All business owners can testify that business insurance is very important when it comes to protecting your assets. Not only is it helpful to have, but it can be a serious problem to go into business without it. Here are the reasons that it can be so costly to remain uninsured and why you should consider business insurance.
Every Business Has Liabilities
As a business providing a good or service for paying customers, you have a responsibility to provide the circumstances for a safe transaction. The context might be different–taking place with commercial property, within the boundaries of a customer’s property, or even just online–but your responsibility remains the same. Hardware Retailing reminds us that if something extreme enough were to happen, that would leave you liable. For example, somebody could accidentally harm themselves on something hazardous within commercial property. Somebody could get their private information leaked by your faulty website after the purchase is made. Insurance protects you from being bankrupted by litigation following such accidents.
It’s a Requirement
No matter how confident you are in your ability to avoid accidents, there are some liabilities that you have little to no control over. Even if you were to go decades without insurance and maintain an impossibly good record of high safety standards, you could still be fined by the government if they realize that you do not have insurance. Why? According to Franchise Gator, businesses with employees are required by federal law to have insurance. If you are found to be doing business without it, you can be fined or shut down. Make sure to do the proper research to know exactly what kinds of insurance are legally required for your company.
It Saves You Money
Having insurance is financially the better idea in the long run. Sometimes it hurts to pay regularly on a short-term basis, but having insurance will protect you and your business in the long-run. Very rarely does someone live their entire life without suffering an emergency or financial complication. The truth is, there will almost definitely be situations where the financial safety net provided by insurance will make the difference between bankruptcy and survival. Insurance companies are here to help you when you really need it. Just be sure to find an insurance plan that is right for the size and needs of your business.
When starting a business, you need to make sure that you budget correctly and prioritize the most essential expenses, especially in the bootstrapping phase. Insurance is one of these basic fundamentals that you need in order to protect your business from potential bankruptcy or other financial complications. Seek multiple quotes on insurance to ensure that you are choosing the plan fit for your needs.
Check out this article on factors that can increase your company’s liability exposure!
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
