5 Reasons You Should Have Insurance for your Business
[This article was written by Samantha Higgins.]
When it comes to a comprehensive insurance policy, business owners are divided into two sides – the advocates who think of it as an asset and the naysayers who think of it as a liability. If you’re in the latter group, here are five reasons why you should consider it:
Follows the Mandates of the Law
Some states require that businesses with employees must have a particular type of insurance like workers’ compensation, disability, and unemployment. If you fail to carry out this legal obligation, it could result in steep fines and penalties. The worst-case scenario is getting hit with a cease and desist order where you are asked to stop operating because you broke the law. All of these, along with the downtime, will cost you a lot of money. It may be even higher than the price of an insurance policy. If you are not sure if you are covered, ask your state or seek help from an insurance provider. If you are out of state there is also commercial business insurance in Montreal and other areas whose companies can help with coverage for your business.
Wards Off Any Law Suit
The society is now litigious where people sue for every little thing. In case of a lawsuit or liability claim, without proper insurance coverage, your business can fold. All it takes is one nasty accident with a client that results in a fracture or one broken contract that you failed to do because your machine bogged down. These can all lead to the demise of your business. Even a disgruntled employee can end it for you. Lawsuits cost a lot of money, so even if you prove you are innocent, you will lose many on your legal defense. Rather than stressing over about what could happen to you, get liability insurance to give you the protection and peace of mind so you can focus on running your business.
Keeps Business Afloat
Natural disasters happen. Volcanic eruptions, floods, hurricanes, earthquakes, and tornadoes occur when you least expect them. Your property and equipment insurance will protect those. It will cover the loss of damages to your building and equipment. However, you must also consider the money you will lose while your business is closed. Naturally, it takes time to make repairs and modifications. You need commercial business insurance to help your business survive because it keeps you secure even if you lose your income. While your business is out of commission, your insurance provider will pay you the income you would have earned had you been up and running. The coverage can include ordinary company operation expenses such as rent, utilities, and more. You can go the extra mile and also protect the income of your team members for up to a year.
Boosts Company Credibility
Purchasing insurance coverage for your business gives you credibility and boosts your authority. When you have insurance, you prove to your clients and investors that they can count on you. Should something go wrong with the work you are required to do for them, they won’t suffer any losses, and you will always have the means to compensate them for the trouble. Some companies are very proud of this, so they always put this on their store-fronts or company vehicles. When clients, prospects, and your network see this, you earn their trust. In the world of business, trust equates to more sales, and it also has the power to foster loyalty.
Offers Protection for Employees
A business can only be as good as its employees. Contrary to popular belief, it is not your goods or services that are your most valuable assets. Even your million dollar machinery that you spend so much to maintain is not the be-all and end-all of your business. This hinges on your staff. They are your most valuable assets because, without them, no one will operate the machines, take product inventories, boost your brand, face clients, and more. Thus, it would be best if you made it a priority to protect them. Apart from workman’s insurance, consider disability insurance because accidents happen. It is your moral obligation to keep so you must keep them safe.
Having an insurance policy for your business offers peace of mind that it will stay financially afloat in the unfortunate event of a workplace accident, property damages, or lawsuit.
Samantha Higgins is a professional writer with a passion for research, observation, and innovation. She is nurturing a growing family of twin boys in Portland, Oregon with her husband. She loves kayaking and reading creative non-fiction.
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