Insurance is one of these expenses that most of us have to bear. We take out policies to protect us in case we have an accident in our cars. And if our homes get damaged by natural disasters, insurance pays for them to get repaired.
Even in the business world, insurance is an accepted expense by firms of all shapes and sizes. You are no doubt wondering why your business may need insurance cover. After all, you could do so many things with the money you save by not paying for it, right? Let me give you eight reasons to help you change your stance on the subject:
1. You can’t predict the future
If you could tell what would happen in the future, you will no doubt end up rich beyond your wildest dreams! But, no-one (as far as I know) has such a magical talent. You also don’t know what could happen to your business in the future too.
2. It only takes one event to shut down your organization
A broken contract or employee issues could threaten the livelihood of your business. Insurance is there to protect you against such future events. Is the small cost saving each month worth the potential for financial hell?
3. You have responsibilities to your business and its workers
As a company owner, you are responsible for ensuring that everything is ship-shape. That means providing a safe working environment. If you happen to miss a safety check, it could have consequences for your firm. And, that usually means getting sued by an injured worker for compensation!
4. Some lawsuits could destroy your business
What would happen if someone died because of your firm’s negligence? It’s likely you will get sued by the person’s family. Insurance can cover the cost of a wrongful death lawyer for you to help your defense.
5. You can’t rely on people to be perfect
No-one on Earth is perfect. There are no guarantees that workers might not miss important safety checks. Nor can you guarantee that nothing bad will ever happen in your workplace.
6. Insurance can cover your firm against third party failures
Let’s say that you sell other people’s products. If those items are faulty, you might get sued by people injured using them. Your insurance can help settle those lawsuits and recover the costs from the manufacturers.
7. Your business might not protect you from personal liability
What some company bosses don’t realize is they could be liable for damages on a personal level. In some cases, you could end up losing your home and personal property, not just your business.
8. Insurance can help you recover from theft
The ugly truth about running a business is that you have to consider the prospect of theft. In some cases, it might be physical property that gets stolen. While in others, digital theft over the Internet could occur.
Insurance can help you to cover the costs of replacing stolen equipment. Often, such costs run into five-figure amounts.