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Top 10 Reasons You Need Business Insurance. Number 3 Will Schock You.

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Top 10 Reasons You Need Business Insurance. Number 3 Will Schock You.

Running a business can come with a lot of risks. A worker can be hurt while at the workplace, unexpected events like a natural disaster can cause a lot of damages to your business or a worker can file a suit alleging a bridge in contacts or something related. In this post today we will take a look at the top 10 reasons why you need business insurance.

The above are just a few out of many reasons why your business needs business insurance.

Why is insurance so important for your business? We will attempt to answer this question in the post below

There are disadvantages of insurance to business but we will take a look at the reasons you need business insurance.

So without talking too much let us get down to today’s business.

Top 10 Reasons You Need Business Insurance.

The Law Demands

According to a post by the SBA, the law mandates every business with employees to provide some particular type of insurance like unemployment and disability, workers compensation and more.

Failing to provide such types of insurance will result in fines and some other punishment from the relevant law enforcement agency which cost more than the price to pay and get the insurance.

You could be sued

What if you get sued? What can you do?

Litigation can come from here and there. In a situation where you get sued or when there is a liability claim, your business can be brought to its knees, therefore, leading it to become just a shadow of itself.

An accident. A bridge in contract or a lawsuit by an employee can spell the end for your business.

Instead of thinking of what will happen if the cases above occur liability insurance can come to the rescue giving you the space o focus on the most important thing – Building a successful business.

You can check our latest article on the 7 types of insurance you need to know

Keeps your Business very much alive

Have you ever asked yourself what will happen to your business when unexpected events of a natural disaster like earthquake or flood occur? The P&C insurance will save you and your business.

The P&C insurance covers the loss of property like buildings and other business equipment.

How about the money you lose during your closed hours? This is where the Business owners’ Insurance, otherwise knowns as BOP, comes in handy to save the day.

This insurance helps a business cover and survive even the worst of disasters.

The BOP works in a way that the insurer pays you the money you would have made in business if any natural disasters happens.

Some companies even go to the extent of taking care of employees’ salaries for 12 months.

It Makes Your Business Look Authentic

This is a reason that might not have come to your mind: Having insurance will make your business Authentic to people.

Business insurance tells your prospects and customers that they bank on you because they know that if anything goes down south you can compensate them.

That is one of the reasons home service companies use the line “licensed, bonded and insured” on their trucks. It makes a customer trust you. Trust is the greatest currency in business.

Serves as protection for your Workers

Your greatest assets in business are not the products you sell or the services you offer, the office equipment you try to take care of with everything you get or the brand you have invested so much in to build. Your greatest assets are your employees and Business insurance protects them when there is an accident at work.

The requires that your business takes care of your employees at work, you can as well think of offering disability coverages, even if that means you will charge them for some part of the cost.

Protecting your workers’ interests will also help protects yours.

It Covers Acts of God

In Insurance, ” Act of God” means something that is not caused by humans. Floods, tornados, fire as a result of lightning all are Acts of God.

The two types of casualty and loss insurance cover this type of accident: all-risk and peril-specific.

All-risk policies cover events except for those expressly mentioned. Peril-specific policies cover particular risks and cover fire, floods and other specified acts of God.

Keeps Guard of Human Assets

As an owner of a business, you are saddled with the responsibility of keeping the business running. But what happens when you stop running the business as a result of health issues or some unfortunate incidents takes away from the business for some time?

Company-owned life and disability insurance coverage provide payments to take care of the loss of income you generate. In the situation of your death or disability, it provides money for the purchase of your interest under a buy-sell agreement.

You can as well buy a policy known are the “key man” or the “key person” insurance to help cover the disability of the demise of an important employee.

Attracts and Keep Employees

Having insurance is not just about protecting your business when bad days come, it has a positive influence of attracting and retaining your workers.

After a handsome salary, employees look for a good package that takes care of life, health and disability. If you don’t offer these then you might a good number of workers to the companies that do it.

Maybe Required during Contracts

Several factors may be considered when it comes to contracts and insurance:

  • When you lease or rent your property you may need to carry insurance as the landlords’ policies may not cover it.
  • If you borrow some money to take care of buildings, equipment or operations, the agreement may contain an insurance requirement.
  • Clients’ contracts may require that you carry insurance in case things go down south.

The future is unpredictable

No business owner has some magical powers to accurately predicts the future whether it will be smooth or some disaster will occur.

For the uncertainty of the future, a business needs to be insured.

By being insured against future occurrences business owner cans focus on doing what matters and building the business.

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