Running a company comes with some degree of risk. It may be that your team gets injured on the job, or that you experience a natural disaster that completely destroys your property. On top of that, you have the risk of your client filing a suit against you or even contract breaches. For these reasons alone, you have to make sure that your business is completely insured. If you don’t, then you may end up experiencing issues in the future.
It’s the Law
According to the SBA, the law states that you have to give your employees certain types of cover. You have to make sure that you cover them against compensation, disability, unemployment and more. This will, of course, depend on the country or state where your company is located. If you do not carry the right insurance then this will result in a fine, a civil suit or even criminal penalties. This is the last thing that you need, not to mention that it will cost you way more than the insurance policy itself.
You Could Potentially Be Sued
We live in a somewhat litigious society. In the event of a lawsuit or even liability claim, if you do not have insurance then your business could easily fold. All you need is a single broken contract or even an employee that is disgruntled. Even if you happen to win the legal suit, you still need to pay out for a lawyer who can represent you. Don’t waste your time thinking about what could happen, when all you need to do is take out liability insurance. If you do, then you may find that you get the peace of mind you need so that you can concentrate on what actually matters, which happens to be running a successful business. If you want to put yourself at ease, take out Dutch Insurance for liability cover. This will help you to protect both yourself, and your business.
Keeping your Company Running
What is going to happen to your company if you happen to experience a natural disaster? What would happen if your premises became completely flooded? Sure, you could take out cover to help you repair the building in the event of a flood, but this would not cover you in the event that your business is closed. This is where BOP comes in, or Business Owners Insurance plays a huge role as it will help you to protect yourself in the event of an income loss. The way that it works is essentially that the insurer will pay your company the income that it would have generated, had the disaster not happened or had you not been forced to close. On top of this, it also greatly compensates you for any normal operational expenses that you would have experienced during this time. Some companies choose to include payment protection for employees, which is done up to 12 months.
Making you look Credible
Another reason why you should really take out insurance is because it makes you look credible. Business insurance shows your clients and your customers that you really are a safe bet. If anything does happen to go wrong when you work for them, then you can rest assured knowing that you have a way to compensate. That is the main reason why home service companies tend to carry the statement “insured, licensed and bonded”. It builds trust which, believe it or not, is actually the currency of this modern-day economy.
Protecting your Team
You have to know that the most valuable asset you have is not the services you offer, and it is not your products either. It is actually the team who you have working for you. It really does pay for you to protect them in the event of an accident. The law states that you need to have worker’s compensation cover and that you also need to think about offering some kind of disability coverage too. Even if you have to charge your team for some of the cost, you have to make sure that you provide them with this because if you don’t, then you may end up really struggling in the future and this is the last thing that you need. If you need to take out insurance, then remember that there are plenty of companies out there who can talk you through everything you may need to know.
Interesting Related Article: “Top 5 small business insurance solutions of 2020“
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