05 May Is Insurance Essential for Your Small Business?
Perhaps you’ve invested all your savings to start your own business. Now it’s time to protect your investment with insurance. Here’s a look at how acquiring small business insurance can help make things easier.
Operating a successful small business takes a lot of hard work and involves ups and downs. Dealing with all of the different risks can be overwhelming at times, but small business insurance can protect you during unpredictable times. The policy protects your investment if a liability dispute arises. Without small business insurance, the at-fault mistake and related losses could devastate your business. It’s also important to recognize that you need insurance to legally operate your business. As a small business, you are especially at risk of suffering damage that could harm your long-term revenue. Small business insurance provides multiple layers of protection.
Is It Possible to Operate a Business Without Insurance
In most states, you are required to purchase at least liability and workers’ compensation insurance to operate your business legally. If you don’t have insurance in place, handling an expensive liability claim could take a toll on your finances. Trying to operate your business without insurance will likely lead to a fine, and possible legal action could be taken against you.
Without insurance, you will be left unprotected in the following circumstances:
- An accident involving your business vehicle causing third-party injuries
- If one of your employees is injured on the job, requiring you to cover their treatment out of pocket
- If your equipment is stolen or damaged due to a natural disaster
Therefore, purchasing business insurance is critical to the long-term financial benefit of your business.
Benefits of Small Business Insurance
Small business insurance can prevent you from going into debt because you do not need to cover losses out of your pocket. Keep in mind that every business faces different risks. Small business insurance policies are flexible enough to adapt to your unique business needs. If your business involves a lot of online transactions, you can add cyber liability coverage to cover losses resulting from a data breach. If you sell products, you can add product liability insurance. Product liability insurance protects your business if a defective product causes harm to one of your customers. You can add business interruption insurance to cover your business’s operating costs if you are forced to shut down for a few months due to a covered loss.
Things to Consider When Buying Small Business Insurance
The type of small business insurance you need depends on the type of your business, the number of employees you have, your location, and some other factors. An insurance agent can help you figure out which coverages align with your current needs.
Consult With Kevin S. Dougherty Insurance
Small business insurance is vital to the long-term success of your business. The policy is designed to protect you when unprecedented situations could destroy everything that you have worked for. If you have any questions about small business insurance, contact our team here at Kevin S. Dougherty Insurance. We are always here to assist you.