Do I Need Business Insurance?
Starting a business can be expensive and risky. This is especially true if you’re kicking off a small business or startup, where money is tight around the board. If you’re trying to prioritize your funds, you might be tempted to put business insurance on the back burner. But if you run into unexpected trouble, not having business insurance can be a disaster.
If you’ve found yourself asking “my business isn’t even profitable yet, why do I need to buy insurance?” this blog is for you. If your business is established and profitable, this blog is for you too. The truth is, every business needs insurance. Let’s explore the reasons why.
Types of business insurance
There’s no one single type of business insurance. To determine which kind is best for you, you’ll have to consider the unique needs of your business. We can work with you to determine a custom insurance policy, but some common kinds include:
Liability insurance - This covers legal fees and obligations for injuries, accidents, and negligence. Even if you run your business out of your home, you may need this as homeowner’s insurance doesn’t cover business risks.
Workers compensation insurance - This takes care of medical care and lost wages if an employee is injured at work.
Property insurance - This covers you if any business property is destroyed or lost due to storms, fires, floods, theft, or vandalism.
Identify theft insurance - This covers your business in case of a data breach. Sometimes it also covers customers who are victims of identity theft, too.
Business insurance brings peace of mind
Running a business is stressful. You probably feel responsible for every aspect of your business, from running numbers to ensuring your staff is doing everything properly. But no matter how well you run things, there will always be risks that are outside your control. A fire can do devastating damage to your building. A leaky pipe can flood the basement. An employee might get hurt on the job.
Even when unlikely, these risks can weigh on your mind. Business insurance is a way to ensure that these problems won’t derail you financially. The peace of mind is worth the cost of insurance, even if you never have to use it.
Your personal assets could be at risk
Even if your business is set up as an LLC, there are some circumstances in which you could be personally liable. If you don’t keep your assets completely separate or if you personally guarantee a business loan, business insurance could save your personal assets in case of an unforeseen disaster.
Keep your employees happy
Insurance isn’t just about protecting your business. It’s also an excellent way to offer better benefits to your employees. The ability to cover your employees in case of disability, for example, is a great way to attract top talent to your company. Not only can insurance improve benefits, it can also help ensure you’ll still be able to provide great benefits if something unexpected happens to the company that would otherwise create a financially difficult situation.
Getting sued is expensive even if you win the case
Even if you’ve done nothing wrong, you can still get sued. This means time away from work, lawyer fees, and a potentially damaged reputation. Regardless of how the case turns out, this can be expensive.
Business insurance, especially liability insurance, protects you against claims of property damage or injury from a third party. This can be your saving grace if you get sued.
Protect your contract work
Whether it’s with a customer, client, or third-party contractor, your contracts are legally binding, which means they have the potential to cause legal problems from claims related to those contracts. Some types of business insurance can protect you if you are sued related to errors in that contract, missing deadlines specified in the contract, or any other missteps that are perceived as a breach of contract.
Protect yourself from cybercrime
Nearly every business has some type of online component these days. This puts you at risk for cybercrime. If you’re doing business that involves transferring funds online or storing customer information online, this risk is even greater. Adding a cyber insurance policy to your business insurance plan protects against these potentially devastating attacks.
You want to secure a loan
If you need a business loan, having insurance will likely make the process of getting that loan both cheaper and easier. Without insurance, any loan you can receive from a bank will have a much higher interest rate than it would otherwise. If your business is a startup that needs venture capital funding, potential investors will also be much more likely to give you their money if they know you have insurance.
Get business insurance through Streller Agency
No matter what kind of business you run, Streller Agency has the ideal business insurance plan for you. Our expert agents will talk you through your options and help you decide what’s best for your company based on what makes you unique. We’ll also help ensure the best rates possible. Start by requesting a quote today.
