If you are on way of establishing your business entity, then insurance is very important, there are plenty of reasons you need business insurance coverage for your company.
According to the Hart Fold, these are the 10 reasons that you need business insurance;
1. Business Insurance Is Required By Law
Most states require small business insurance. However, even if yours doesn’t, you should still consider it. Business insurance benefits could protect you from financial loss. Without it, your business may face risks if:
A customer sues you after getting hurt at your place of business.
A fire destroys your building or inventory.
A computer with your clients’ personal information on it is stolen.
2. Business Insurance Protects Your Employees
One business insurance coverage that most states require is workers’ compensation insurance.* If your employees suffer work-related injuries or illnesses, it provides benefits like:
Medical care
Missed wages
Funeral benefits
It’s important to know that workers’ compensation offers different protection than unemployment insurance programs.1
3. Business Insurance Protects Your Customers
Your business insurance can also help cover your customers if you have a Business Owner’s Policy (BOP). These BOP policies combine business property and business liability coverage into one to help protect your business from:
Property damage
Personal and advertising injury
Bodily injury
Product liability
For instance, if one of your customers slips, breaks their leg and needs to go to the hospital, your BOP can help pay for their medical costs.
There is also data breach insurance to help protect your business and customers if a security breach occurs. For online businesses, insurance can help pay for:
Identity protection solutions
Public relations
Legal fees
Liability
4. Business Insurance Builds Credibility
Your business insurance does more than protect your business. Having the right policies shows your customers and contractors that you take managing risk seriously. It also helps communicate to everyone that you’ll provide the right protection, no matter what accident occurs.
5. Contracts May Require Business Insurance
Businesses like yours make contracts all the time. So, it’s important to be aware that many contracts require insurance protection. Some examples include:
Renting a building from your landlord
Borrowing money to finance goods
Loan agreements
Clients agreements
6. 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.
7. Business Insurance Protects Management
Your management liability insurance can help cover the owner, CEO or “key person” that runs your business from costly lawsuits. Management liability insurance can help protect those working for nonprofit organizations and publically traded companies. In most cases, you can add this type of insurance to your BOP policy.
8. Business Insurance Protects Against Natural Disasters
Most states suffer from various natural disasters, like:
Flooding
Fires
Tornados
Hurricanes
Lightning
This insurance is important for protecting your business’ assets and the possessions inside it if a disaster strikes. You can also learn about our flood insurance to help protect your business from floodwater damage.
9. Business Insurance Helps with Lawsuits
What Insurance Do I Need for My Business?Every company can get sued and face legal fees. One of the reasons you need business insurance is to help cover the costs. For example, if you have an injured employee that sues you, your workers’ compensation insurance can help pay the legal fees. And, if that injured worker ends up with a disability, workers’ compensation can act as disability insurance and provide them with benefits.
10. Business Insurance Offers Peace of Mind
When Do You Need Business Insurance?One question we’re often asked is, “Why do I need business insurance?” Our specialists can help answer this every day. They can guide you through each of our insurance coverages and decide which property and casualty insurance policies fit your needs.