It may be tempting to assume that you don’t really need commercial insurance as a small business owner. But nothing could be farther from the truth. Even if your business is relatively safe, with a low probability of workplace hazards, or you put measures in place to keep your employees and customers protected. Insurance coverage may be the difference between recovering from a terrible situation or losing your entire business.
So, if you are of two minds about getting commercial insurance, or are contemplating getting bare-bones coverage instead of a comprehensive one, read on. In this post, we shine some light on why business insurance is important and why it’s prudent to get as much cover as possible.
-
Commercial insurance protects you and your business
In the case of theft, workplace accidents, or lawsuits; commercial insurance protects your business. Say your company suffers a break-in, a data breach leads to the exposure of confidential information, or an employee gets injured at work. You could be looking at damages in 6/7 figures. If you don’t have coverage, all that money comes out of your business.
Now, to some extent, you can set up your business in a way that minimizes the chances that one of the above happens. But what about natural disasters like flooding or wildfire? There’s little you can do to prevent them from happening, and without good coverage, it may spell the end of your business.
-
It protects your employees and customers
Another reason to get business insurance is for your workers and customers. If an accident happens, your employees know they have cover for medical expenses and missed wages. This positions your company as a good place to work, and it increases staff satisfaction.
Additionally, with commercial general liability insurance, you can ensure that all customers are covered in case of injuries, product liability, and property damage. And if your company processes customer data, it may be necessary to add data breach insurance to protect against security breaches.
-
Insurance coverage signifies that your business is reliable
On a similar note, holding a strong insurance policy increases the credibility of your business in the eyes of customers and contractors, and they know that if anything happens, you have adequate protection. Potential employees also see your company as staff-friendly, and you attract the best talent in the market.
-
Some contracts require business insurance
As a small business owner, you’ll need to sign contracts all the time. Now, a lot of these contracts require that your business be insured. The type of insurance you need depends on the agreement being signed. For example, a lease from your landlord may come with the caveat that your business is insured against fire or flooding, and a loan agreement may require even more comprehensive coverage.
-
It’s required by law in most US states
Finally, perhaps the most crucial argument in favor of getting business insurance is that it’s required by law. The United States federal government mandates that every business with employees has workers’ compensation, disability, and unemployment insurance. On top of these, nearly all states in the US require one type of insurance or another. What kind of coverage you need depends on the state and the nature of your business.
So, what type of insurance will your company need? Well, you can start your research from your state’s website and work your way down from there. Alternatively, you could send an email with any questions you have to cory@semelriskconsultants.com or click this link to schedule a consultation directly with a business insurance expert.
