Starting a business, whether large or small, is an exciting time. Business owners have many tasks, from hiring to starting social media accounts. One necessary aspect that may get overlooked is insurance. Learn about the importance of insurance for businesses and explore the different policies available.
Does My Small Business Need Insurance?
The short answer is yes. You will need insurance if you need a loan to open your business. You are not off the hook even if you have your seed money. Insurance is still necessary.
Why Do Businesses Need Insurance?
Think about insurance as a safety net to protect you from the unknown or unexpected. Also, in most states, it is the law. Even if it is not law, you still need insurance. It will protect you financially from lawsuits, accidents, and other problems.
Business insurance is not only protecting you. It protects your employees, too. Insurance provides benefits, including medical care and missed wages, to injured employees. Customers have protection, too. If a customer gets hurt in your store, your insurance can help pay their medical costs.
There is a certain credibility that comes with having insurance, too. Contractors and customers will take you more seriously. Many contractors may decide the risk is not worth it if you do not have the proper protections.
There are not too many business owners who do not sign a contract or two. Most contracts will require owners to have insurance. Some examples include rental, loan, and customer agreements.
When employees are looking for a job, their first concern is salary. Their second concern is insurance benefits. Businesses that offer life and health insurance are more likely to attract more qualified employees.
There is no predicting when a natural disaster, including floods and fire, may strike. A business in an area prone to tornadoes, hurricanes, and severe weather will find insurance valuable.
Most of all, business insurance can help to relieve the stress. Knowing that you have business insurance can make it easier to sleep at night, especially when many things can go wrong.
So, What Types Of Insurance Do I Need?
All businesses need general liability insurance. The insurance protects businesses from bodily injuries and property damage claims. Problems, including copyright infringement, reputational harm, and advertising injury are under the general liability insurance umbrella.
Commercial property insurance protects your business’s physical property. The policy covers furniture, computers, equipment, tools, inventory, and documents. Commercial property insurance usually covers any property damaged by fire, wind, and lighting. It also covers acts of vandalism and theft.
A business interruption policy will replace lost income if your business needs to close temporarily because of a fire, wind damage, a tree falling on the building, theft, and more. The policy also covers merchandise damaged by any of the above problems. If you need to move temporarily, the policy covers additional expenses.
In today’s technological world, businesses should consider cyber liability insurance. The insurance will help cover the costs relating to data breaches and cyberattacks. The policy will also cover the cost of notifying customers regarding a data breach and providing them with free credit monitoring.