If you own your own company, even if it’s just a one-person shop, you need business insurance. Anything can happen at any time, and if you aren’t adequately prepared to handle the situation, you could lose everything, including your personal assets. Commercial business insurance is designed to protect you, your employees, your customers and your company, and you should never be caught operating without proper coverage. Here are some reasons why.
It’s Your Legal Obligation
Depending on your business type, size and where you operate, commercial insurance may be a legal requirement, regardless of whether you feel you need it. If you have a certain number of employees, you may be legally obligated to carry disability, unemployment and worker’s compensation. If you fail to carry the insurance by which you are legally bound, you may face criminal/civil penalties, fines or the possible closure of your business.
People Will Sue You
No matter how honest you are and how good a business you run, you will eventually end up with an employee or a customer that will sue you for one reason or another. It could be something as complex as a harassment complaint or as simple as a slip and fall – well, no complaint is simple no matter what. If you do become the subject of a complaint that results in litigation, you need to have proper insurance coverage to protect you and your business.
Pays for Unanticipated Closures
Just as you cannot predict an accident or incident that results in a complaint, you also cannot predict an act of Mother Nature or other unforeseen disaster. Commercial business insurance protects you and your company if you are the victim of a theft, including employee theft, should your facilities catch on fire, or in the event of a natural disaster that causes severe damage to your operations. You will have to close after some of these events, and your insurance will cover the repairs costs and, if you have the proper coverage, it will also help cover costs while you are out of operation.
This is just the tip of the iceberg. There are many other reasons why you need commercial business insurance, which is why it’s crucial you speak with an insurance expert today to discuss your company coverage. Depending on what you do, you may need more than general and liability coverage, so make certain you have all the insurance you need so you don’t end up in a lurch. Some companies will combine your coverage into one bundle to help save you money.