Business insurance helps business owners to stay protected from various types of unexpected costs that can come up while running a business. As per Charles Spinelli, lawsuits, natural disasters and accidents can be highly detrimental for a business unless it has the right insurance coverage. The federal government requires businesses with employees to have workers’ compensation, unemployment, and disability insurance in place. Certain states also require additional insurance.
Charles Spinelli mentions how business insurance is helpful
Business insurance is among the most efficient tools for business owners to manage risk, and significantly aids companies to manage losses arising from unplanned or unforeseen events. A cyber-attack, natural disaster or even a personal liability claim can wipe out a business. To protect a business from any such eventuality, good insurance coverage is highly vital. There are many ways business insurance is helpful, including:
- Can protect employees: Workers’ compensation insurance is a business insurance coverage required by most states. If case the employees of a company suffer work-related injuries or illnesses, they can be provided with compensation for medical care, missed wages, funeral benefits.
- Can protect the customers: Business instance options like a Business Owner’s Policy (BOP) can help cover the customers. These policies combine business property and business liability coverage to help protect a business from property damage, bodily injury, product liability, as well as personal and advertising injury. For instance, if a customer slips and falls at a store, and breaks their leg, BOP can help pay for their medical costs. Business owners can also invest in data breach insurance that can protect a business and its customers in the situation of a security breach.
- Can help recruit and retain good employees: While offering a fair salary is obviously important employees today look for more than the pay scale when they search for jobs. They try to find employment that can provide them with the needed benefits like life and health insurance. Hence, businesses without insurance may miss out on attracting and retaining the most qualified and experienced employees.
- Can provide protection against natural disasters: Many places have risk of flooding, hurricanes and tornadoes. Fire accidents can also happen due to a myriad of reasons. Insurance is needed to protect a business and its assets if and when a disaster strokes.
- Can help with lawsuits: Any company may get sued and have to deal with hefty legal fees. One of the biggest reasons to invest in business insurance is to help cover these expenses.
- Can build credibility: Charles Spinelli mentions that business insurance does more than protect a business. Having a robust insurance coverage shows the contractors and customer that the business takes risk management seriously.
Owning and operating a business is not at all easy. In fact, it can be quite a risky endeavor. Having business insurance is important to keep the venture protected against potential threats to its bottom line. Majority of the insurance policies have deductibles, which is the amount the insured must pay toward a claim before the insurance company provides compensation. Usually, the higher the deductible, the lower the premium or cost of the insurance.
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