People who are planning to enter the business industry needs to be aware on the fact that running one have inherent risks like having an employee injured on the job, alleging a contractual breach, clients will file a suit or damages due to natural disasters.
Whatever the reason may be, it is essential that you are going to protect not only your business, but personal as well. The best way on how you can do it is to make sure that your business is truly insured.
Through this article, you will gain some understanding as to why your business needs insurance.
Part of the Law
Based on the SBA, the law will need a business with employees to give a certain type of insurance like unemployment and disability and workers compensation, which will however depend on the state where the business is located.
Failures in following the needed coverage may result to fines, exclusion from public contracts, criminal or civil penalties or a cease and desist order that can potentially cost you more than the price of having an insurance policy.
Can get your Sued
We need to bear in mind that we are living in a litigious society. When there’s a liability claim or a lawsuit and you don’t have the insurance, there’s a good chance that your business will fold. Your business could easily become over even when there’s just one accident, one broken contract or you have a disgruntled employee. Though there’s a chance that you could win the suit, there’s still a probability of going out of business due to the cost for your legal defense.
Rather than having to worry on what may happen, a liability insurance will be able to give you the peace of mind, which then helps you to concentrate more on what’s more important.
Providing Protection towards your Employees
You need to always remember that the most valuable asset is not really the services or products that you offer or perhaps the equipment that you take care a lot to maintain or the brand you have been protecting or built. It is in fact the business’s employees, which truly pays to provide them protection in the event of accidents. The law will require you in providing a worker’s compensation, but you also should offer disability coverage even when you need to charge your employees for the portion of its cost. You should always remember that being able to protect the interest of your employees is a way of protecting yours from liability claims and from lawsuits.
Having proper business insurance can give any small business owner peace of mind and they will also put their focus more on things that are far more important.