3 Reasons why you need insurance to protect your business

/ BLOG

3 Reasons why you need insurance to protect your business

Happy business owner hanging an open sign at a cafe

Why your business needs insurance

Every business should consider insurance, for a number of reasons. One is that your business could face a lawsuit if it has been responsible, even if only allegedly, for an incident that causes harm to someone, illness, damage to property or financial loss. Even if you are incredibly careful and do everything by the book, you could still find yourself facing a lawsuit, for example numerous businesses used asbestos on their premises or in their products when it was thought to be benign; many of these businesses would have been bankrupted when facing the payments required to meet class-action lawsuits if they weren’t properly insured.

Liability insurance for small businesses can give you the reassurance that your company will be covered against future mishaps. However well run a business is, something can always go wrong, and a variety of business insurance exists to cover the potential risks. Every company’s needs are different, for example a company operating over several premises won’t have the same sort of policy as a company that only does business online.

What sort of insurance you need

There are numerous different forms of insurance. Many small businesses choose a business owner’s policy (BOP). A BOP can offer coverage against liabilities, business interruption, and insures the property and premises of the business. This is an excellent choice for small businesses running out of “real world” locations, but there are many other forms of insurance available. You may also need additional insurance. You should understand what your risks are and what coverage is available to protect against those risks.

Is business insurance compulsory?

Whether business insurance is a legal requirement is dependent on the state in which you operate and the type of business you run. As an example, if companies have more than a specified number of staff, it will be mandatory to take out workers compensation insurance, meaning that if an employee suffers a work-related injury or illness, they will be protected. Every small business owner should check carefully on the regulations that pertain in their state, but even if insurance isn’t mandatory, it’s still an extremely good idea, for the reasons set out below.

Firstly, defending legal actions, even if they are vexatious, is extremely costly. You could be completely in the right but still, be faced with significant financial losses if you are not insured.

Secondly, insurance covers what is known as “acts of God”, things that happen to your business that was completely out of your control and that involve no wrongdoing on your part but could still cost you huge sums. For example, imagine a lightning strike hit a chimney on your premises, causing it to fall and injure a passerby. Under the “act of God” clauses in your insurance policy they would be compensated by your insurance; if you don’t have insurance, the costs come out of your pocket.

Thirdly, some insurance policies not only cover the financial losses you may suffer if found liable for an accident or illness, but they can also cover your costs if you suffer a loss of income through no fault of your own. An example would be if there was a flash flooding in your neighbourhood and you had to close your premises for a month for repairs; with the right type of insurance, you would be compensated for the income lost over this period.

Finally, insurance helps you to remain compliant. In many instances, it is a legal requirement to have an insurance policy in place that protects your employees. Even if nothing goes wrong, you could still end up with substantial financial losses from fines imposed for non-compliance.

What is covered by small business insurance?

As above, policies vary. Some policies will only cover the products you make and sell to the public (product-liability insurance), while others cover a wider field. As mentioned above, a BOP policy covers many different aspects of your business, including your property like machinery and premises. These are a type of “blanket” policy for US companies, insuring them against a number of potential hazards.

You need to consider the form of business you’re running and what the legal requirements are in your jurisdiction. Whether or not it is legal not to have insurance, it is frankly unreasonable not to have protection in place for your company and your employees, as nobody can guarantee that they will not experience difficulties at any point in their business life.

Liability examples for business insurance

Personal injury and claims for medical costs

Imagine you are unloading supplies from your car to take into your office. You put a box down for a moment to lock your car and a passing jogger who hasn’t seen the box trips over it and fractures their collarbone. In this instance, you could face a lawsuit for medical costs. Without general liability insurance, you will have to pay legal fees to defend yourself and, if you lose, any compensation awarded from your own pocket. With insurance, these expenses would be met (although bear in mind that all insurance policies have limits, so make sure you have sufficient coverage to meet all likely eventualities).

Claims for property damage

Imagine you are a restaurant owner and one of your serving staff trips up and spills a glass of red wine all over a customer’s designer white silk frock. The garment is ruined, and the customer demands $2000 to purchase a new one. This is a legitimate accident that occurred on your premises, and general liability insurance would help with the payment.

Invasion of privacy

Imagine you are in the building business and you have just completed a luxury addition to a customer’s house. Being pleased with your work, you take some photographs of the home and capture the client in the background cooking dinner, and put them on social media to show potential clients what you can do.

Unfortunately, the client sees your pictures and objects to you having used them without permission, suing you for breach of privacy. General liability insurance would help you defend the case and to pay any settlement if it is found against you.

Copyright infringement

Imagine you run a travel agency and, to advertise a special offer of holidays in Cancun, you put a collection of photographs of the destination on your website. Unfortunately, you forgot to check whether the photographs were in copyright, and the photographer has found your website and is suing you for breach of copyright. Your business insurance would help with your defense and any damages awarded.

Conclusion

Hopefully, you can see from above that the question that should be asked is not why businesses need insurance, but why would any business risk being without insurance. Sure, insurance can sometimes look like an unnecessary expense as years go by without you ever having to make a claim but carrying on paying premiums, but for even the best run business disaster could be just around the corner. To look after your employees and your customers, business insurance is a must. To find out more about the types of business insurance available, visit this website.

 

 

 

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

Compare quotes in minutes with no obligation to buy

More than 6,000 customers covered by top-rated insurers.

Get instant quotes

Compare quotes in minutes with no obligation to buy

Get Quotes
MOVING FORWARD, I WILL BE SENDING ALL OF MY BUSINESS TO THIS COMPANY !!!! Incredible customer service!!! Thanks
THEODORE WELLS
THEODORE WELLS
19:49 09 Sep 21
Daniel Patrick Sullivan
Daniel Patrick Sullivan
16:49 07 Sep 21
Their representative clearly explained different kinds of policies to help me select the one appropriate for my needs and then helped me enroll by phone painlessly. By the end of the call, I had a policy in place.
Dissent Doe
Dissent Doe
22:21 02 Sep 21
Sheree Williams
Sheree Williams
19:39 27 Jul 21
Eugene was Awesome!!!!
Lakesha G
Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
Lane
Lane
18:22 22 Jun 21
Jugrid Ombisi
Jugrid Ombisi
16:26 15 Jun 21
Done in less than an hour!
William Opperman
William Opperman
00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
Brenda Jones
Brenda Jones
20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
Arik Solberg
Arik Solberg
16:34 10 May 21
Adj Ako
Adj Ako
16:47 05 May 21
Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba Perez
Elba Perez
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper Martinez
Casper Martinez
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic Films
Poetic Films
21:00 07 Apr 21
Sandra Darjean-Murphy
Sandra Darjean-Murphy
17:48 31 Mar 21
Jusephine Ghong
Jusephine Ghong
17:58 23 Mar 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin Behm
Franklin Behm
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V Lapierre
Cassiopée V Lapierre
23:13 09 Mar 21
S & S Professional care llc Home Health Agengy
S & S Professional care llc Home Health Agengy
04:15 24 Feb 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie Woodruff
Stephanie Woodruff
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined Perez
Esined Perez
23:32 17 Feb 21
DIVINE FIJIANS HOME CARE SERVICES
DIVINE FIJIANS HOME CARE SERVICES
22:49 05 Jan 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe Wajdula
Joe Wajdula
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa Word
Lisa Word
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda hale
rhonda hale
23:26 12 Nov 20
Owner (LPN)
Owner (LPN)
23:19 06 Nov 20
Cincere Browdy
Cincere Browdy
15:16 29 Oct 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran Sutton
Fran Sutton
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen Day
Aileen Day
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele Harris
Michele Harris
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina Rose
Christina Rose
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy Sloan
Nancy Sloan
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope jones
hope jones
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela Curry
Pamela Curry
16:45 24 Aug 20
Cameron Peek
Cameron Peek
19:25 24 Jul 20
Great and fast service!!!! The representative was very professional!!!!
Tanya Sweet
Tanya Sweet
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy Smith
Jimmy Smith
19:01 14 Jul 20
Great service, but they're also extremely patient. I called over a month ago for specialized E & O coverage, and Bizinsure was able to put me in touch with an extremely reasonable quote. Absolutely invaluable time and monetary savings to be had by going through these folks. If you can-- ask for Anthony. Absolute gem of a human.
James Lang
James Lang
18:19 02 Jul 20
Ken M
Ken M
23:21 28 Jun 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda Gray
Rhonda Gray
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul Rising
Paul Rising
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene Smith
Kristene Smith
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre Hall
Fre Hall
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn Torres-Gale
Dawn Torres-Gale
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. Atallah
Dr. Youssef C. Atallah
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh Mariscal
Josh Mariscal
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Young
Allison Young
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark Wallace
Mark Wallace
23:42 13 Nov 17
Daniel Scott
Daniel Scott
15:15 27 Jun 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham Blair
Graham Blair
22:12 23 Jun 17

Popular Searches