Business Insurances

Running a business can be extremely rewarding. After all, if it is a business you started from the ground up, poured some real heart, soul and sweat into, then your successes are that much sweeter. There are few things in life that feel so sweet, principally because you know you earned it.

One of the truly heartbreaking things however that can occur when running a business is said business suffering a setback. A natural disaster could easily wipe someone out, or a client filing a lawsuit or even an alleged contractual breach with a partner or investor. Couple this one of the more common things that happen on the job – an employee getting hurt – businesses of all sizes are always at risk and that is why business insurance is so critical.

Away from the inherent benefits of insurance, basic law requires all businesses (no matter their size) to provide workers’ compensation, disability and unemployment insurance. Failure to do any of these will surely result in fines or criminal penalties. Second, as alluded to earlier, as a business owner you could get sued in the event of a liability claim or lawsuit. We live in an extremely litigious society and all it takes is one disgruntled employee to absolutely shatter a business. Even if you win, the legal costs could put you out of business. Liability insurance will give you peace of mind and as such is highly recommended.

When a natural disaster hits P&C insurance covers property loss. The way it works is the insurer you sign with will pay the income your business would have generated while it was out of commission due to the disaster. Business Owners Insurance will compensate the owner for operation expenses such as utilities and rent that the business would have also incurred during that time. Another great reason to consider business insurance is it will make you look credible. More specific, it shows your prospective clients that you are a serious business and a safe bet from a risk perspective.

Lastly, business insurance protects the most cherished asset of any business – its employees. In the event of an accident, you can lose a machine or even portions of physical property, but losing an employee, especially a valued employee is plain disastrous. Being able to offer disability coverage in addition to workers compensation is recommended, even if you need to charge your employees for this. In line with this point, as the owner you also need to protect the business in the event something happens to you. What would occur for example if you suffer a heart attack or some other serious accident? You would be out of commission and the business negatively affected. Company-owned life and disability insurance provides payments back to the business in the event something happens to the owner.

If you have made it this far and aren’t convinced of the need for business insurance, we’re not sure what else we can tell you. Oh, we know, re-read the post!