A business endeavor has its share of inherent risks: employees may get injured while working, natural disasters could cause property damage, or clients can file lawsuits due to contractual breaches or errors. Unfortunately, it’s only possible to mitigate these risks partially, regardless of how much planning and preparation is involved. So, how do you protect personal and business assets in case of a problem? The answer is through insurance. That said, the following are reasons why every brand or company should have coverage.
1. The law may require it.
Depending on where your business operates, the law may require companies to have specific types of coverage, such as workers’ compensation, disability, and unemployment. For example, general liability insurance in Orlando, FL, is a coverage policy that most enterprises need to carry legally. Failure to do so can potentially result in criminal or civil penalties, expensive fines, orders to cease and desist operations, and exclusion from contracts, costing an organization more than what coverages are needed.
2. You may get sued
The modern world today is a litigious one. In case of a liability claim or lawsuit from an accident, breach of contract, or even a disgruntled worker, a business may experience financial catastrophe without insurance. The expense of hiring legal defense alone can be enough to sink a small business. Instead of being anxious about these problems, investing in liability will ease your worries and enable you to focus on running your business successfully.
3. Keeps business running
Natural calamities like floods or earthquakes can cause a considerable amount of damage to a business. While P&C insurance can cover property losses, such as equipment and buildings, what about all the money that a company will lose during its closed period? Through BOP or business owner’s insurance, it’s possible for a business to remain afloat as the policy protects it against income losses by covering the revenue it would have otherwise generated and compensating for operational expenses incurred.
4. Boosts credibility
Another reason insurance is a good idea is that it boosts the credibility of a business. Coverage shows existing and prospective clients and partners that the company is a good bet because it can compensate if something goes wrong. It’s also why many home service providers often carry statements like “insured, bonded, and licensed” on their assets, as it helps build trust, which is the modern-day economy’s currency.
5. Protects employees
Every company’s foundation is its employees. It’s through their efforts that businesses thrive and flourish. Since they’re the most valuable assets of any organization, it makes sense to keep them protected. And policies like workers’ compensation can do just that.
It’s impossible to predict the future. In a perfect world, injuries, accidents, lawsuits, and natural disasters wouldn’t exist. However, this world is far from perfect, and there’s a limit to what you can do to avoid these problems. So make sure that you get the right insurance policies. They will keep your business protected in ways you cannot.