10 Reasons Your Iowa Small Business Needs Insurance
Running a business comes with many risks. A lot of things that many of us don’t think about will come in and catch us completely off guard.
There could be a tornado that destroys some or all of your property, an employee can get hurt on the job, one of your clients can sue, etc.
Running a business comes with many risks. A lot of things that many of us don’t think about will come in and catch us completely off guard.
There could be a tornado that destroys some or all of your property, an employee can get hurt on the job, one of your clients can sue, etc.
For these reasons and so many other reasons, it is extremely important to protect your assets. The best way to make sure you are covered is to make sure your business is covered with an insurance policy.
Below, I discuss 10 reasons why your business needs to be insured.
1 It is the law in all states to have some form of business insurance
It is wise to discuss state requirements with your insurance agent. Many states require certain types of insurance for certain types of businesses. Additional polices may be required if you have employees. Not having insurance can result in legal fines, civil and/or criminal penalties, and exclusion from public contracts. All of this can end up costing you a lot more than the premium charged for an insurance policy.
2 Lawsuits and Litigation
We live in a very active “sue” society. If a lawsuit or a liability claim is filed and you don’t have insurance, your business could end. All it takes is one incident, one breach of contract, one angry employee, and well, it could be over. To ensure that you aren’t caught off guard, general liability insurance is something that you should definitely have.
3 Credibility
Having insurance makes your business look credible. This shows your potential clients and customers that you’re safe to work with. If something goes wrong, you have a way to compensate for it. Being able to market with a line like “licensed, bonded, and insured” builds trust and trust means business.
4 Your business remains active
Snow storms, ice storms, tornado’s, and hurricanes equal natural disaster. If your property and/or equipment is damaged, property insurance covers that. But what about the loss of income due to your business being closed? BOP insurance (business owner’s insurance) can help your business survive the disaster by protecting the business income.
5 Covers random acts
In the insurance world, “random acts” means “act of god”. This is any accident not caused by a human being such as floods, lightning, tsunami’s, etc. There are 2 types of P & C (property and casualty) insurance that can protect against those losses; all risk and peril- specific.
An all-risk policy covers events except those specifically mentioned. A peril- specific policy lists particular risks and cover fire, floods, and other specifically listed “acts of god”.
6 Protects human assets
As a business owner, you are required to keep the business operable. Things happen and there may be a time when you cannot operate the business due to an illness and/or injury. What happens if you cannot operate your business for weeks? Months? Years?
Company- owned life and disability insurance coverage provides payments to cover your loss of income. In the event of a serious disability or death, the policy provides funds for the purchase of your interest under a buy-sell agreement.
7 Protects your staff
One of your businesses most valuable asset is your employees. Of course, your services and products are great; however, this starts with an amazing staff. Because they are your most valuable asset, it pays to protect them in the event of an accident.
The law in your state may require that you carry worker’s compensation insurance; however, you should also consider disability insurance. Consider this, protecting your employee’s interest also protects yours against lawsuits and/or liability claims.
8 Helps attract and keep staff
Insurance isn’t just about protecting your business when tragedy strikes. It can have a positive effect on attracting and keeping qualified applicants and employees. The number one thing job seekers look for after a great salary is a healthy benefits package. If you don’t offer benefits like health, life, and disability insurance, you may lose great employees to a company that does.
9 Most contracts require insurance
Several things must be considered and come into play when it comes to insurance and contracts:Renting or leasing your business facility means that you may need to carry insurance because the landlord’s policy will likely not cover your business.Borrowing money to finance buildings, equipment, operations, etc. means that your loan agreement will likely contain insurance requirements.Contracts with your clients may specify the requirement of your business carrying insurance just in case something unexpected happens.
10 No one can predict the future
No one can predict the future. Even with planning, so many things can happen unexpectedly. For this reason alone, it is best to be insured.
With the right business insurance, your business will be covered and offer you peace of mind. Besides, you have a business to run. Let us worry about building your policy so that you can focus on operating your productive and profitable business.
