A business of any size is vulnerable to unpredictable emergencies. Running a business inherently a risky undertaking! Unexpected costs can come from a range of events that can’t be foreseen, including natural disasters, lawsuits, property damage or employee injuries. For these problems along with a range of other unforeseeable expenses, businesses should ensure they are adequately protected by investing in business insurance. Below are a few benefits of business insurance and why it is so important, even if—or especially if—you are part of a small business venture.
Small Business Insurance Helps Reassure Your Clients
Investing in a business owner’s policy is a smart business move and can help build a good reputation. Your clients will want to know you have insurance since they are investing in your services and/or products! Having insurance shows your clients that you are a responsible, reliable organization worthy of their trust (and money). It can also help attract new clients who might be more hesitant to invest in other small businesses that are not well-protected. Securing your clients’ trust is really important for small businesses that often rely on maintaining long-term relationships with a few, key clients. Insurance is, of course, important for a business of any size, but losing a single client due to lack of trust is often a much bigger deal for smaller companies. Taking the steps to get insured can help bolster these key relationships right away.
Helps recover the business after a weather emergency
If you run a small business, you need to make sure you take the necessary precautions to protect yourself from the possibility of damage due to a natural disaster. This includes any damage to physical store front spaces, damage to warehouses that store products, and damage to technology or files with irreplaceable information. The UN Office for Disaster Risk Reduction recently released data in 2018 that demonstrated the global rise of natural disasters, including flooding, earthquakes and tornadoes. Investing in small business insurance helps to ensure that the damages incurred during a natural disaster won’t be detrimental to the success of the business.
If the damages are so extensive that you are forced to close your doors or halt business operation for a period of time, some small business insurance plans even cover income for yourself and your employees for the interim period while you work towards restoring the business. Insurance can also cover ongoing expenses that you are required to pay even if you are not receiving income from the business, including rent, heating or water costs.
Helps cover the costs from other unpredictable events
The truth is, anything can happen. Employees could get injured while performing business-related tasks, or a colleague could have a sudden health condition that requires taking a long-term leave of absence. Business insurance can help cover these costs, which could otherwise be detrimental to the business’s bottom line.
You might be wondering about the personalization of business insurance. What if your business only needs certain kinds of protection (for example, if you have your own company and don’t have any employees)? Let’s say you have a storefront and still need to ensure that your property is protected in the event of a natural disaster, but you don’t need workers’ compensation insurance? Business insurance is easily customizable.
Check out all the business insurance options available to find a plan that suits your business’s unique needs.