WHYDO YOU NEED BUSINESS INSURANCE?
Puja Bhardwaj || Startupcity Magazine
Running a business holds a lot of risks, from a natural disaster to physical damage. Good luck and positive thinking are not enough to protect your business from losses. Unfortunately, bad things happen to the most unsudden moments. Here, business insurance covers the costs associated with property damage and liability claims. If you don't have business insurance, you may have to pay out-of-pocket for costly damages and legal claims against your company. Here, business insurance protects your company from losses that could badly impact your operations.
In this litigious society, a single lawsuit or liability claim canshut down your business, if you don't have business insurance. Sometimes, onedisgruntled employee, and it's over. Although you win the suit, you could goout of business due to the cost of legal defence. The solution is to takeliability insurance, and stay away from all these stress.
Are you prepared for a natural disaster, like an earthquake orflood? In such a scenario, P&C insurance covers the loss of property likebuildings, equipment, etc. Business Owners Insurance or BOP assures you thatthe insurer pays you the income your company would have made while it was outof action. This insurance does not only insure lost income but covers theprotection to pay employees, for up to 12 months.
As the owner, you are responsible for running the business. Butwhat happens if you suddenly stop "running" because of any serious disease oraccident or some other unfortunate incident and due to this you have to stayaway from your work for a long time.
Here, if you take company-owned life and disability insurancecoverage; you will get payments to cover the loss of income you generate. Inthe extreme situation of death or disability, it provides funds for thepurchase of your interest under a buy-sell agreement.
Having insurance also helps you in attracting and retainingqualified employees. Because, when job seekers look for benefits packages thatincorporate life, health, disability, and long-term care insurance, they liketo join the organization. If you don't offer these facilities, you may lose agood employee.
Many times it happens that when you enter any contracts andinsurance, the landlord's policy may ask you to include your business insurancepaper in the agreement file. If you are planning to borrow money to financebuildings, equipment or operations, the loan agreement will likely contain aninsurance need. The client may ask you to carry insurance papers in thesituation things don't go as planned.
Apart from all the facts and points, as said earlier you do nothave any crystal ball hidden in a closet that can predict what might happen inthe future. It would be great if natural disasters, injuries on the job orlawsuits never occurred, but no one can ensure such things. And that is why;it's best to be insured. When you have business insurance, you get a kind ofpeace of mind and focus on your business and its growth.