Going into business for yourself always entails risks. That’s why investing in business insurance is such an intelligent idea. It can protect you against potential hazards while helping you to earn new customers. Let’s look at ten specific benefits that business coverage provides.
Benefit Number One: Protection against Lawsuits
Almost any company can find itself on the receiving end of legal action, whether it’s a mega-corporation or a mom-and-pop storefront. Even a home-based business can be sued under certain circumstances.
Of course, the lawsuit itself may have little or no merit. But this won’t protect you from the court costs and attorney fees you’ll likely incur. Business insurance can cushion the impact of these costs on your bottom line, covering your company and your financial assets.
Benefit Number Two: Protection for Customers and Employees
What would you do if a customer slipped and fell on your company property? Or if a worker accidentally dropped a pallet full of heavy merchandise on his foot? Or if one of your products injured the individual who purchased it? Business insurance can safeguard your workers and customers in these situations while protecting you from the cost of personal liability.
Benefit Number Three: Protection against Legal Trouble
Another reason to carry business insurance is that your state or community may require it. Trying to fly under the radar will only set you up for serious consequences when a misfortune eventually occurs.
Benefit Number Four: Increased Opportunities for Your Company
Reputable people like to do business with reputable companies. That’s why they’re picky about who they partner with. Carrying business insurance is one way to show that you’re worthy of their trust, helping you land better contracts and attract more customers.
Benefit Number Five: Protection against Acts of God
An “act of God” is any natural disaster like a fire, hurricane, or tornado in the insurance world. While rare, these events can inflict devastating damage on your commercial properties and equipment. Imagine what it would cost you to cover these losses without business insurance to back you up.
Benefit Number Six: The Chance to Attract Quality Workers
Have you ever heard the old saying, “you can’t get good help these days?” Unfortunately, it seems like it’s always true, no matter what the economy is doing at the time.
Offering good wages or salaries is one way to find quality people. But money alone is only one inducement. Carrying insurance is another way to set your company apart as a great workplace. Then, imagine the productivity you’ll gain once you’ve got the right workers on your team.
Benefit Number Seven: Better Chance to Obtain Credit
Doing business on a cash-only basis is rarely feasible these days. A credit line can help you obtain new equipment, expand your operations, and deal with short-term contingencies.
But commercial creditors are careful about to who they loan money. In most cases, they require applicants to carry insurance. Without coverage, you may never get the funds you need to access new opportunities.
Benefit Number Eight: The Ability to Customize Your Coverage
One of the great things about modern business insurance policies is how customizable they are. Here are some examples of what we mean:
- Data breach and customer identification protection are available to businesses that handle sensitive information.
- Accident protection is available to companies with a physical storefront or other tangible location.
- Health and workers’ compensation insurance is available to businesses with multiple employees.
- General liability insurance provides comprehensive coverage to various product and service providers.
Benefit Number Nine: Coverage That Grows with Your Business
Not only can you customize your business coverage, but you can also expand your protection as your company grows. For example, you may only need a general liability policy when starting. But later on, you may need protection for managers and directors, cybersecurity threats, or business properties like offices and warehouses.
Your insurer can help you add additional products to your portfolio, laying the groundwork for your ongoing success.
Benefit Number 10: Doing Business Worry-Free
What’s the point of being self-employed if you’re constantly worried about things outside your control? Yet that’s the price you pay by foregoing business insurance. You’ll spend so much time focused on what might happen that you’ll likely miss opportunities right before you. Taking out coverage makes a lot more sense, not only for your company but also for your peace of mind.
Summing It All up
Starting your own business is never risk-free. But carrying the right business insurance can protect you from unforeseen hazards. By choosing your coverage wisely, you can focus on expanding your company instead of being bogged down in concern. That’s the kind of benefit that money alone can never buy.