4 Benefits of Business Insurance
Most small business owners will often underestimate the benefits of insurance. Since their businesses are exposed to a lower risk level, they often assume that insurance is an unnecessary business expense. However, this is never the case. The extract below details the benefits of getting business insurance.
1. Meeting Industry and Government Regulations
In most countries, the government compels business owners to have workers compensation insurance to protect their employees from workplace hazards. If you do not apply for this cover, you risk getting in trouble with the authorities. Some professional associations also ask their members to take specific insurance covers. It ensures the association has an easier time marketing its members to potential clients.
2. Insurance Protects Your Business From Severe Losses
If a fire razed your business premises, it would damage your inventory, office equipment, and crucial documents. Insurance coverage will help you back to your toes without incurring many expenses. In some cases, business owners can also take a business interruption policy. The coverage compensates you for losses you incur from the onset of a disaster to when the business is fully operational. In such a way, you have adequate funds to pay your employees and settle bills even though the company is not running.
3. Insurance Protects the Business From Legal Suits
Suppose an employee suffered a workplace injury or a customer slipped and sustained a severe injury. In this case, the injured individual would sue your business for injuries and damages. Compensation suits are known to drag for years. Besides, they could also cost your company a fortune. Insurance coverage is the easiest way to avoid such losses. The insurance cover not only compensates the injured individual but also pays legal fees should the complainant go to court.
4. Insurance Can Protect Your Business Image
If a person sues your business for negligence, there is a high probability that this information could land in the public domain. For example, take a case where a dentist is accused of medical malpractice. Such information could severely damage your business reputation and negatively affect your profit margins. Insurance companies step in by handsomely compensating the injured individual. They also ensure that the settlement contract contains a non-disclosure clause that prevents the individual from making comments that could affect your brand image.
Insurance coverage can also increase the confidence that clients have in your business. For example, a contractor with general liability insurance is more likely to receive a contract compared to contractors without the cover. Remember, the coverage guarantees that your client will not suffer liabilities in case of an accident at their site.
Insurance covers will protect your small business from losses and legal suits. Besides, they will safeguard your business reputation and ensure you are compliant with the law.