A survey conducted by Manta and Insureon in 2018 found that out of 10 small business owners, fewer than three had a business owner’s insurance policy, according to Forbes. Taking chances with business insurance is one of the biggest mistakes you should not commit when running a business. Accidents are unpredictable, and the aftermath of risks such as fire, natural disasters, theft, and injuries are expensive. Carrying business owner’s insurance is essential, as it offers the types of insurance every small business needs. While there are reasons most entrepreneurs are uninsured, lack of knowledge and awareness are key factors. It is, therefore, critical that business owners understand the reasons why every small business must have coverage.
Insurance is a Legal Obligation
Regardless of your industry, carrying liability insurance is a legal requirement. Although, in some states, it is not a legal requirement, it is advisable to have coverage to protect yourself from liabilities. Liability insurance protects you from lawsuits related to malpractice, errors, and omissions to negligence. If your trade involves the sale of products, for instance, authorities expect you to carry a product liability policy. With this policy, you can rest assured of protection against claims of injuries and property damage caused by products supplied through your business.
Workers Compensation Prevents Losses
Workers’ compensation insurance is crucial for any small business looking to expand its operations. This form of coverage protects workers and employers against accidents that lead to injuries, disabilities, and complicated health disorders. Workers receive compensation for medical expenses and loss of time. You are protected against lawsuits and hefty fines imposed by legal authorities if sued for negligence or malpractice. Court fines can be expensive for a small business, leading to business closure. If you don’t have workers’ insurance, you must apply for it before accidents occur. The good news is that getting a workers’ comp quote is easier than ever before. You only need access to the internet and browse through your insurance company website, compare quotes, and choose the one that meets your business needs.
Improves Business Credibility
Business insurance is a sign of your credibility in the market. Clients will always request a copy of your policy before signing a contract with you. Customers want to be sure that in the event of an accident, they are protected against liabilities that may arise. They also want to be sure their investment is safe. For example, if you offer roofing services, homeowners need assurance that in cases of accidents, they will not be responsible for injuries incurred or property damage. Good examples of policies that can improve your business practices include general liability, worker’s compensation, and professional liability insurance.
No matter what kind of business you are running, taking insurance should be a priority. With the right amount of coverage, you will have peace of mind. You can manage your business knowing that should an accident happen, the insurance company will handle everything.
