Do I need business insurance? We believe the answer to that is YES!
Here are the top 5 reasons you need business insurance. We'll go over the other 5 in our next post.
Why Do Businesses Need Business Insurance?
Business insurance is essential for helping protect businesses from the costs of damages that would otherwise be paid out-of-pocket. For instance, business insurance will cover damages from theft and lawsuits. It will also help replace injured workers’ lost wages when they are unable to work.
There are a variety of business insurance coverages available including:
- Commercial Property Insurance
- General Liability Insurance
- Business Income Insurance
- Data Breach Insurance
- Workers' Compensation Insurance
Investing in business insurance will not only protect your business from damages that occur; it will save you time and energy. Below are the top 10 reasons why you should consider business insurance:
1. Business Insurance Is the Law
Most businesses in the U.S., including small businesses, need business insurance. For instance, according to the Small Business Administration (SBA), if you hire employees, you will need to have workers' compensation insurance.* States also have different requirements for business insurance you will need to pay attention to.
For some, business insurance may seem like an unnecessary expense. However, ignoring business insurance requirements can have devastating effects on your business.
Small businesses that do not have business insurance are at risk of suffering devastating financial losses. These losses can come in the form of:
- Being sued when a customer gets injured at your place of business.
- Fire destroying your small business building or inventory.
- Theft of your client’s personal information.
2. Business Insurance Protects Your Employees
Small business insurance helps protect your business and your employees. Most states require that you have Workers' Compensation Insurance.* This insurance coverage provides benefits to employees for work-related injuries or illnesses including:
Medical care. For example, say your employee trips, falls, and injures their ankle. Workers' Compensation Insurance will help pay for the costs of their medical care.
Help replace lost wages. For example, say one of your employees injures their back on the job and has to take a month off to recover. Workers' Compensation Insurance can help cover the cost of their lost paycheck during the month long period.
3. Business Insurance Protects Your Customers
Business insurance can help protect your customers with a Business Owner’s Policy (BOP). These policies combine business property and business liability insurance into one policy. They help protect your business from the costs of damages from things like fire, theft, or other covered disasters. They also help protect your business from property damage, personal and advertising injury, and bodily injury. For example, say a customer slips, falls, and breaks their leg. As a result, they require a trip to the hospital. Your BOP policy can help cover the costs associated with the accident.
In addition to a BOP policy, there is also Data Breach Insurance that can help protect your business. Data breach Insurance helps cover costs associated with a data security breach involving identity protection solutions, public relations, legal fees, liability, and more. Data Breach Insurance not only covers a data breach, but it restores the public’s confidence in your business because quick action was taken to restore the data.
4. Business Insurance Builds Credibility
Business insurance helps protect your business while also building brand credibility. Business insurance coverage shows your customers that you take managing potential risks seriously.
In addition to customers, business insurance can build brand credibility with those you do business with such as contractors. The right insurance communicates to everyone your business encounters that you will provide the proper protection no matter what accident occurs.
5. Contracts May Require Business Insurance
Businesses form contracts all the time. However, it’s important to be aware that many contracts require insurance protection. Examples include:
- Contracts with a landlord if you are renting a building.
- Contracts that outline borrowing money to finance goods.
- Contracts that outline loan agreements.
- Contracts with clients.
So there are more reasons? Yes there are. Watch for this in out next post. These are 5 great reasons why you need business Insurance.
Keeping you protected.
All Access Insurance in Littleton, CO, who represents multiple insurance companies as a “Broker” and provides products for auto, home, commercial, workers compensation, and much more! Call us today for a free quote at (303) 932-1700.