You’ve invested in your small business. You’ve put energy and effort into getting it started and opening the doors. Protecting your investment is an important element in helping ensure you have a successful business.
There are different types of insurance that can help businesses. Each type of business insurance helps protect you and your business in different ways. Whether it’s property damage, giving your employees benefits if they get sick or hurt from their job, or covering the costs to help your business recover from a accident, Guardian Life’s business insurance helps businesses prevail through the unexpected.
Most businesses start with general liability protection, commercial property, business income, workers’ compensation, and professional liability coverages. Some benefits to having business insurance include:
Business Insurance Helps to Minimize Financial Losses
Different types of insurance can help prevent potentially ruinous situations for your business. It can help protect you and your business in different ways. From repairing or replacing property damaged by a covered loss to helping cover the legal costs from a lawsuit, business insurance can help your business through the unexpected.
Without business insurance, you could be on the hook to pay for repairs, legal fees, replacement costs, and medical costs. And if you don’t have the finances to cover it, it could put your business in a bad position.
Increases the Credibility of Your Business With Business Insurance
If you show your clients or customers proof of insurance, it gives them peace of mind and can increase your business’s credibility. Your customers will know they’re working with an insured business and your work is protected.
Depending on the industry you’re in, some contracts may require proof of insurance before work can begin. Having business insurance can also help you in negotiations.
In the Long Run, You Can Save Your Business Money
Purchasing business insurance is only one component of minimizing your business losses. Pairing insurance coverage with the right risk management strategies can save your business money. How? Claims and lawsuits can be costly. Implementing good risk management practices can help minimize the chance of a lawsuit. And with fewer claims on your policy, you may end up paying a lower insurance rate.
Consider implementing these risk management practices at your company:
- Provide clear, easy-to-understand contracts. This can decrease the chances of a disagreement between you and a customer or client. If everyone is on the same page, lawsuits may be less likely to occur.
- Ensure a safe work environment for employees. Regular training sessions to make sure workers are safe and understand their job can lead to less injuries or property damage.
- Train employees on business equipment. When workers know how to use business machinery or equipment, it can decrease the chance of an injury. It can also help prevent a customer’s property from being damaged.
Protect Your Business From the Unexpected
If the building your business operates in is damaged by a natural disaster or any on for seen circumstances it will have to be repaired. You may not be able to operate your business while repairs are being made. Business income insurance can help replace the income you’ve lost because your company is closed. This helps you pay ongoing bills, like rent, payroll, or loan payments.
For the damage to the building, commercial property insurance, which is also known as business property insurance, can help cover the loss. This coverage can also help you fix or replace your business property if it was damaged by the unexpected occurrence.
Business Insurance Protects Your Most Valuable Asset: Employees
If your employees get injured or sick because of their job, workers’ compensation insurance can help them. Workers’ compensation insurance can help cover your employee’s medical care if they suffer a work-related injury or illness. It can also help replace some of their lost wages, as well as provide a deceased worker’s family with a financial benefit.