There are many reasons that you need to have small business insurance coverage. We will be going over some of them in a minute, but first something must be brought to your attention. These policies are designed for specific purposes, and as such you should always opt for a package deal designed for your industry. As an example, if you are a service company you will not need any insurance that protects your products, but you will want insurance that covers the specific ins and outs of your business.
Now that we have gone over that it is time to list some reasons why you need business insurance.
- Legal Requirements: Every area within your country will have specific rules and regulations that you will need to follow. These insurance policies will be required by law and are not something that you can skip. Examples of this would be workers compensation insurance which you have to have if you have even one employee on the books. Your location will more than likely require some type of public liability coverage as well. This would apply to all types of businesses, even the ones that are run from a personal location, such as the house or apartment that you live in.
- Employee Protection: This was mentioned above but it is a critical point that needs to be addressed. One of the most important aspects of having a good workforce is to protect them from harm with as many safety protocols as is feasible for your location. Accidents do happen, and so do injuries that happen over time by doing the same motions over and over. The people that work for you need to know that if anything does happen that they will be taken care of to the utmost ability of the plan.
- Insurance Builds Credibility: Your business reputation will make or break you. You must show credibility to your customers, to your vendors, to the city officials, and everyone else that is connected to you and your business in one way or another. Even when you start asking yourself “what is a business loan” you will need to show business credit history and worthiness. Without credibility your company will flounder and fail.
- Customer and Vendor Protection: Your customers make up all your income, and your profits. Let that sink in for a minute. You need to have some policies in place that will cover them when they are in your location, or in your parking area. You are responsible if anything happens to them, even if it is their fault. Even if you work from home and do not have any customers or vendors coming to you, it is a policy that you need in place in case anyone falls or hurts themselves. This may be covered by your personal home accident protection, but if not, get a policy as soon as possible.
- Building and Contents Insurance: You may never think that your location will sustain any type of damages, but Mother Nature is never predictable. A natural disaster, such as a flood, could happen in a matter of minutes, leaving your building flooded and everything inside damaged. Your coverage will list what is covered and what is not, so make sure that if your area has common weather issues that you are covered against them.
That should be enough reasons to get you to understand how important small business insurance is. If not, take your chances and see what happens. There is an old saying that has been around since the beginning of time that applies here. “It is better to have it and not need it, then to not have it and need it.”