Startup founders and small business owners who have just started as independent entrepreneurs may testify that the budget is always tight in those early phases.
This is why it is normal and natural for entrepreneurs to ask why they need a business insurance policy. Most are keen on what they spend their cash on and analyze all potential expenses and investments to determine whether it is an unavoidable and necessary cost.
However, businesses should have certain types of business insurance that can protect them against general risks. Especially general liability insurance for business in Naples, FL comes in handy for the following reasons:
1. Lenders Need Insurance
Mortgage lenders would want proof of insurance before building or buying new buildings. In other words, insurance will come in handy to get the funds your business requires to keep running.
Without it, your business model won’t obtain the proper funding required to take the first leap, or your established business will lack the finances to compete and evolve better.
2. Retain and Protect Employees
As an entrepreneur with a small business, your workers should be a priority. Protecting all your employees through business liability insurance is a wise move. It will make your employees feel secure in your business and can protect them against losing their employment when lawsuits come up.
You would also want to consider how helpful business insurance will be in attracting new workers. Business insurance is a perk, especially if you offer dental or health insurance. This, in turn, will help expand your team and encourage them to work extra hard.
3. Protect Customers
Business insurance may help cover all your clients. This is especially true if you have a BOP (Business Owner’s Policy). According to experts at Del Toro Insurance, the BOP policy combines business liability and business property coverage into one so as to protect your company against product liability, bodily injuries, property damage, and advertising and personal injuries.
For example, if your client breaks their legs and wants medical help from a hospital, your BOP policy may cover medical expenses.
In addition, there is a data breach insurance policy that can protect customers and businesses when security breaches happen. For an online business, insurance may pay for the following:
- Legal fees
- Identity protection solutions
- Liability
- Public relations
4. Comply with the Law
In several parts of America, some insurance policies are necessary for businesses that operate there. Not buying them violates the law and may result in fines and jail time. For instance, in all states except Texas, many businesses should have workers’ comp insurance.
5. Acquire More Customers
The bigger the clients, the more they will likely ask for a written agreement that needs you to have E&O (errors and omissions) or professional liability insurance. Your business should leverage such opportunities. This kind of business insurance policy is vital as it is capable of covering professional mistakes that you or your employee has made.
6. Protection from Natural Disasters
In the case of natural disasters, your business operations will be affected severely. Although property insurance coverage provides protection for damages caused to equipment, property, and buildings, that would be it.
With liability insurance coverage, you will be compensated for the money you could not generate when your business operations were shut down. This will help your business recover once the storm passes.
The Takeaway
You can get a business insurance policy by taking the time to search online. However, talking to several people within your industry and requesting referrals from them will still be a good idea. Rates may vary, but you will get a good deal with the right broker.