Top 5 Reasons You Need Business Insurance

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Businesses face many risks. According to Insureon, 40% of small business owners and 75% of businesses in the US are uninsured. Small businesses often lack adequate insurance coverage in the event of a lawsuit or disaster. If you have a business, it’s important to make sure it’s salvageable if something bad happens. For advice on the best coverage, look for a credible business insurance agent. Here are five crucial reasons why insurance is vital for your business.

It’s a Legal Requirement

Depending on the state, businesses with employees must provide workers’ compensation, unemployment, and disability insurance. Even if yours does not, don’t consider it a waste of money. Your company can lose more money if a client sues you after being injured at your workplace.

Make Your Business Credible

Business insurance reassures potential clients and customers that you have a plan B if something goes wrong with your business. That’s why most businesses have signs that state “licensed, insured, and bonded.” It fosters trust and shows the client that you are a legitimate company. Also, insurance coverage helps your business in the event of a lawsuit or liability claim. However, consult your business insurance agent to determine the best coverage for your business.

Contracts May Require Insurance

Businesses require insurance when making contracts. For instance, you’ll need insurance if you rent or lease your business premises or borrow money for business buildings, equipment, and operations. Some clients may demand insurance coverage before signing a contract for coverage in the event of a mishap.

Protecting Your Employees

Most states require workers’ compensation insurance to protect them if they get sick or injured. Also, an insured business attracts employees because workers look for a place with benefits. Consult your business insurance agent to advise you on the coverage that will compensate for your workers’ medication, missed wages, or funeral costs. In addition, insurance covers your clients if they are hurt on your premises, as well as property damage or product liability.

Coverage for Natural Occurrences

Your business requires casualty and property insurance to cover acts of God like fires, tornados, hurricanes, lightning, or flooding. Check the specified natural disasters in your policy and see if the risks in your area are covered. You cannot predict future occurrences. As a business owner, you may hope natural disasters, lawsuits, employee injuries, or client property damage never occurs, but no one can guarantee that. Disasters and problems are bound to happen. With business insurance, an owner can enjoy peace of mind and focus on growing the business.

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