7 Reasons Why You Need Business Insurance
Ever since you opened your doors for business, there is one important item you’ve been putting off: insurance. You know it’s a good idea and responsible thing to do, but that doesn’t make it any less daunting of a prospect. There’s the cost and time commitment–and let’s not forget figuring out if you’re getting the best deal possible on what you need.
Businesses fail because they lack great products or services; most businesses fail because they don’t have healthy cash flow. Since cash flow is such an essential part of running a business, wouldn’t it be smart to protect your hard-earned money with something as simple as insurance? Having good coverage can help prevent financial bumps in the road and keep your company stable.
If you answered yes to any of the above questions, here are seven reasons why you need business insurance :
1. Protects the Business Owner’s Personal Assets
This is probably one of the most common reasons that businesses get insurance–and for good reason. If your company fails and creates a large debt that creditors cannot manage, your personal assets like your home or car could be at risk if you didn’t consider proper coverage beforehand.
2. No Cash Flow = No Company; Good Coverage Can Help Preserve Your Cash Flow
Having enough cash flow is essential for survival in business, and many entrepreneurs cite having healthy cash flow as the biggest hurdle they face when starting a small business. Insurance can help protect against unforeseen circumstances and help your company stay afloat. If you get sued, business interruption coverage can sustain the company until things are back to normal (if they can get back to normal).
3. You Need Property Insurance
Your most valuable asset is most likely your physical building; it’s where customers come in contact with your product, and it’s where you house all of your stuff that makes up your business. Property insurance covers damage to physical structures and property that is tied into a building or structure like desks and computer equipment. Without this protection, you could be looking at a lot of financial trouble from something as simple as a storm blowing off the roof or thieves stealing expensive equipment from your office overnight.
4. Protecting Against Liability Scenarios
A big part of your property insurance might be liability protection. If you conduct business transactions on location, clients and customers could potentially sue for damages after an accident at or around your place of business. If someone gets hurt and it’s both their fault and yours, general liability coverage can protect your assets from being liquidated to pay off a large settlement.
5. Medical Insurance and Disability Coverage
Although these types of coverage aren’t as common in policies for small businesses, they are still important to consider! Having medical insurance means that if someone has an accident at work not related to machinery or heavy lifting–like a paper cut–they may be provided care through the company. You could also think about disability coverage that provides an income if you or an employee becomes sick or injured.
6. Workers’ Compensation for Employees
This type of insurance covers medical expenses and lost wages for employees who are hurt on the job. It can be a lifesaver, especially if your business is made up of people who don’t have health insurance but need medical help.
7. Travel Insurance or Policies to Protect Your Employees When Working Out of Town
If some of your staff works at home while others are out on jobs for weeks at a time, purchasing travel insurance policies that will cover each person’s travel needs can be worth it in the end. Not only does this protect them from unforeseen accidents, but it also protects you as their employer. You wouldn’t want to have to pay for all of their hotel expenses out of pocket in the case that something happens while they’re away on the job.
Ever since you opened your doors for business, there is one important item you’ve been putting off: insurance. You know it’s a good idea and responsible thing to do, but that doesn’t make it any less daunting of a prospect. There’s the cost and time commitment–and let’s not forget figuring out if you’re getting the…