When it comes to running your own business, there are certain things you simply can’t go without, insurance being the major one. You absolutely need business insurance to protect your company, and some states and city governments even require it before allowing you to open your doors. You might think that at your company, no mistakes will be made, and thus, no one will be put in danger. Unfortunately, reality states the complete opposite. But mistakes and accidents are unpredictable, and bound to happen no matter what precautions you take. Here are some ways business insurance protects you.
Reduces Your Liability
No matter the structure of your workplace, whether it’s an office-only layout or traditional retail, you will always have liabilities. So what are liabilities? These include anything that can get your company sued. For example, if you place a large statue in your lobby, and it falls on a child, you may be liable and get sued. Thus, it is your responsibility to procure business insurance to not only reduce your liability, but also to protect the company’s image as well as your personal and business assets. According to eHealth, there are different kinds of liability insurance, so make sure you do your research and find the types that cover what your business needs.
Protects Your Employees
Again, no matter what type of workplace you are running, risks are still present. One of the most common issues involves your employees. If they are working on ladders or simply moving documents around, there is a chance of injury. These types of injuries then warrant some sort of compensation for missed work. According to Darras Law, workers’ compensation insurance is mandatory in most states and helps protect your employees from lost wages. In addition, a vast majority of states require business owners to have workers’ compensation insurance on hand in order to reduce litigation time and provide workers with almost instant financial security for their time off work.
Helps You Get a Loan
One of the most overlooked reasons for getting business insurance is due to the fact that banks also want to feel protected. When a bank offers you a loan, one of the first things it will ask is if you have the proper business insurance. This is because banks want to know that even if something bad happens to your company, such as a lawsuit or a fire, it will survive long enough to repay the loan. So if you are inquiring about a business loan to start or expand your organization, be prepared with your business insurance information.
If you are starting your own business, insurance must be at the top of your list of things to do. Not only can this save your business in the event of a lawsuit or another type of emergency, but it can even help it expand. Thus, it is important to adhere to the list above in order to make sure that your company is fully covered.