While running your own business certainly comes with several rewards, it also undeniably comes with its own set of risks, whether it be any angry client who files suit or an employee who gets physically hurt at work.
For these reasons and others, having insurance is important for protecting your business, your finances and your assets.
Here are the top five reasons why you need business insurance:
1. It Makes Your Business Look More Credible
First and foremost, insuring your business will make it look more credible both in the eyes of clients/customers and future employees. The reason why is because it shows them that if things do not go the way they want them to, then you still have the ability to compensate them and are therefore less of a risk.
2. It Keeps Your Business Running During Disaster
If disaster strikes (as in literal disaster such as a natural disaster), then business insurance such as property and casualty insurance will help cover the loss of any property you sustain, including damages to your building and to your equipment.
3. It Protects Your Employees
Even more important than protecting your property and your equipment is to protect your employees. In fact, your employees are easily your most valuable asset. While currently law dictates that you must offer workers compensation, offering extended insurance such as disability coverage will be a great way to protect the interests of your employees.
It also protects your own interests, as you’ll be protected against liability claims and lawsuits. Speaking of lawsuits…
4. It Protects You From Being Sued
While having business insurance cannot actually stop you from getting sued, insurance such as general liability insurance can protect your company financially should a lawsuit be inevitable. Lawsuits are not something you want to convince yourself will never happen to you.
All it takes is one accident to happen in the workplace or one contract with a client that’s been broken for one to happen, and even if you win, you may still be forced to close your doors due to the high costs of mounting a legal defense.
5. It May Be Required
Finally, having business insurance may be required in some cases. For example, when you rent a building or shop for your business, the landlord may require you to carry insurance if their policy does not cover it. Or if you borrow any specialized or expensive equipment, then you’re most likely going to need to have insurance as well.
In fact, even contracts with clients may have language in them that requires you to carry insurance, so you can compensate them in the event that things do not go as they were planned to go.
Finding The Best Business Insurance For You
Hopefully the reasons in this article have helped convince that you getting business insurance is something you need to do. In the long run, it will prove to be a worthy investment you can make to keep your company running strong.