If you want your business to be successful, it’s important that you have adequate insurance. Even if you’re a small business that’s just starting out, you still need it. And while you may think only larger businesses purchase it as a luxury, this couldn’t be further from the truth.
Here are four good reasons why it’s important for business owners to have insurance:
Life is Full of Surprises
You never know when a tornado or flood might occur that causes catastrophic damage to your business. In fact, any natural disaster could strike or your business could even catch on fire. Without insurance, you’re stuck wondering how you will pay for the damage, whereas with insurance everything will be covered.You may think your business budget is tight now, but imagine what would happen if you had to come up with $5,000 to $10,000 to get your business back up to code?
Someone May Get Hurt on Your Establishment
Accidents can happen at any time. Imagine if one of your customers slip and fall and seriously injury themselves while at your establishment; you’re responsible for paying for their medical care. With insurance, your policy will cover any funds that need to be given to the victim. Without liability insurance, you could find yourself throwing your own money to them for medical bills, pain and suffering, legal fees, and more — a financial nightmare that your business may not be able to recover from.
Company Vehicles Need to Be Insured
Cars are expensive. Imagine one of your employees getting into an accident or someone stealing one of the company cars — and another expensive nightmare for you to deal with. If you have insurance, however, you’ll avoid the stress because all you have to do is call your insurance agent and they’ll take care of everything required to get your company a replacement car on the road as soon as possible.
Maintaining Business without the Key Person
Most of the time, it’sthe knowledge of one or two key people who keep a business successful. Key person insurance helps a company stay on top if a critical employee dies or is unable to work for a lengthy period. This type of insurance provides the funds needed to keep your business afloat until the critical employee returns or you find a suitable replacement.
Closing Thoughts
Unexpected events occur all of the time — which is why it’s important to have insurance. After all, it makes little sense for business owners to risk all of the time and money that they’ve invested just to save a few dollars. The bottom line is that insurance is an investment every business needs to make regardless of its size. Don’t make the mistake of waiting until it’s too late to consider your insurance options.
Photo Credit: David Hilowitz
My sister’s business had no insurance then, which made it hard for the business to bounce back because it had nothing to depend on and it was too late, so it closed down. Now, my sister had a new business again and she made sure it has insurance and has learned lesson from the previous experience.