Running a successful business is no easy feat. Owning your enterprise comes with a string of obligations, responsibilities, financial and operational risks. Proper business insurance coverage can help protect your small enterprise when certain challenges arise in your entrepreneurial journey. Natural disasters, lawsuits, theft, on-site injuries, property damage, and other circumstances can risk your business going bust.
Sadly, over 75% of U.S. businesses are underinsured. And 40% of small business owners do not have any insurance coverage. Insurance is a vital part of your business operations that can help cushion you from the operational upheavals. The cost of paying the premiums is only a fraction of what you may incur when an unexpected incident occurs.
Here are seven reasons why you should consider picking up business insurance.
1. Protect Your Business Assets
Most businesses require some sort of infrastructure to keep them running. Taking out coverage from your insurance agency can help protect the substantial investment made in inventory, equipment, or property. You can replace your assets in no time to resume normal operations.
2. Safeguard Your Employees
Most states require that business owners have a worker’s compensation plan for all their employees. The insurance process helps you to compensate any member of your team that sustains injuries while at work. The compensation may cover their lost wages, medical bills, physical or emotional pain.
3. Build Your Brand Credibility
Modern clients and customers are increasingly picky about the brands that they purchase from or source their services. Business insurance can help quell their worries by indicating that you take managing risks seriously. Savvy clients can now conduct quick background checks that can reveal if you have insured your business or not. You can net more business for your enterprise by getting insured.
4. Keep Your Business Afloat
Natural disasters, cyberattacks, and civil lawsuits can all run your business to the ground. Forced closure of your business for an indefinite period can spell trouble for your enterprise. Indemnity can act as a backup plan and bail you out to start afresh.
5. Comply with the Law
Some industries are heavily regulated, requiring business owners to have insurance before operating. Failure to carry certain mandatory insurance policies such as worker’s compensation can result in punitive fines, civil or criminal penalties, cease and desist orders, or exclusion from public contracts. These consequences will cost you more than the price of paying premiums to your insurance company.
6. Help Venture into New Risks
Risk-taking is a crucial factor for business success. However, no matter your diligence in calculating your risk, there is still a chance that it would blow up on your face. Business insurance enables you to venture out without worry. The insurance payout can help you get back to your feet and start over.
7. Protect You and Your Business from Lawsuits
Lawsuits are quite costly. Disgruntled employees, unsatisfied clients, or your industry competitors can initiate legal proceedings against you and your business. Insurance can help protect you from lawsuits and their outcomes. Fines and settlements paid up through insurance can help keep your business afloat.
Insurance is a key part of any business. To discuss the different business insurance coverage that you need, reach out to AOA West, Inc. We also offer renters insurance, insurance for antique cars, and home insurance.