ensure that you as the ownerCEO have adequate protection. Certain kinds of management liability insurance will indeed cover you if you are facing a lawsuit for example that could otherwise get very costly for you as the business owner.
Insurance that Protects Against Natural Disasters
In just about every area of the country, natural disasters are bound to strike at some point in time. Things such as floods, fires, tornadoes, and hurricanes can take their toll on the physical property that a business may own. To this end, having insurance that covers you if a natural disaster does impact you is so important.
The Peace of Mind that Comes with Having Insurance
Simply put, you want to get business insurance so you are not worried about what to do if you are sued, or if an employee gets hurt, or if the business location is flooded or in some way damaged. As a small business owner, there is already so much that you have on your plate, that you are daily worried about; getting the right kind of insurance is at least one thing you can do to ease some of that worry.
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