Going into business means getting insurance to cover employees, property, vehicles, equipment, liabilities and accidents. The benefits of having coverage go far beyond compliance. When you put the right policies in place, the health and even the profitability of your business can improve substantially.
Business Insurance Reduces Liability Costs
If you run your business from a physical location, general liability insurance is necessary to cover accidents. You can be as careful as possible keeping floors dry, walkways clean and parking lots plowed, but you can’t predict when a customer or employee might get hurt. Without liability coverage, any costs associated with accidents come out of your profits. In most cases, this type of insurance is required to open and operate a business.
Business Insurance Increases Client Confidence
The products and services your business provides can’t be guaranteed free of flaws. Professional liability insurance protects against problems or loss suffered by clients, and people are more comfortable doing business with a company willing to stand behind its offerings. This can increase profits both by bringing first-time clients back in the future and giving high-paying clients an incentive to choose you over a competitor.
Business Insurance Ensures Compliance
Laws regarding workers compensation and other small business insurance policies differ between states, but all have penalties for noncompliance. Fines add up fast, sometimes to the tune of hundreds of dollars per day, meaning your business could go under if you neglect to hold required policies.
Ignoring compliance also reflects poorly on your company and can turn away potential employees and customers. Make sure you understand the local laws and invest in the right policies to stay on in line with the law.
Business Insurance Prevents Losses from Property Damage
Equipment breakdowns, vehicle trouble and unexpected severe weather can all wind up costing your business a lot of money unless you have insurance. Coverage provides recourse when damage to or destruction of physical property of any kind threatens to halt business operations. Instead of worrying about how to pay for repairs, you can rest assured known the insurance company has the situation under control.
Business Insurance Preserves Brand Integrity
Property damage and loss cost time as well as money, and the longer your business is out of operation, the bigger the impact on your reputation. Consistency and stellar customer service are hallmarks of a reliable brand, but if you’re out of commission for months because you don’t have insurance to help you get back on your feet, customers will gravitate toward the competition. Insurance gives your business and its customers continuity to keep trust strong and relationships healthy.
When you’re ready to go into business, research the types of coverage required at federal and local levels. Get what’s necessary to open and operate, and talk with a small business insurance agent to discover if other policies exist to bring additional benefits. Make sure you get the right amount of coverage from each type, and your business will have the support it needs to thrive.