Unexpected events such as lawsuits, natural disasters, death of a shareholder, injured employees, etc can happen at any time. If or when any unforeseen catastrophic incident happens, it can either put you and your business in serious financial risk or unreservedly terminate its existence. Now to avoid such complications and calamities, good business insurance is needed. Keep reading to find out other imperative reasons you need to insure your business like ….yesterday!
#1. Lawsuits can happen at any time
Your clients could be the best and most co-operative and it might seem impossible that they’ll file a lawsuit against you. Erase that mindset and understand that your clients can sometimes have no other option than to file a lawsuit against you. This usually happens if the contract with the client is based on a fraction of a larger contract or for example, their failure to meet contractual obligations with a third party is as a result of a negligent act or omission on you or your company’s part. Without good business insurance, your business might face financial risks by having to pay immense legal bills.
#2. You have significant investments in equipment, assets and records
If you have invested in any sort of property or equipment, you do stand a healthy chance of losing those investments through theft, damage or natural hazards. Acquiring good business insurance will protect your business from bankruptcy by replacing or repairing your property in case any such event happens.
#3. Accidents occur
Most people make the mistake of thinking that their auto insurance policy will cover them if they’re using their car on company business and you’re probably one of them. This is sometimes the case, but if it isn’t and you get into an accident where you’re at fault, you will be legally obligated to pay for all the damages and medical costs if you were not acting during the course of you official duties. But this also includes other accidents that could arise as a result of professional or occupier’s liability, that is liability resulting from the duty of care as someone who controls the working premises which must be safe for the purpose of engaging in the business you are in.
#4. Your responsibility towards your employees
As a business owner and an employer, you are legally obligated to acquire workers’ compensation insurance to protect the interests of your employees. Other forms of business insurance such as liability insurance can prevent financial worries.
#5. Helps secure a loan
When you finally decide to expand your business, you may need to apply for a loan. Without a good insurance coverage, your lender may charge your company a superfluous interest rate. Business insurance is an excellent way to show that you value your company and that you’re serious about your business endeavors.
Now there you have it. Five imperative reasons you need to insure your business right now. Although protecting what you have invested so much time, effort and money into should be reason enough.