There are inherent risks associated with running a business:
- Employee injury on the job.
- Natural disasters could destroy property.
- A client could sue alleging a breach of contract.
Therefore, it is crucial to protect your assets, both business and personal. Making sure you and your business are adequately insured is one way to do that. Below are the benefits of acquiring business insurance.
Keeps Your Business Up And Running
When a disaster occurs, such as an earthquake or flood, how does your business fare? Property and casualty insurance covers loss of property – buildings, equipment, etc. – but what about your lost money while your business is closed? That’s where Business Owners Insurance (also known as BOP) comes in handy. A business can benefit from this kind of insurance by protecting itself from a severe loss of income in the event of a disaster. You get paid the income your business would have made while out of commission (assuming it’s a covered loss). During that time, BOP compensates you for commonly incurred expenses (rent and utilities). Additionally, some companies cover employees’ wages, for up to 12 months, in addition to lost income.
Provides Employee Protection
The most valuable asset of your business is not the products or services you provide, the equipment you take care to maintain, or even the brand you worked hard to establish for years. Your company’s most precious asset is its employees, so it makes sense to protect them in an accident. By the law, it is a requirement to carry workers’ compensation, but you should also consider providing disability coverage, whatever the cost. In addition to protecting your employees, you are also protecting yourself – from lawsuits or liability claims.
A Lawsuit Filed Against You
A litigious society is what we have today. Your business could collapse without insurance in the event of a lawsuit or liability claims. A single accident, breach of contract, or one disgruntled employee, and it’s all over. Even if you win the suit, the cost of legal defense could lead to the end of your business. It is better to have liability insurance than to worry about what might happen, allowing you to focus on what is most important – running a successful business.
It Makes You Look Credible
You probably might not have thought about it, but having insurance makes your business look credible. The purchase of business insurance shows your prospects and customers that you are a reliable corporate entity. Your work for them is guaranteed, so you have the option to get compensated if anything goes wrong.
Ensures The Protection Of Human Assets
Owning a business enterprise entails a lot of responsibilities. The question is, what happens if you stop running for whatever reason, whether it is a heart attack, serious injury, or other unfortunate circumstance that keeps you away from the game for weeks, months, or even years?
A company-owned life insurance policy covers you if you become disabled and unable to earn income. The buy-sell agreement provides funds for the purchase of your interest if you are killed or disabled.
You can also purchase these policies – called “key person” or “key man” policies – to cover a valued employee’s disability or death.
Ensures Employee Retention And Attraction
The purpose of insurance is not simply to protect your business in “doom and gloom” scenarios. Qualified employees can be attracted and retained with the help of this program. Besides salaries, job seekers are also interested in benefits packages covering life, health, disability, and long-term care. You may lose valuable employees to companies that do offer these benefits.
