The Importance of Having Good Business Insurance
If you own your own business, you’re aware that there are some essentials you need to not only run things smoothly, but also to take care of your employees. For every business, it’s essential to have business insurance to protect your assets. You need to make sure you, your employees, and your business are adequately taken care of, and to always prepare for the future.
These are the top reasons why it’s important to have good business insurance. Submitted by our friends at California Insurance Finder
- It’s the Law
As you start up your business, look into both federal and local rules and regulations. Businesses may be required to have certain types of insurance, and not just to protect your property, but to protect your employees as well. Required insurance includes worker’s compensation, unemployment, and disability, depending on the state you are located in. Failure to have required coverage can lead to penalties, fines, exclusion, and other punishments, which can hurt your reputation and your success in the long run.
- It’ll Keep Your Business Up and Running During a Natural Disaster
What would happen to your business if it was impacted by a hurricane or flood? Some insurance covers loss of property, but you should also take into consideration the money you’ll lose as your business is unable to operate. Business Owners Insurance (also known as BOP) can play a critical role here, as it helps protect businesses against loss of income, as long it’s due to a covered loss.
- You May Be Sued
If you don’t have insurance, you may lose your business due to a lawsuit or a liability claim. One accident, broken contract, or frustrated employee could create a blow that your company can’t recover from. Even if you win the suit against you, you could potentially still go out of business because of the legal costs. Liability insurance helps you protect your business against this and helps you ensure that your business survives any claim.
- Insurance Helps You Look Credible
Many people are suspicious of working for, or employing the use of, a business that doesn’t have insurance. Insurance will show your clients or customers that you’re safe and you care about doing things properly. It’ll also reassure them that if anything goes wrong while they’re working for you or with you, you’ll have a way to compensate them.
- It Helps You Attract and Keep Employees
Many people look for jobs that offer beneficial and attractive packages, not just ones that offer good pay. Beyond protecting your business from negative scenarios, having insurance also can have the positive benefit of attracting good employees, and helping you provide reasons for those employees to stay. In fact, second to salary, job seekers look for benefit packages that offer health, disability, life, and long-term care insurance. If you don’t offer these, you could lose a potentially good employee to another business.
- It Protects Those Employees
At the end of the day, the most valuable asset to your company isn’t your products or services, your equipment, or your brand: it’s the people who work hard to provide those services and maintain that brand. It pays, in the long run, to protect your employees when it comes to potential accidents. It’s often required by law that you carry worker’s compensation, but you should also consider offering disability coverage to your employees. Taking care of your employees and protecting their interests protects you in turn in the long run, as it helps avoid lawsuits or liability claims.
- Some Contracts May Require It
If you rent or lease the facility where your business is located, you may be required to carry insurance if the landlord’s policy doesn’t cover it. If you borrow money to finance your business, whether it’s for the building, equipment, or operations, the loan agreement will likely include an insurance requirement. And some client contracts specify that you carry insurance, in case things go wrong.
- Ultimately, You Can’t Predict the Future
Business owners try to prepare for everything, but the bottom line is, things happen. Natural disasters, injuries on the job, and lawsuits are things you hope will never impact your business, but they might, and for that reason, it’s best to be insured.
If you are in the area, please stop by our office