Quite a few business owners operate without business insurance because they may believe it is not a requirement for their industry. If they are not dealing with anyone’s personal property or facing any workplace dangers, they may not want to take on the extra monthly expense. These business owners may not realize how much they are putting themselves at risk when they make this decision. Property damage and workplace hazards are not the only issues that can set a business back financially.
The threat of a lawsuit can be a major problem for any person running a business. All it takes is one loss from a legal suit to permanently shut a business down. Even if the business does not lose, they can still mount up a huge bill due to legal fees, court costs, and miscellaneous expenses.
Any person can file a lawsuit for any reason at all. An employee can file a discrimination or harassment lawsuit for a few hundred dollars. A customer can file a lawsuit against a company for selling them a batch of defective products. Neither one of these cases involve physical injury or damage to a tangible asset. This is why it is a bad idea to operate without business insurance under any circumstances.
Business Insurance Options:
Adequate insurance coverage will protect a company from virtually every risk imaginable. This includes the risks that may not be so recognizable. A conventional business insurance policy should include personal protection, liability coverage, worker’s compensation, truck and car insurance, and fraudulent activity protection. For additional coverage, it is a good idea to purchase an umbrella policy for maximum protection. This is a must-have for companies with complicated business models and companies that handle expensive items on a daily basis.
Personal Protection Insurance
This insurance provides coverage for a business and owner if a natural disaster causes the business to shut down. This protection is perfect for companies that need a retail or wholesale location in order to operate. If property damage, equipment damage, or a utility malfunction should occur because of a fire, hailstorm, or hurricane, the insurance will cover the business financially during the recovery process. This includes covering payroll expenses and restoring lost income.
Liability Coverage
This insurance provides financial coverage for physical injuries, property damage, and lawsuits. It prevents business owners from personally paying these expenses if they should occur. Accidents can happen at any time, especially in a hazardous work environment like a construction site. Businesses that need automobiles for their operations are susceptible to accidents as well. This protection provides ample coverage for anyone involved in a situation that could impair their business financially.
Worker’s Compensation
This insurance helps business owners cover their employees financially if they suffer an injury at work. Accidents can occur from falling objects, slipping or tripping, equipment-related injuries, and so on. Workers compensation will pay the medical expenses for any employee hurt on the job. In some cases, employees may receive compensation while they are in their recovery process.
Business Truck and Car Insurance
This insurance is a must have for any company needing vehicles in order to operate. This would include couriers, caterers, service professionals (electricians, plumbers, etc.), delivery drivers, and truckers. These businesses deal with road hazards regularly and they need the greatest amount of coverage available. Business auto insurance provides the same protection as a typical car insurance policy. However, the car insurance quote may be a little higher since businesses are on the road more often than the average driver. In any case, it is worth the expense as long as all car insurance quotes include uninsured motorist coverage and protection for passengers and pedestrians.
Fraudulent Activity Protection
This business insurance covers a company if they should fall victim to a fraudulent act such as forgery, counterfeiting, theft, or scamming. Banks and check cashing places are really susceptible to this kind of crime. However, any place that handles multiple transactions regularly can be a target for fraud. Taking precautions and obtaining this business insurance is the best way for a business to protect themselves against criminal activity.
Business Insurance Is Essential
With business insurance, companies can operate without making themselves vulnerable in any way. If an issue should occur, they can take care of it without sacrificing their assets or personal income. They can also protect themselves from natural disasters and other issues outside of their control. It is normal for a business owner to keep their expenses as low as possible. However, they should look for other ways to cut expenses and always keep their business insurance valid. The low monthly cost has the potential to save them a considerable amount of money if they encounter a problem that can ruin them financially.
Author Bio: Bethany is a freelance writer for an auto insurance comparison website. She loves helping others get the best deal by comparing insurance quotes. If she is not busy working she can be found helping her kids with school or taking them team practice.