Insurance is one of the basic building blocks of a successful business. And deciding if your company needs a basic business policy, a comprehensive business policy, or commercial auto insurance is up to you and your risks.
No one knows the investment risk of time and assets required better than you as a business owner. Ideally, your commitment to building your business will result in steady growth free from catastrophe.
And for many business owners, that’s how the story goes. But life is uncertain, and insurance is created for those uncertainties. And that’s why you need business insurance. It’s for the what ifs. Hopefully, all will go smoothly, and you’ll never need to file a claim, but you need to prepare for the possibility that it won’t.
Businesses Face Expensive Risks
If a fire destroys your business property, you might not be able to fund a rebuild on your own.
A customer could slip on your freshly cleaned floor and break their arm in the fall. You may be responsible for paying for their injury costs, and if that involves surgery, you might not be able to pay for those costs.
In another scenario, you could be sued because a competing business claims you stole information from them. Legal fees can be astronomically high, and many businesses, especially small businesses, can’t afford to defend themselves against lawsuits.
The list of possibilities could go on, but the point is those bad things happen, and it’s not always possible to make things right when the expenses are high.
Basic Business Insurance to Cover Risks
A basic business insurance policy will cover all three scenarios above. It will include commercial property insurance covering the costs of rebuilding your building and replacing your belongings following a disaster.
Business insurance will also cover general liability, so if someone hurts themselves on your property or in a way associated with your business, your insurance provider will pay for their medical bills instead of your business bearing the financial liability.
And a business insurance policy will cover legal fees associated with defending your company and protecting your assets from a lawsuit.
Appropriate Business Insurance Provides Peace of Mind
Even when business is good, your company could face disaster at any moment. This risk and uncertainty can bring anxiety. But, a business insurance policy that’s built around your needs can give you the peace of mind that even if something terrible happens, you have the tools necessary to recover.
Many states require businesses to purchase a commercial insurance policy. But even if you don’t have to carry insurance for your business, you owe it to yourself to protect your investment with the right policy.
A basic policy may be all you need. As your business grows, though, you’ll need to explore additional types of coverage to protect employees, cyber threats, employee health, and other risks associated with your company.
Melanie Musson, a published insurance expert, is the fourth generation in her family to work in the insurance industry. Over the past two decades, she has gained in-depth knowledge of state-specific insurance laws and how insurance fits into every person’s life, from budgets to coverage levels. She specializes in autonomous technology, real estate, home security, consumer analyses, investing, digital security, and business finance.