If you own a business, it’s imperative to carry business insurance in some capacity. Here are 5 reasons why you should consider having business insurance:
Local and State Laws
If you have a business with employees, then you must carry Workers’ Compensation Insurance. Also, depending on your industry, often times you’ll need to carry other types of insurance. For example, if your company has vehicles, you’re required to have Commercial Auto Insurance.
Handle Lawsuit Legal Bills
Small business owners are often targets for lawsuits. If a customer slips and falls on your property or you sell a product that hurts someone, you could get sued. That’s why you should have General Liability Insurance, which helps cover your liability for third-party property damage and injury resulting from your daily operations.
Recover from Natural Disasters
Unless you have flood insurance, you’re faced with three choices for your business: paying recovery costs out of your own pocket, taking out a loan (thus incurring debt), or closing your doors- maybe even permanently. Unfortunately, many businesses are forced to choose the third option. Make sure your business is protected with Flood Insurance.
Recover from Data Breaches
Every business, regardless of industry, has the responsibility to safeguard customer data. This can be in the form of personal identifying data such as addresses, phone numbers, social security numbers, and other company data. If there is a data breach, whether electronically or by paper, this can lead to immense financial damage and hurt your company’s reputation. Cyber Liability Insurance (Data Breach Liability) is there to protect your company in the event of compromised data integrity and privacy.
Cover Your Business’s Errors
If you or your company makes a living off your expertise, Professional Liability Insurance (Errors & Omissions Insurance) is imperative for your company. This includes professions such as engineers, lawyers, doctors, IT consultants, accountants, architects and more. If your work fails to meet the standards set by your state, industry or your contract with a customer, you open yourself to substantial risk which this insurance helps to compensate for.
