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The Importance of Insuring a Business

According to the latest research, only 54 percent of small businesses have general liability insurance, which most people consider to be the bare minimum small business insurance policy.

The Importance of Insuring a Business

Do you have insurance for your business? If not, read on to learn more about the importance of ensuring a business.

If you’re confused about the different insurance options available to you, we’ll also share some insights to help you make the right decision for yourself and your team.

Why Ensuring a Business Is Necessary

There are lots of reasons to look into insurance for businesses, no matter what kind of company you run.

Do you need a little nudge to move forward with insuring your business? If so, here are some benefits to keep in mind:

Comply With the Law

In the United States, businesses are required by law to have certain types of insurance, including workers’ compensation insurance (more on that later).

If you have employees who work for you and you’re not investing in insurance to cover them in case an accident happens, you could find yourself in a sticky situation later.

To protect yourself from potential lawsuits, make sure you have at least the bare minimum when it comes to insurance.

Protect Your Business

Insurance helps to protect your business and your assets. Think about it. If a major storm hit your building today and destroyed your equipment, would you be able to afford to get it replaced?

Would you have to take out massive loans or rack up a bunch of credit card bills to keep your company up and running?

Business insurance helps to protect you and your company in these instances. It also reduces the likelihood that you’ll have to close your doors altogether.

Increase Your Credibility

Investing in insurance for the company and your employees can add credibility to your business. It shows people that you play by the rules and aren’t trying to cut corners when it comes to their health and safety (and the longevity of the company).

Protect Your Employees

Insurance helps to protect your employees, too. Workers’ compensation insurance ensures that, if something goes wrong while they’re on the job, they can get the care they need right away.

Comply with Contracts

Certain contracts may require you to have business insurance.

For example, your rental agreement for your office building might require general liability insurance. If you borrow money for equipment or building renovations, the lender may require insurance, too.

Generally speaking, it’s better to get ahead of these requirements so you’re not scrambling at the last minute.

Attract and Retain the Best Employees

Employees are attracted to jobs that offer good insurance coverage. They’re also more likely to stick around long-term.

In addition to insurance that protects your business and assets, look into policies that protect your employees and give them the support they need. When you take care of them, they’ll be more inclined to take care of your company and your clients by putting their best foot forward and remaining with the company.

Types of Insurance for Businesses

From general liability insurance to accident health insurance, there are many different types of insurance you can invest in for your business. Here’s a breakdown of the most common policies business owners purchase most often:

General Liability Insurance

General liability insurance protects your business from a variety of claims.

For example, if someone claims that your company caused bodily harm to someone else or damaged their property, general liability insurance protects you from having to foot the bill for these claims out of your own pocket.

This type of insurance can also protect you if you get into a sticky situation involving personal injury, libel, or slander.

Commercial Property Insurance

Commercial property insurance protects the building in which you run your business, as well as your equipment.

Commercial property insurance can cover damage from storms, fires, and even theft. It’s important to note, though, that it does not cover damage caused by earthquakes or floods. You’ll need to invest in additional insurance policies to cover those issues.

Business Income Insurance

Business income insurance helps to protect your business if you have to close your doors temporarily. If you go through a period where you can’t generate income because you’re dealing with repairs or other issues, business income insurance can fill in the gap and assist with ongoing expenses, including payroll, rent, utility bills, etc.

Workers’ Compensation Insurance

As we mentioned above, workers’ compensation insurance is designed to cover medical costs for employees who are injured on the job. If someone gets hurt at work, this insurance allows them to get the care they need without having to pay out of pocket (and without you having to pay out of your pocket).

Commercial Auto Insurance

If you have a business vehicle (or vehicles), commercial auto insurance is a must. It protects you and your employees if they get into an accident while driving on the job. In most cases, this type of insurance covers both bodily injury claims and property damage claims.

Employee Health Insurance

Finally, look into a good employee health insurance plan.

Technically, as a business owner, you don’t need to offer health insurance to employees unless they work for you full-time.

However, even if you’re not to a place where you’re hiring full-time workers yet, it’s still a good idea to think about the type of health insurance you want to offer when you do reach that point.

As your company grows, a generous benefits package will make it easier for you to attract the right kind of employees and encourage them to stick with you for years to come.

Get Insured Today

Now that you know more about the benefits of insurance and why insuring a business is important, it’s time to start searching for the right policy.

Conclusion

Keep the information above in mind so you can get the best coverage for your company and your team.

Do you want to learn more about business insurance? If so, head to the Tools and Resources section of our site today.

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