Own a Business? Here are 8 Important Reasons Why You Need Business Insurance in 2024

In running your business, you’ve worked extremely hard to reach the level of success you’re currently at, and you’re going to do everything you possibly can to protect it, as any company owner would… That’s why getting insurance is so important.

The thing to understand about insurance is that there’s no “cookie-cutter” sized policy. Depending on the type of company you’re running, you may need one specific type of policy, and then again, you might need multiple policies to provide the right coverage for you.

If you own an online startup, you may need coverage for libel and slander, but if you own a brick-and-mortar office, you might want general liability insurance from a company like SimplyBusiness for third-party property damages. You might look at this and think it’s going to eat up any profits you might incur, but it won’t. Business insurance is very reasonable, plus, without this insurance, you could cost your company way more than the cost of any policy.

The reality of owning a company is that when you first put together the plan for your business, insurance should have been included in the expenses… that’s just proper planning and should have been a major part of the factors that lead you to success.

If you own a company and don’t have insurance, take a look at some of the most important reasons why you need to stop what you’re doing and get company insurance.

Source: Insurance Competitors

1. You Need to Protect Your Employees

If you own a company with employees, you most definitely need to have insurance in the event they get injured while on the job. Your employees are the most valuable part of your organization, not the products or services you’re offering. When running a company with employees, you’re required by law to hold a worker’s comp policy, but in addition to that, you might also want to consider disability coverage as well, but you most definitely need to protect your most valuable asset, and that’s the employees.

2. You’re Protected Against “Acts of God”

According to CBS News, in the world of insurance, being protected against any act of God means that your business will be covered for events or accidents that were not caused by man. Typically, acts of God are natural disasters like floods, hurricanes, or tornados. Even fires that were the result of extensive lightning count as an act of God. You’ll want an all-risk or perils policy to help you with this type of situation.

Source: iiclam.org

3. Your Business Will Look More Credible and Trustworthy

Credibility is something that not too many business owners think of as a perk of business insurance but indeed is. People aren’t going to want to deal with a company that won’t be able to compensate them or provide some type of solution for them if something goes wrong with the product or service they’ve just purchased.

With certain organizations, you might see a sign that says, “licensed, bonded, and insured”… that’s not necessarily on display to come off as “flashy” but more so to assure potential customers that your business is a “safe bet,” so to say… that’s going to build trust in your customer base.

4. Protects Your Business in Legal Battles

Because we live in a litigious yet sensitive society, people are trying to sue companies for any and every reason. That reason alone is reason enough to make sure your business is protected. Can you imagine getting sued and not having insurance? One legal battle in court can be the beginning of the end of your venture.

Anything from a broken contract to a disgruntled employee can put a business in financial turmoil. The sad part is that even if you win the lawsuit, your business could still fold simply because it was extremely expensive to pay for your legal defense.

Source: Group Workd

5. You have Peace of Mind

Business insurance is something that’s better to have and not need than to need and not have. Having insurance not only protects your business and assets in the event of natural disasters or lawsuits, but the most important reason your company needs insurance that people forget about is the peace of mind it provides you.

In running your company, there are all kinds of factors that are out of your control that have a negative impact on your venture. The best way to ensure you have peace of mind is to be proactive about protecting your business from those factors that are out of your control… get your business insured the moment you set it up.

6. Because Future Is Unpredictable

No business owner has a magic key who can predict what can happen in the future. It’s your good luck if your business is protected against natural disasters, lawsuits, and injuries, but no one can give a guarantee that these things will never happen in the future.

For this reason, you need to be insured to overcome such consequences. With proper insurance, owners can have peace of mind.

Your contracts may ask for business insurance.

Every company makes contracts all the time. So, it’s vital to be aware of your contracts may require business insurance protection from you.

Source: OE Wilson Insurance Inc

Contracts include:

  • Renting a building from landlords
  • Needed in client’s agreements
  • Taking money to finance good
  • Loan agreements

7. Retaining Employees

Insurance is not only about protecting your company against disasters. It also helps in protecting and retaining qualified employees.

After salary, every credible employee looks for health, life, disability, and long-term care insurance benefits at the time of recruitment. If you do not offer such facilities you may lose good and qualified employees.

Source: Business Advice

8. Business Insurance Is Protective For Management

Your management liability insurance is important because it helps to cover the owner, CEO, or ‘main person’ who runs your business from expensive law-suits. In actual management, liability insurance protects those who work for non-profit organizations.