If you are starting a business, you may think you have everything set up properly without business insurance. However, business insurance is a crucial part of safeguarding your assets, which is why you should always have a policy in place. Here are three reasons every business owner should have business insurance.
You may feel like there is no way that any of your customers would ever sue you, but that isn't true. There are reasons that your customers may end up suing you, including trying to limit their liability on any contract you may have. Getting sued is expensive enough, but if you have to pay a settlement, that could wipe out your business. Business insurance can help to cover any settlement that you have to pay and help to save your business.
If there is one person who makes your business happen, for example, if your business is IT support and you have a genius IT person who helps make everything work well and comes up with brilliant ideas, you may want to look into key person insurance. Basically, this insurance covers your business in case that person dies or is incapacitated for a long period of time, and your business starts to suffer. Technically, this insurance is placed on the key person of your business, not your business itself, but it is part of business insurance, so you can add it on as an extra feature on your business insurance policy.
If you are going to get a loan to start or expand your business, you are going to want to have business insurance. The reasons for this include the fact that having business insurance is a sign to your potential lender that you are taking your business seriously. It shows that you value protecting your business and making sure that you can handle any risks. Having business insurance can give you another factor in your negotiation with your lender when it comes to how much you need to borrow and how much interest you are going to have to pay on that loan. Your insurance may be able to help you pay off the loan in case something happens to your business.
Having business insurance is important to your business. It's something that you should have from the very beginning of your business. If you always have it and don't let any gaps happen, it shows that you are truly committed to your business.