When starting a business, there are always a lot of items on your to-do list, and even though you might not consider getting small business insurance at that point, it is never too early to have it. As soon as you begin the paperwork that allows your business to become official, having business insurance is smart economically and for PR reasons. Let’s look at some of the reasons why this is so.
- Your Employees Are Protected
Why protect your employees? Because they’re human and they can’t always be at work. Insurance designed for small businesses will cover your loss in case of illness or accidents, which is a massive perk to all companies, even if you only have two or three employees. Your employees are the organization’s backbone, but the right insurance can help you continue running your business if something goes wrong. It leaves you with one less thing to worry about month after month.
- You Can Keep Going After a Disaster
Floods, earthquakes, and tornadoes can hit nearly anywhere, and if they strike near you, your business may have to shut down for a while. Because of this, you need a small business insurance policy from a well-known provider like TruShield Insurance that covers both physical items and loss of income. This is usually not a required type of insurance but is highly recommended, especially if you live in an area with a lot of natural disasters. While nearly half of all businesses cannot open up again after a disaster, that still leaves roughly 60% of them that can, making this type of insurance wise.
- It May Be Required by Law
The bottom line is that many types of business insurance are required by law, even when the number of employees is low. This law usually includes some type of liability or workers’ compensation coverage, but it isn’t limited to just that. If you’re unsure what type of basic coverage you need for your small business, you can check with an insurance company and know for sure. Ignorance of the law won’t be an excuse if you get caught without insurance, so it’s better to find out what you need sooner rather than later.
- You Can Get “Key Person” Coverage
While all employees are essential to your business’s success, many businesses have key personnel who have specialized skills which allow them to make profits for your businesses; in other words, people upon whom the entire business seems to depend. With “key person” insurance, you can get compensated if that person is suddenly out of the picture, either temporarily or permanently. This type of insurance pays for recruitment costs, loss of profit, extra personnel, etc., and it covers key employees in case of a critical illness or even death.
- It Lends Your Business Some Credibility
Let’s face it, when you start a business, you want people to view that business as a professional entity that knows what it’s doing, and what better way to do that than to show them that you have the proper insurance coverage? A business that doesn’t intend to be around for very long won’t worry about insurance, even though it should. Having the right type and coverage tells customers that you want to be here for many years to come, giving them confidence that buying your product or service is a smart thing to do.
- Litigation Costs Aren’t as Much Trouble
Many businesses get sued at some point, but with the right type of small business insurance, there’s no need to worry if this happens to you. Litigation costs can quickly get out of hand, and if you have to pay for this out of your own pockets, these costs can bankrupt your business, which no one wants to see happen. You can hire a lawyer immediately after someone sues you when you have the right insurance, and it won’t cost you nearly as much to defend yourself. Lawsuits can happen due to a product not working properly or even a broken contract, but you’re covered if you have good insurance.
- Sometimes, Clients Will Insist on It
Before you do business with them, some clients might insist that you have indemnity or liability insurance of some kind, and you don’t need to be offended should this happen to you. In fact, insisting on business insurance is prudent and wise. It shows that you are working with a good business person who is savvy about what it takes to run a business successfully. It also covers third-party actions that may cause damage to equipment, property, or even individuals. When working with clients, you never know what could happen, so business insurance is always a smart thing to purchase.