Startup City Magazine
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WHY DO YOU NEED BUSINESS INSURANCE?

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WHY DO YOU NEED BUSINESS INSURANCE?

Puja Bhardwaj || Startupcity Magazine

Running a business holds a lot of risks, from a natural disaster to physical damage. Good luck and positive thinking are not enough to protect your business from losses. Unfortunately, bad things happen to the most unsudden moments. Here, business insurance covers the costs associated with property damage and liability claims. If you don’t have business insurance, you may have to pay out-of-pocket for costly damages and legal claims against your company. Here, business insurance protects your company from losses that could badly impact your operations.

In this litigious society, a single lawsuit or liability claim can shut down your business, if you don’t have business insurance. Sometimes, one disgruntled employee, and it’s over. Although you win the suit, you could go out of business due to the cost of legal defence. The solution is to take liability insurance, and stay away from all these stress.

Are you prepared for a natural disaster, like an earthquake or flood? In such a scenario, P&C insurance covers the loss of property like buildings, equipment, etc. Business Owners Insurance or BOP assures you that the insurer pays you the income your company would have made while it was out of action. This insurance does not only insure lost income but covers the protection to pay employees, for up to 12 months.

As the owner, you are responsible for running the business. But what happens if you suddenly stop “running” because of any serious disease or accident or some other unfortunate incident and due to this you have to stay away from your work for a long time.

Here, if you take company-owned life and disability insurance coverage; you will get payments to cover the loss of income you generate. In the extreme situation of death or disability, it provides funds for the purchase of your interest under a buy-sell agreement.

Having insurance also helps you in attracting and retaining qualified employees. Because, when job seekers look for benefits packages that incorporate life, health, disability, and long-term care insurance, they like to join the organization. If you don’t offer these facilities, you may lose a good employee.

Many times it happens that when you enter any contracts and insurance, the landlord’s policy may ask you to include your business insurance paper in the agreement file. If you are planning to borrow money to finance buildings, equipment or operations, the loan agreement will likely contain an insurance need. The client may ask you to carry insurance papers in the situation things don’t go as planned.

Apart from all the facts and points, as said earlier you do not have any crystal ball hidden in a closet that can predict what might happen in the future. It would be great if natural disasters, injuries on the job or lawsuits never occurred, but no one can ensure such things. And that is why; it’s best to be insured. When you have business insurance, you get a kind of peace of mind and focus on your business and its growth.

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