When you’re thinking about starting a business or if you have your own business, insurance is an essential feature. This article will depict why you should get business insurance, especially if you own a business already because if you don’t have it then you’re breaking the law.
Also, of course, you’re running a ton of risks when operating a business, an employee can get injured, clients or the injured employee could file a lawsuit. It’s always extremely important to protect your assets, and not just to protect your assets though, for those and other reasons having business insurance is a great way to protect you and your company.
It’s the law.
According to the Small Business Administration, it’s the law that a business is required to provide particular types of insurances. Some of these types of insurances include workers’ compensation, unemployment, and disability depending on where you’re located. If you decide to run a business without insurance that will put you at serious liabilities. These can range anywhere from fines, exclusion from public contracts, civil and criminal penalties. This can all be avoided by getting insurance coverage for your company, so think to yourself if it’s worth paying for business insurance or losing your business entirely.
You could be sued.
A huge problem that could arise without business insurance is that someone can take legal action against you, be sure to pick the right type of insurance. For instance, if your the business owner of a glass repair company for commercial buildings then you will want professional liability insurance. You’ll want this insurance because say something like a glass storefront door were to come dropping down during a replacement job and the small business owner didn’t have liability insurance then he can be sued by his employee. But, with insurance, the business owner’s insurance will cover whatever property damage and physical damage the glass storefront doors caused. Besides, who would want to deal with the legal fees?
Keeps your business running.
Without business owners insurance or (otherwise known as BOP) you could entirely lose your business. Without BOP, you’ll have the exposure of losing your business due to a natural disaster. While property and casualty insurance will cover the loss of buildings, equipment, tools, and other items. While property coverage is great, BOP is the only way your business will survive a catastrophe. The way it works is the insurer pays you for the time your business was out of action. This will also compensate for rent and utilities.
Protects and covers your employees.
If your either opening a small business or have a big one, your most valuable asset isn’t the products you service or sell, it’s your employees. You wouldn’t have anything to offer and there would be no specialists to provide any labor. You’ll want to be sure to protect them at any cost. Be sure to have insurance for your employees so you can provide them with workers’ comp. The law requires you to provide that for them, also consider disability coverage. By protecting your employees, you’re also protecting yourself from liability claims or any lawsuits.
Try to guard human assets.
You never know what is going to happen in life. As a business owner, you are the storefront, you run the show. But what if something were to happen to you and you couldn’t provide those professional services that you offer? Maybe there’s a chance it’s only for a few days. But what if it’s weeks, months, or even years? Then you’ll want to get company-owned life and disability coverage. In case you were too pass on or become disabled, it allows funds for your interest under a buy-sell agreement. You can also get policies that are referred to as “key person” insurance to cover an employee in the same way.