One of the business owner’s primary responsibilities is to protect their business, along with the employees. It is not only a wise thing to do but also a guarantee that the company will be protected when something unexpected and unfortunate happens.
We have listed below some top reasons why you should get insurance for your business.
Why Should You Insure Your Business?
It’s because the law says so.
According to the Small Business Administration, businesses are required by law to get different types of insurance, such as unemployment and disability insurance and workers’ compensation.
Failure to comply will result in consequences that are far more expensive than insurance coverage.
If you find yourself in a lawsuit resulting from a workplace accident or a disgruntled employee, liability insurance helps you focus on running your business successfully without having to worry about legal damages and expenses which can run your business to the ground.
It keeps your business going.
If a calamity strikes and leaves your business incapacitated and non-operational, a Business Owners Insurance, or BOP, can protect you against loss of income.
The insurer pays you the amount your business would have made during the time that it is closed. Some policies even cover a year’s worth of employees’ salaries.
It gives you more credibility.
Having insurance builds trust among your clients and customers. That shows them that you’re a safe bet for them and that if something unpleasant happens along the way in the job that you do for them, you have the means to compensate.
It protects workers and employees.
As stated earlier, the law requires you to protect your employees by having worker’s compensation in place. On top of that, you should also have disability insurance for your employees. Understand that this is not an expense but an investment since your most valuable asset as a business owner is not your products or services — it is your workers.
Acts of God are inevitable.
Acts of God, in insurance language, pertain to accidents and disasters not done by human hands — tornadoes, floods, earthquakes, and other natural disasters.
Property and calamity insurance keeps you covered from losses from these events.
It protects human assets.
As the business owner, it is your responsibility to keep the business running. But what happens when you stop running and you can’t fulfill your duties for weeks, months, and even years?
A company-owned life and disability insurance help make payments to cover the losses generated by your absence.
It attracts employees and helps retain them.
Employees are looking for companies that have their best interests in mind. Offering benefits packages that include life, disability, health, and long-term care insurance helps attract potential employees and prevent existing ones from making the jump to another company.
Contracts require one.
Doing business with others will require contracts, and some, if not most, of these contracts need you to have insurance. For instance, client contracts look for insurance as a security that if things don’t go well, you have something to fall back on to compensate them. Another example is lenders usually require business insurance before approving any loan.
The future is unpredictable.
Given the reasons stated above, no business owner can tell what will happen and when it happens. Because of life’s unpredictability, business insurance gives you peace of mind against the uncertainties of the future.
Give your business the protection it deserves by getting it insured. It is the most prudent and most responsible thing any business owner should do to protect his asset.