When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.
There are different types of business insurance. General liability insurance protects your enterprise from various claims like bodily injury and property damage. Data breach insurance guards your company against information loss by paying for identity theft monitoring services. On the other hand, commercial auto insurance will protect you and the employees if you drive company vehicles.
This article will discuss the essential benefits of business insurance.
Minimize Financial Losses
Whether you run a small or big business, you will face risks that can drown your investment in financial distress. For example, expensive equipment can get damaged due to extreme weather, or it may get stolen or vandalized. Buying the right insurance will help you pay for the repair and replacement costs. Such a loss can adversely affect your business operations, making you lose money.
Also, your property can be damaged by a fire accident, leading to a massive loss. The fire insurance coverage will cover the reconstruction costs in such a case. However, ensure you talk with your insurance agent about the liability limit and if you need additional coverage. You may have to pay out-of-pocket if the damage surpasses your coverage threshold.
Boosts Credibility
Insurance coverage for your business will help build mutual trust with your customers and creditors. For example, if you own a towing company, your clients will trust you more as they know they will be compensated if their vehicle is damaged in an accident. Moreover, if you want to borrow a loan from a bank, you will be asked to show proof of insurance. You will also need to avail your insurance certificate to secure government contracts and other tenders.
Deal with Lawsuits
Your business needs professional liability insurance (errors and omissions coverage). This policy provides cover against lawsuits claiming you made a mistake in your services. For example, if you own a pharmacy, a client may claim you sold them a product that affected their health. Your coverage will pay for the legal and medical fees if the complainant's claim is valid.
Some states require a business to have workers' compensation insurance. The policy will help pay for your employees' medical expenses if they are sick and replace most of their lost wages for the period they are absent from work. Also, the coverage will cover funeral costs if your worker dies due to a work-related injury or sickness.
You can purchase customized coverage to help create a public relations campaign if a defamation case hits your company. For example, you can safeguard your business' reputation if a fired employee decides to attack your company publicly. For more information on business insurance, contact a company near you.
Share5 December 2022
