Running a business is risky. All it takes is one trip or fall and the firm could be in front of a judge. And, the courts don’t take too kindly to companies that don’t believe in health and safety. Sadly, it’s likely the gavel won’t come down in your favor. It’s for that reason you need insurance: in case the worst happens. Think of it as a backup plan to protect assets and cash flow should you get sued. It’s tempting to see it as another expense, but it’s more than that.
Below are four reasons it isn’t a scam.
It’s the Law
Imagine driving a car without insurance. You would end up in jail as soon as the police spotted the vehicle. Running a business is a similar deal. Should the authorities find out there is no protection for your employees, they will come down on you hard. Fines and penalties are only the beginning and the situation can escalate out of control. So, it’s best to follow the law of the land and provide everything workers need. Compensation, disability and unemployment are three examples of policies which are mandatory. For a full list, check out Forbes for more info.
It Covers More Than You Think
In the past, policies may have stretched to cover things such as contents and general liability. They were not very inclusive, and that is why entrepreneurs thought they weren’t necessary. There wasn’t much bang for their buck. Today, it’s a different story. World Insurance Associates has a range of features, from liquor to food contamination and vehicle coverage. There is even a cyber liability clause. In an era when a hacker can bring down a company from their bedroom, it’s vital to consider data breaches. All you have to do is choose the one with the best features for the cheapest amount.
You Will Get Sued
Some people will see the title and think it’s a bold statement. It isn’t; it’s the way the industry works these days. Technology means a small business can compete with big firms. To keep them down, the giant corporations use their resources to maintain the status quo. And, that’s without the inevitable suits regarding employees and intellectual property. Sadly, getting sued is par for the course and you don’t always win. Even if you do, there are costs. Business insurance should cover the expenses and limit the damage. Otherwise, the money will come out of your pocket.
Makes You Reputable
The brand will have a huge role to play in this because it reflects on the business. However, there are other features which clients and customers look for when browsing the market. Insurance is one of them as it shows that there is a backup plan in place. Neither party wants anything to go wrong, but if it does, it’s nice to be able to make a claim and get a refund. Clients and customers know this and use it to their advantage.
Do you think business insurance is still a scam?