You wouldn’t even contemplate going for a drive if you knew your brakes were in danger of failing. When you own a business, you need to have the same mindset when it comes to insurance. Here are just a few reasons why it is vital that you protect yourself and your company.
For starters, you need coverage because the law demands it. Any company having one employee or more is required to have liability coverage that protects the business, its employees and customers in the event that an injury occurs at the workplace. Even if you are running your operation out of your home office with the help of one or two employees, you are not exempt from this mandate. As a side note, don’t automatically assume that your homeowner’s package will cover you in this instance. Speak to your agent to ensure that everything is covered.
Another reason you need coverage also has to do with the people with whom you interact: your employees and your customers. In the case of the former, they need to be protected by workers’ compensation in the event that they become ill or injured as a direct result of the work they are doing for you. Having proper coverage assures that their medical bills and a portion of their salaries are paid while simultaneously protecting you from lawsuits.
When it comes to your customers, a good liability package will compensate someone if they slip and fall or are otherwise injured while on your premises. Should they elect to bring suit against you, your insurance will pay for the cost of your legal defense – up to your prescribed limit.
Just as the people who occupy your workspace must be protected, so too must your physical property. By their very nature, weather disasters, flooding and fire are unpredictable. Unfortunately, they can do a great deal of damage, sometimes so much so that a business cannot recover. Protect yourself from possible bankruptcy by having comprehensive property coverage that protects you in the event of theft, flooding and natural disasters.
Many times, simple property insurance just isn’t enough. If the worst happens and your workplace is shut down for an extended period of time to repair damage, you will lose precious profits day after day. That’s where business interruption coverage can ease the blow during a difficult time such as this. It compensates you for those lost sales, giving you the financial stability you need until you can open your doors once again.
Although business insurance might seem like a hefty expense, particularly if you are just starting your company, it is a necessary and important ally to you as an entrepreneur. Fortunately, coverage is not as costly as you may fear. Often, you can consolidate several types of coverage into a Business Owner’s Policy (BOP) and receive even lower business insurance policy rates. Then, talk to your agent to see if there are additional insurance types that would fit your unique business needs. Once you have all of this in place, you can feel as safe as a driver who has just gotten a clean bill of health from his mechanic.