A survey by Marshall and Swift/Boeckh found out that 75% of businesses in the US are underinsured. Besides, more than 40% of small business owners have no insurance coverage at all. It may put your enterprise in a precarious position when lawsuits, natural disasters, theft, or property damage hit your doors.
Small business insurance coverage can help protect operations when such upheavals occur. The premiums that you pay to the insurance company may not only be a fraction of what it may take you trying to keep afloat without coverage after misfortune strikes. If you are still unsure, here are seven reasons why you should consider having business insurance.
1. Protect Your Business Assets
Your small enterprise may have critical infrastructure that keeps the operations running. Taking out insurance coverage from your local providers can help protect your investment. Damage to any of your assets can see prompt replacement with the insurance agency covering the replacement cost. You can go back to normal operations within no time.
2. Pay for Your Legal Defense Fees
Unsatisfied clients, industry competitors, or government regulators may initiate legal action against your business. Statistics indicate that the average US business faces at least 300 lawsuits in a year, with court costs adding up to over 15 million. Insurance coverage can help handle the legal costs that arise from litigation and the eventual outcomes including fines.
3. Boost Your Brand Reputation
Consumers and clients are increasingly wary about the business that they buy or hire services from. Insurance coverage may vouch for your professionalism and credibility. It may put your clients’ minds to rest knowing that you take managing risks seriously. You may need more business for your enterprise by taking out a small business insurance plan.
4. Comply With the Law
Federal and state regulators may require certain businesses to have insurance coverage before applying for permits. For example, general liability and worker’s compensation are mandatory for most businesses. You may need to check the laws governing your specific industry within the state. Insurance companies in Maine can help you remain compliant to set guidelines.
5. Safeguard Your Employees
Accidents are not uncommon in any industry. Most states mandate that business owners have a worker’s compensation policy for their staff. The insurance policy can help cover medical expenses, lost wages, and pain suffered for injuries sustained while at work.
6. Help You Take On New Risks
Risk-taking is part of normal business operations. Taking out insurance coverage can help you venture into the new risks with peace of mind that you can bounce back if it ends up blowing up in your face. The payout can help you bounce back to your feet and start over again.
7. Keep Your Business Afloat
Natural disasters, unforeseen lawsuits, or property damage can place a huge strain on your business operations. Forced closures can ground your business for months on end, spelling trouble for your operations. Insurance coverage can act as a backup plan as you mitigate the upheavals.
Business insurance is vital to protect you, your enterprise assets, and your staff. To discuss your small business insurance needs, reach out today.