If you’re just beginning the crazy and sweet journey into the entrepreneurship world, you’re probably overwhelmed with all the new challenges this sort of voyage brings on.
Being your own boss does sound pretty cool but the real truth is that’s a lot harder than we all think.
In the beginning it’s even harder, because your business is not profitable yet, but expenses are unavoidable.
One thing many small business or startup owners tend to overlook is business insurance.
They even question it – do I really need one?
Here are five major arguments to consider while choosing the right insurance for your business:
- Protection of your investment
- Protection of your employees
- Your business credibility
- Uncertainty of the future
- Some contracts will probably require it
Protection of your investment
Imagine some unexpected natural disaster happens, which can either ruin your business property or keep you out of business because of a state of emergency.
Maybe you’ll be unable to operate your business during the repairs.
Having the insurance in this case can really help you go through this hard period for your business and survive.
This really helps because even if your business is closed for work, ongoing bills are coming and need to be paid.
Protection of your employees
Even when you get your business protected by insurance, there is one more valuable asset you’ll need to protect. Maybe the most valuable.
Your employees.
Taking care of your employees is not to be considered an expense. It’s an investment. Working force – that’s the force that keeps your business running.
Also, it’s mandatory in most cases.
Your business credibility
Having insurance for your business will help in upgrading business credibility.
It’ll make it more attractive to potential new employees or business partners and also can mean a lot to your landlords, if you’re renting property or office furniture presenting you as a reliable business owner.
Uncertainty of the future
Owning a business can be a constant struggle. You’ll never know how the market is going to flow and what it’ll mean for you.
It’s true that we can’t be prepared for everything in life, but when you’re taking that one concern to mind by insuring your business, you’ll be unburdened and will have more energy to bring in everyday life.
Some contracts will probably require it
Doing business indicates collaboration with other businesses and that often requires concluding the contract. Some business partners could refuse future collaboration with business without any insurance.
Partners or client contracts may state that it’s obligatory to have insurance just in case things don’t go as planned.
Types of business insurance
Depending on the size of your business, the industry you’re in or the type of business you’re owning you can choose between different types of business insurance.
Here are the most common types of business insurance:
General liability insurance
General liability insurance defends you from declaration of property damage or bodily injury. This means if your business is responsible for someone’s injury or someone’s property gets harmed by your business.
Property insurance
This type of insurance keeps safe all your equipment, inventory and assets from any natural disaster or theft. It compensates you for the lost or damaged equipment as well as the lost income for the time until you replace your stolen or damaged assets.
Business owners policy
This type of insurance is a kind that combines different types of coverage. Usually it combines general liability insurance, commercial property insurance and business interruption insurance. But you can choose coverages that suit your needs the best. It’s probably one of the most affordable insurances for small businesses.
Commercial auto insurance
If you own a car or truck or van for the purpose of business, then this is the type of insurance for you to consider. It protects you from the cost of damages that may happen while you or your employees use a vehicle for business purposes.
If you’re doing any business that’s based on using a vehicle, then this is a must for you.
For example, if you’re an owner of a truck transportation business you should definitely consider one of the most popular subtypes of this kind of insurance called hot shot insurance. This insurance is specialized for trucks used for quicken cargo transport.
Workers compensation insurance
You’ll need this type of insurance if you have one or more employees. So, if you have employees, period. It covers all medical expenses, lost wages and disability benefits for work related injuries or illness and is required in almost every state in the USA.
Product liability insurance
Product liability insurance provides you protection from any problems caused by your product itself. For example if a customer claims your product produced them injury like some allergic reaction or harmed them in any way, or did a damage on their property.
Cyber liability insurance
This insurance helps you with fighting against cybercrimes. It covers the cost of handling issues after a cyberattack when, for example, your customer private information gets compromised from your database.
Does your business need insurance?
It’s a necessity and you should consider it an investment because it actually is one.
Make sure to think through carefully when choosing the right insurance for your business and don’t hesitate to hire an insurance agent to help you with this.
Choosing the right kind of insurance can save you money in the long run and will give you a peace of mind and that’s priceless.
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Tijana Milanković is a freelance content and copywriter. She is also interested in Social Network Marketing and has been in the marketing industry actively for over five years. Writing is her passion and one thing she aims for in writing is good research and creativity.
