Accidents can occur at your business when you least expect it and you may incur significant losses. This is where small business insurance comes in. It can help cover the damages. If you are a business owner who is still reluctant to get your business insured, keep on reading this article as we give you some of the reasons you should buy business insurance today.
- Business insurance is required by the law
Most states usually require small business insurance. But even if your state doesn’t require business insurance, you should view it as a necessity. Without it, your business risk losing a lot in case:
- A customer sues you after getting injured at your business premises
- A fire destroys your property or inventory
- A computer with your customer’s personal data on it is stolen
- Business insurance protects your employees
As a business owner, you should always have the interest of your employees at heart. They play a crucial role in facilitating the growth of your business. This should prompt you to get business insurance that protects them. Most states require businesses to have worker’s compensation insurance. If your employees sustain work-related injuries or illness, this type of insurance provides benefits such as:
- Medical care
- Missed wages
- Funeral benefits
It is worth mentioning that worker’s compensation offers different protection from unemployment insurance programs.
- It protects your customers
Business insurance not only protects your employees but also your customers. If you have a Business Owner’s Policy [BOP], it can help cover your customers. The BOP policy combines property and business liability coverage into one to help protect your business from:
- Personal and advertising injury
- Property damage
- Bodily injury
- Product liability
If, let’s say, one of your customers slips and breaks their leg and they need medical attention, your BOP will cover the medical costs. Additionally, there is also data breach insurance that typically helps protect your business and customers in case of a security breach. This coverage pays for:
- Public relations
- Identity protection solutions
- Legal fees
- It helps build credibility
If you thought that your business insurance can only protect your business, you are wrong because it can do more than that- it can help build credibility. When you have the right insurance policies, it shows your customers or any other people you are doing business with that you are taking risk management seriously. When customers know that they are well protected from accidents or any other thing, they will trust your business more. And if they trust you, they will always come back.
- It can protect you from lawsuits
We live in a litigious society. Any business can face a lawsuit. If that happens, and the business lacks insurance, it can hurt the business’ finances. A lawsuit can be due to a broken contract, an accident, or a disgruntled employee. This is why having business insurance is important. It can help cover the costs. For instance, if you have an injured employee who has sued you, your worker’s compensation insurance will help you pay the legal fees, thus protecting your business finances.