Running a business comes with financial risks that can be unavoidable at times. Protecting your business with insurance is the first step in minimizing losses related to thefts, injuries, property damages, or lawsuits. If you are still considering whether or not your business needs insurance, check out the following five reasons you should get it as soon as possible, outlined by Scott Crockett, Everest Business Funding’s CEO.
Reason #1: Save on Interest Rates
Not all business owners are aware, but your interest rates may be higher if you don’t have business insurance coverage. Lenders want to protect their assets, so if you plan to apply for a business loan, it’s in your best interest to get insurance. This will help you convince the lenders that you will keep paying off the loan even in the event of a lawsuit or natural disaster.
Reason #2: Protect Yourself in Case of a Lawsuit
You may be tempted to believe that your clients would never sue your company, but in many cases, lawsuits arise unexpectedly, requiring you to seek legal advice and representation. Lawsuits happen when a client feels that you’ve breached the contract or in cases when they got injured by using a product they purchased from you. Without business insurance covering such cases, you may have to pay considerable fees out-of-pocket.
Depending on the policy, general liability insurance may cover expenses such as lawyer fees and settlements, damages to the property, medical costs for injured people.
Reason #3: Recover Your Assets in Case of Theft
Even if you run a digital business, the chances are that you have equipment that helps you fulfill your offering. Without business infrastructure, many companies are inoperable, so to protect your business from vandalism, burglary, theft, or loss of equipment, you need business insurance coverage. Most insurances compensate you for broken glass or damaged doors, funds stolen from registers, inventory, or office equipment.
Reason #4: Provide Your Employees With Workers’ Compensation
A business that has employees is legally responsible for obtaining insurance that includes workers’ compensation coverage. It protects your business in case an employee gets sick or injured while completing a work-related activity. In that case, they will get help covering their medical expenses and get paid while recovering from illness or injury. In addition to workers’ compensation insurance, many states require businesses to have unemployment and disability insurance.
Reason #5: Give Yourself a Peace of Mind
The most important reason to get business insurance is to have peace of mind. Various unpredictable events can happen with your business, such as natural disasters, accidents, and crises. In these emotionally charged situations, the last thing you want to think about is the losses your business may endure. Getting business insurance is not only going to help you cover the most common business losses but will also protect you from unnecessary stress.
About Scott Crockett
Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett’s track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.