Though it is an intangible product, there is real value in having good insurance coverage for your business. There are certain inherent risks that are associated with running a business. An employee could suffer an injury, property damage could result from a natural disaster, or you could be sued for error.
To protect yourself, employees and business against unwanted claims, business insurance is necessary. Let’s look at 5 reasons to have good business insurance in more detail.
1- The Law Requires It
There may be specific types of business insurance that you are legally required to obtain. According to the U.S Small Business Administration (SBA), “the federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance,” and “some states also require additional insurance.” It could be costly if you fail to obtain the legally required insurance coverage.
In fact, the consequence may far outweigh the cost of the insurance policy itself. Stick to the law and avoid exorbitant fines, civil or criminal penalties, as well as the possibility of exclusion from favorable public contracts.
2- Safeguard Against Lawsuits
It would be erroneous to think that even your best client would not sue you if dissatisfied with the service or product you have provided. Litigation can either protect or identify liability and lawsuits are not without certain effects-effects that can be ruinous to your business.
If an accident injures an employee, a contract gets broken, or an employee becomes disgruntled for one reason or another, you could be looking at a lawsuit. The cost of legal defense alone could put you out of business, even if you win in court. A business liability insurance is just what you need to weather such a potential storm.
3- Protect Investment- Equipment, Property, and Inventory
Infrastructure of some degree is typical of many businesses in order for successful operation. You can protect the items and space that you need to keep your business afloat. Your property could become damaged by vandalism, stolen, or lost, and old equipment might need to be replaced and new inventory needed to keep your business running.
Good business insurance coverage offers protections that could offset these kind of events that could affect your bottom line. Property, equipment and inventory are all important to keeping your doors open.
4- Protect Your Employees
Employees come with added responsibilities, and you will find that workers’ compensation insurance is one type of coverage that you are legally required to have, depending on the state where your business resides. Insurance coverage is necessary to protect your employees in case of an accident that could result in a disability or loss of wages.
By protecting your employees’ interests, you in turn, protect yourself by removing the financial burden of any claim from your business.
5- You’ll Have Peace of Mind
When you can reduce your business risks by securing good business insurance, you can rest easy that your business, assets and employees are protected. You cannot control every event that could affect your business, nor predict the future, but you can take responsible action in the form of a solid business insurance coverage that will grant you the peace of mind that you need to focus on running your business. At Equify LLC you can learn about how insurance coverage is essential to the success of your business.
The Bottom Line:
Good business insurance coverage is the right thing for any business. With liability coverage, employee protection, and other necessary insurance coverage, you can protect your assets, enjoy overall peace of mind and secure the longevity of your business.