There are plenty of responsibilities that go along with owning a business. Although your main concern is making money, you also are responsible for the safety of every person who sets foot in your business. Business insurance will help if something happens in the building or the property.
Taking out a business insurance policy will save you money, time, and stress. It will also protect your business from damages and provide benefits to your employees.
We spoke to Smart Business Insurance and if you still aren’t sure whether business insurance is worth the cost, they said to consider and understand the reasons why it is so important.
It Is Required by Law In Many States
In most states, it is against the law not to carry business insurance. For example, every state in the U.S. except for Texas requires all businesses with employees have workers compensation insurance. If you have business-owned vehicles, you are required to have commercial auto insurance. If your business provides certain professional services, professional liability insurance is required by law. Finally, if your business sells liquor, you are required to have liquid liability insurance.
If you don’t have the legally required insurance, you are putting the future of your business at risk.
It Protects Your Employees
One type of insurance that is essential is workers compensation insurance. If an employee is injured on the job or gets sick because of something work-related, the insurance will cover their lost wages and medical bills. It will also cover their disability payments if an employee’s injuries are permanent. If an employee dies while on the job, workers compensation insurance will cover the funeral and any other expenses associated with their death.
Protects Your Customers
You have a responsibility to keep your customers safe, and a Business Owner’s Policy can help. If a customer is injured in the building or on the property, the insurance will cover their medical bills, lost wages, and pain and suffering.
If there is a data breach and your customer’s personal information is stolen, the insurance will provide identity protection solutions. It will also cover the cost of public relations services to prevent your business’s image from being damaged. It will also cover any legal fees and liability associated with the data breach.
Builds Your Credibility
Business insurance does more than protect you and your business. It also shows customers and any contractors that you work with that you take risk management very seriously. Carrying a business policy will show people that you want to provide protection, improving your credibility and the credibility of your business.
Many Contracts Require Business Insurance
Contracts are part of many businesses, and many contracts require a business policy before the contract can be signed and for it to be valid. For example, if you rent your space from a landlord, they will require you to carry a business policy before signing the contracts. If you borrow money for your business, the loan agreement will include the stipulation that you have a business policy. Finally, before you sign the client agreement, the client will likely expect you to have a business policy.
Helps Recruit and Keep Employees Long-Term
When people are looking for a job, they are interested in more than the salary. The benefits package is also essential. If you offer health insurance and life insurance to your employees, it will help recruit the best people for the job.
A business policy will cover you, your managers, and other key people if there is a lawsuit. For example, if an employee sues a key person in the company for harassment or wrongful termination, the insurance will protect them. It will also cover if litigation is brought against a key person in the company for an alleged wrongful act. A business policy will help if any key players are sued.
Business insurance covers natural disasters such as floods, tornadoes, hurricanes, lightning, and fire. If your building and everything inside are damaged due to a natural disaster and if you have lost inventory, a business policy will cover the loss, allowing you to keep your doors open after a natural disaster.
Peace Of Mind
One of the best reasons to purchase a business policy is for the peace of mind it provides. Knowing that your business is covered against lawsuits, damages, and other issues that could result in you closing your business for good. It will also ease your mind and allow you to focus your energy on revenue-generating projects rather than lawsuits resulting in financial problems.
Your business is your livelihood. It keeps food on your table and a roof over your head. A successful business will also give you a great sense of pride. The best thing you can do for the future of your business is to have a business insurance policy.