Insurance is one of those essentials that everyone has in several areas of their lives. For instance, you need health insurance for your health, car insurance for your car, and renter or homeowners’ insurance for your rental or home property insurance. However, why do people forget to include their business’ needs? Business insurance is something that many people overlook since running a business is already costly, and one of the last things you want to do is to add on expenses.
Most business owners who don’t have business insurance are hoping that they won’t need it and wish that nothing would ever go wrong. In this article, we’re going to discuss with you some of the reasons why it’s helpful to have business insurance. We’ll also be including the risks that come with having no business insurance. Keep reading if you want to learn more!
Risk #1: You might break laws
Every country has their own set of laws requiring businesses to have specific types of insurance or a particular amount of coverage. For instance, they may state that you have at least general liability insurance for your business if you have at least one employee. In other circumstances, some may require you to have additional protection for things like workers compensation, or property insurance for the protection of your workers in case you’re located in an area risky to natural disasters, and even coverage against lawsuits.
Risk #2: Cyber-attacks
Most business owners who own brick-and-mortar stores understand well the importance of business insurance since plenty of those risks are tangible. Meanwhile, business owners feel that they don’t even need this insurance. This may seem reasonable since many business owners who run their business at home have the misconception thinking that since they’re running their business at home, there won’t be any damages that can happen while working at home.
However, this is very wrong! Maybe you’re thinking that homeowner’s insurance can cover the losses or damages but this type of insurance doesn’t actually cover any damages and risks pertaining to your business, whether it’s equipment or tools. It’s not true that just because you don’t have a physical store, you are at a lower risk. In fact, online businesses are at a higher risk for losses and damages from cyber-attacks.
Risk #3: Harming your employees
Employees are the powerhouse of every business, they are the number one reason why your business is running. They provide excellent customer service or help you with your everyday operations so they can run smoother. Without these people, it will surely be difficult for you to keep your business resilient. This is why it’s very crucial that you make sure they are all protected.
Just imagine if your employee, for example, gets injured on the job and he is sent to the hospital or is advised to have a time off from work, you as the owner of the business is the one responsible for either their medical costs and their loss of income also if ever they seek damages. Having worker’s compensation insurance can cover all of these costs for your employee, otherwise, you want to get sued.
Risk #4: Lose your property and assets
Property insurance is one of those important types of business insurance that you need to consider if you want to protect your most important asset in the event of a catastrophe and other disasters. Overlooking this type of insurance can result in losing your possessions and you won’t be able to continue your operation immediately if anything happens to your building.
For instance, if the place you’re operating your business gets flooded and all of the computers, printers, desks were entirely ruined because of water damage or fire, then property insurance can cover all the loss of your business equipment and furniture. Having this business insurance means that you don’t have to use any money in your pocket in order to replace those items. Remember that the risks you are taking of not buying enough business insurance are not even worth taking. It’s time that you talk to a credit insurance broker to make sure that your business is protected against unforeseen circumstances.
Risk #5: Interrupted business operations
Since we’ve previously talked about the risks of fire or flood destroying your property and business equipment, if this ever happens, it only means that you won’t have any means to recover from the incident and you’ll be left with all the financial repercussions of repairs and business interrupted operations. While you’re not making any profit, most likely you’ll be losing a lot of money if you plan to open your business again.
Having business insurance is a surefire way to help you be protected by covering any damages as well as the income that instantly vanishes during the time that your business gets interrupted.
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