Much is at stake when you start a business. Everything from ownership to customer rights can be protected through insurance. However, you should also be aware that most states also require it. Here are some of the key points you should consider for insuring your business, regardless of whether it is required or not.
Risk of Financial Loss
Financial loss can occur in many different ways. Protecting your business against unforeseen incidents should not be taken lightly. Companies don't plan on these events happening, but they should still consider protection against them. Consider the following scenarios:
- A customer sues you after getting hurt at your place of business.
- A fire destroys your building or your inventory.
- Your clients’ personal data, if maintained on-site, is compromised, stolen, or destroyed.
Protecting Your Employees
Workers’ compensation insurance is one type of insurance that almost all states require to cover work-related injuries or illnesses. However, keep in mind that workers’ comp offers different protection than unemployment insurance. Workers’ comp provides these key benefits:
- Medical care
- Missed wages
- Funeral costs
Protecting Your Customers
A Business Owner’s Policy provides liability coverage for your business. This would provide your business protection against on-site customer injuries, as well as legal liability, which would include:
- Property damage
- Personal and bodily injury
- Product liability
- Legal fees
Business and Vendor Relationships
Business relationships generally require contracts, certifications, licensing, and legal agreements to be executed. Most contracts require some level of protection, usually in the form of equities or business insurance protection. Some of the more common examples are:
- Rental lease agreements
- Business loans to finance goods and inventory
- Vendor and client agreements
- Licensing and certification fees
Business owner’s insurance protects management's business executives, including the business owner, CEO, departmental VPs, or other key members of the staff that help run the business. In the event of a lawsuit, your senior management team should be covered by the business's liability insurance which should be added to your Business Owner Policy.
Natural Disaster Coverage
Natural disaster coverage is an important element of the Business Owner Policy. There is no one location that a business owner can safely assume is at low risk of a natural disaster. Seasonal changes alone put us all and our businesses at high risk of financial ruin if not protected.
- Electrical storms
Peace of Mind
Peace of mind itself is priceless for business owners. The challenges and responsibilities of running a business today should not be hampered by additional risk and worry that could be lessened or eliminated by making good business decisions to protect your investment. Business Owner Insurance is a small price to pay to protect your business and have peace of mind knowing you're protected against unforeseen financial disaster, allowing you to focus on all the operational aspects of running a successful business.