We all know the benefits of auto insurance for our cars or health insurance for ourselves, but as a business owner, do you know the value of insurance for your business? Here are the top three reasons every small business should be insured:
1. It May be Required
Depending on your industry, certain types of insurance are not only beneficial, but they’re legally required. Lawyers need professional liability insurance. Doctors cover themselves with malpractice insurance. These are necessary forms of Error and Omissions (E&O) insurance, which safeguards businesses against claims of inadequate work or mistakes. Most E&O policies, also known as Professional Liability insurance, cover judgments, settlements, and defense costs associated with any civil suits initiated by a dissatisfied client. Even if your business isn’t legally required to have insurance, clients, landlords, or lenders may require you to have specific insurance coverage before working with you.
2. Protecting Your Business
Running a business comes with its share of risks, from natural disasters to unexpected accidents. That’s where protection in the form of business property insurance and general liability insurance come in. Having these types of insurance in place can mean the difference between a minor setback and a financial crisis. General liability insurance covers legal fees and potential payouts, preventing a lawsuit from wiping you out. Protect your assets and cover yourself in the case of accidents, damages, or lawsuits. By insuring your business, you’re protecting your livelihood. Insurance acts as a financial buffer, helping you stay afloat when the unexpected happens.
3. Covering Your Future Goals
For a small business owner, insurance is an investment in the long-term health and success of their company. It can mean the difference between weathering a crisis and being forced to close your doors. Without the right coverage, financial losses from unexpected events can be crippling and prevent you from growing your business the way you envision.
While insurance can seem like just another business expense, it’s one of the most important investments you can make. Protect yourself, your business, and your employees with the right coverage. With the right insurance policies, you can focus on growing your business, knowing that you’re prepared for whatever comes your way.