You need business insurance. Plain and simple. It may seem like a headache or stressful, but a company cannot function without business insurance, in many cases legally. Business insurance is a requirement by law and by function of your professionalism and is one of the first things you should do when you start your own business.
There are a lot of reasons out there to have business insurance.
But if you were to go through the top five, that includes legality, credibility, safety for you, safety for employees, and your protection during potential lawsuits you may face as your business grows and evolves.
Below are 5 reasons to have business insurance for your company.
It’s a Legal Requirement
The short of it is that most states require businesses to hold some form of business insurance in order to stay in business. Depending on where you are and what you do, you may require specific types of insurance for the work you do which may be more hazardous than others. Make sure to check your local legal requirements.
Workers Compensation is a no-fault policy. Your employee collects benefits and gives up the right to sue your business.
It Protects Employees
Having business insurance can increase your talent retention. People want to know they will be taken care of if something happens. Business insurance can cover employees who suffer work related injuries and help provide long term benefits if necessary.
It Builds Credibility
Customers and employees both like to see that a business is insured. This is especially important if your company takes on contract work of any kind. If your employees are working in peoples’ homes or at other business, you need to be insured in case something goes wrong. Seeing that you have the ability to pay for any potential damages during a job or project will make customers and clients more likely to trust you and make your employees feel more secure.
It Protects You
Ultimately, insurance is about protecting the business, but it does that in more ways than you think. It protects management from liability. But it’s not just there to protect you in the legal sense. It protects your physical structures from flooding, fires, hurricanes, and other natural disasters or “acts of god”.
It Helps You During Lawsuits
The longer you’re in business, the more likely you’re going to be handed a lawsuit at some point. It’s just part of owning a business. But no matter what the lawsuit is, insurance can be a huge benefit when a lawsuit comes around. Insurance can help cover legal costs and if someone is hurt on your property, insurance can pay the bills, so you don’t have to.
Related Questions
Does business insurance expire?
Yes. Like any insurance, coverage can lapse which results in gaps of coverage or complete loss of coverage. So, you need to make sure you’re keeping on top of your insurance coverage schedule.
What does insurance cost?
This will depend on a lot. It will depend on your state, the type of work you do, and the level of experience you have. General liability may start at $50/month with additions like payroll and sales.
Questions? Talk to your insurance provider about potential business insurance for your company. If you live in Michigan, Scully Monroe is happy to help.
Scully Monroe Agency at Howell, MI provides the best insurance protection at the most reasonable price. We understand businesses in the community and offer insurance packages for all sizes of businesses with tailored programs to fit their needs.
Our Business Insurance Products include general liability, commercial property insurance, commercial umbrella insurance, business auto insurance and more. Call and speak to an insurance expert about your options today! Free Quotes