Small businesses face numerous risks and would be better off having insurance than not. If you are the owner of one of these small businesses, you are already aware of the amount of work involved in running a company. Would your business be secure if something unforeseen occurred? Small businesses are at risk because they don’t all have the necessary insurance.
1. Business Insurance Is Required By Law
Small business insurance is usually required by states. But even if yours doesn’t, you ought to think about it. Benefits from business insurance may shield you from financial loss. Without it, your company may run the following risks:
- A customer sues you after getting hurt at your place of business.
- A fire destroys your building or inventory.
- A computer with your client’s personal information on it is stolen.
2. Business Insurance Protects Your Employees
Employee compensation insurance is one type of commercial insurance that most states mandate. It offers benefits like medical care, lost wages, or funeral benefits if your employees get sick or hurt at work.
3. Business Insurance Builds Credibility
Your business insurance does more than protect your business. The right policies demonstrate to your clients and vendors how seriously you approach risk management. Additionally, it conveys to everyone that you’ll offer the proper defense, regardless of the nature of the mishap.
4. Business Insurance Can Help Recruit and Retain Employees
Employees look for more than just a salary as they search for jobs. They’re also looking for the right benefits, like life and health insurance. Businesses without insurance often miss out on attracting and retaining the best employees.
5. Business Insurance Protects Management
Your management liability insurance can protect the owner or other important manager of your company from exorbitant legal fees. Employees of publicly traded companies and nonprofit organizations may benefit from management liability insurance. You can typically include this insurance in your BOP policy.
6. Business Insurance Protects Against Natural Disasters
Natural disasters like flooding, fires, tornadoes, hurricanes, and lightning affect the majority of states. This insurance is crucial for safeguarding the property and belongings inside your company in the event of a disaster. To help shield your company from floodwater damage, you can also find out more about our flood insurance.
7. Business Insurance Helps with Lawsuits
Any business could be sued and have to pay legal fees. You need business insurance, among other things, to help with the expenses. For instance, your workers’ compensation insurance may contribute to the cost of the defense if an injured employee files a lawsuit against you. Additionally, employees’’ compensation can serve as disability insurance and pay benefits if the injured worker develops a disability.