Running a business comes with all sorts of risks. An employee could get injured while at work, a client could file a suit, or a natural disaster could destroy property. These in conjunction with many other reasons are why it is important to protect your assets in both a business and personal sense. The best way to do this is to make sure that you and your business are adequately insured. Read on for six compelling reasons that are sure to convince you to ensure your business.
1. It’s The Law
It is required that workers’ compensation, unemployment, and disability, depending on the state where the business is located are all paid for and employee details are up to date.
Failure to carry legally required coverage could result in fines, and even criminal penalties. Exclusion from public contracts and “cease and desist” orders are also a possibility that could cost you far more than the price of an insurance policy.
2. You Could Get Sued
Without insurance, your business could collapse in the event of a lawsuit or liability claim. All it could take for this to become a reality is a single accident, a broken contract, or even a disgruntled employee, and it’s over. Even if you are lucky and win the lawsuit, you could go out of business due to legal team costs alone.
Liability insurance gives you peace of mind rather than have you worrying about what could happen. This enables you to concentrate on running a successful business, which is what truly matters. The professionals at www.staebler.com stress how important it is for you to remember that “you don’t need to be a millionaire to be sued like one.” Protect the income you and your employees rely on. Your personal insurance is not enough to cover all of you.
3. Keeps Your Business Up and Running
What happens to your business in the event of a natural disaster? In insurance language, an “Act of God” is an accident or event not caused by human hands and can include things such as floods, tornados, hurricanes, and fires caused by lightning.
This is where Business Owners Insurance comes in. It is able to help a business survive a serious disaster by insuring it against loss of income.
It works by the insurer paying the insured business owner the income the company would have made while it is out of action. This is all assuming that it is due to a covered loss. It also compensates for normal operating expenses such as rent and regular business utilities that would have otherwise been incurred during that time. Protection can sometimes even include coverage for employees and pay for them for up to 12 months.
4. Makes You Look Credible
Having insurance is one of many ways that make a business look more credible. Business insurance shows potential clients, customers, and employees that you are a safe option. You are able to compensate someone if things were to go badly in any way.
5. Protects Your Employees
The most valuable asset you have is your employees. They are more valuable than the products or services you offer, the equipment you take care to maintain, or even the brand you have spent years building. As such it pays to protect them well in the event of an accident, however unlikely it might be to happen.
As stipulated earlier the law requires that you carry workers’ compensation, but you should also consider offering disability coverage. Even if you have to charge your employees for a portion of the cost, rather offer it to them in a subsidized way than not at all.
6. Guards Human Assets
As the owner, it is your responsibility to keep the business running. What happens if you are unable to run it due to an accident or some other unfortunate circumstance that pulls you out of the picture for an extended period of time?
In the event of your death or disability, company-owned life and disability insurance coverage provide funds for the purchase of your interest under a buy-sell agreement. You can also buy such policies to cover the disability or death of a valued employee called “key man” policies.
No one can predict the future. No one can guarantee that natural disasters, injuries on the job, or lawsuits never occur and for that reason alone, it’s a good practice to be insured. With the proper insurance, business owners can have peace of mind and focus their attention on operating a productive, profitable, and personally rewarding business.