Business Liability Insurance: 9 Benefits of Having Insurance
If you could have one superpower, what would it be?
As the owner of a business, you would probably want the ability to protect yourself from any sort of harm. Business liability insurance is the corporate equivalent of that superpower. It is an arrangement that protects your company from possible financial loss.
If you could shelter your company from having to pay liabilities for unfortunate circumstances, from having to deal with events that could otherwise bankrupt you, wouldn’t you jump at the chance?
If you are still contemplating whether having business insurance will help your company to grow, this article explores the reasons why business liability insurance will be beneficial for you.
1. It’s Required by Law
It is actually required by law for you to provide some form of insurance protection for your employees. Required insurance includes disability coverage and workers’ compensation.
Failing to abide by these laws, even if it is by accident, will result in fines, penalties, and an inability to hire or maintain any employees.
2. Protection From the Unexpected
The reality of owning a business is prone to unexpected circumstances. You can plan to the best of your ability, but sometimes things go wrong. A customer may experience an accident on your premises and file a lawsuit against you.
In other cases, sudden catastrophes like natural disasters may destroy your property and leave you reeling with loss. The best way to prepare for what you never know will come is by having business liability insurance. This keeps your business afloat in the toughest of times and ensures that you can weather any storm.
3. Business Liability Insurance Increases Your Business’s Credibility
When you have business liability insurance, you can set your clients and customers minds at ease. They may be worried that if something happens to your business, then it will somehow adversely affect them.
They could potentially lose out on something by entering into any sort of a relationship with you. Telling them that you have insurance against any possible circumstance that may be of concern to them will set their minds at ease.
4. Be More Attractive to Employees
When looking to hire the best people for your business, know that they are also looking to see if you are the best company for them. Providing insurance will immediately make you more attractive to prospective employees.
These plans go a long way in making them feel safe when working at your company. Even if workplace-related risks are low, providing that safety net shows your employees that you care about them as people.
5. Business Liability Insurance Protects You From Employee Lawsuits
Facing lawsuits from employees can be more damaging than dealing with customer lawsuits. This is because your employees have a more intimate knowledge of how you run your business. Win or lose, the process will cost you.
If you want to grow as a business, it is always ideal to prepare for these worst-case scenarios. Having an employee file a lawsuit will look very bad to any lender who you are hoping to borrow money from. Minimizing the damage by having insurance is key in ensuring your company survives something like this.
6. Enables You to Sign More Contracts
Imagine having the contract of your dreams be laid out in front of you after months of marketing and negotiating. Now imagine if, by just one small requirement of needing to have business insurance, you have to say that you don’t currently own any and they take their business elsewhere.
Some business contracts require that you have certain types of business liability insurance. This is because they fear that if something happens to your company, this increases their vulnerability.
If you are facing a particularly damaging lawsuit, for instance, and desperately need more money, your clients may worry that you will charge them more as the solution. Having business liability insurance can therefore help you be awarded the bigger and more complicated contracts.
7. Ensures Business Continuity
All the above circumstances can spell out doom for an uninsured company. At the end of the day, no matter how fast you grow and how good things are going, if you don’t properly prepare for situations of catastrophe, your business will always have to tiptoe on the edge of survival.
Having business liability insurance will maintain your business through the worst of times. This gives your business enough stability to allow it to grow. If you are going to spend lots of time and money to ensure your company succeeds, then reducing the risk of failure is only logical.
8. Protects Your Company’s Cash Flow
When bad things happen, your business’s cash flow may suffer alongside it. Having business insurance prevents this from happening. Instead of having to pay for everything out of your pocket, you have plans in place that will minimize the blow on your cash flow.
Cash flow is, of course, the engine of your company and is instrumental for its growth. Having that financial cushion is important to allow your company to keep running.
Insurance means you will not have to pay all the liabilities awarded against you, which will give you space to succeed even in the midst of difficult times.
9. Plans for the Future
The best way to make sure you have continued business growth is to plan for the future. This can come in the form of securing life insurance policies for the most important employees of your company.
Losing a key senior member of your management team could cause some serious financial problems for your company. However, by having key members of your management team covered by life insurance policies, it will potentially safeguard your business against financial losses.
Business Liability Insurance Protects Against Almost Anything
Having business liability insurance drastically reduces the possibility of failure when you are trying to grow. It prevents you from losing your business over unforeseen stumbling blocks such as lawsuits or natural disasters. If you ever want to run your company with less fear, you need business insurance.
If you need business liability insurance, contact us.