8 Good Reasons To Get Your Business Insured
Operating a business carries several inherent risks. For instance, a staff member can get hurt on the job, a customer can file a lawsuit, a natural disaster may strike. For these reasons, it is vital for you to protect both your personal and business assets with public liability insurance.
Here are eight reasons why getting insurance coverage for your business makes sense:
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1. You may get sued
Although it is not mandatory in New Zealand to get public liability insurance, it is required in a few industries. Regardless of the type of business you own, insurance coverage protects you from expensive lawsuits. For instance, your employee may break their leg from slipping in your hallway. The employee may later file a lawsuit for your negligence. Insurance will not only pay for the damages but cover the legal fees as well. And let’s not forget we live in a litigious society!
2. Keeps your business operational
What would happen to your business if a natural disaster occurred, such as a flood or tsunami? Liability insurance would cover areas of property loss such as equipment, furniture, buildings, etc. Some companies opt to insure lost pay for employees as well. If you live in an area where the possibility of floods, earthquakes, forest fires, etc. is very high, then we recommend protecting yourself with suitable coverage.
3. Gives your business credibility
Did you know public liability coverage lends reliability to your business? It is a signal to customers and prospective clients that your business can be trusted. If something does go awry in your transactions with them, you will be able to compensate them. Trust is the modern-day currency of our economy.
4. Requirement for certain types of contracts
There are certain types of contracts where it just makes sense to carry insurance, such as:
– If money is borrowed to finance equipment, operations, or buildings, the loan documents will have an insurance prerequisite.
– If you plan to lease or rent a facility for business operations, personal liability insurance may be necessary because the landlord’s insurance won’t cover it.
– Certain client contacts may require that you have insurance coverage in case things do not happen as arranged.
5. Protects employees
What are your most prized assets? Surprisingly, it is not the equipment, services, or products you offer. Nor is it the years you’ve spent in building the brand. Your most treasured asset is your staff team. So it makes sense to shield them with liability insurance. Accidents and mishaps can occur at any time. With insurance protection for employees, you are protecting their interests against liability claims and lawsuits.
6. Attracts and retains employees
Seeking insurance protection is about more than being ready for “gloom and doom” situations. It has the benefits of enticing and keeping qualified staff. And as you are already aware, employees that are dedicated and in sync with your business’s mission and vision are hard to find.
In addition, job seekers are often looking for work that offers a salary and a benefits package. This includes long-term care, disability, health, and life insurance. If your company does not offer these incentives, you will lose this valuable employee to a business that does.
7. Protects human assets
If you are the sole owner of the business, you are probably the one who is keeping it operational. What would happen if you are in a serious accident, or you experience health problems or other unfortunate misfortunes? These situations can remove you from working for weeks and even months. Who will run your business in your absence? Business or company insurance will provide coverage for the income loss you experience.
8. The future is unpredictable
No one can predict the future with 100% certainty. It would be a blessing if on the job injuries, natural calamities, lawsuits, and accidents did not occur, but there is no guarantee that it won’t. Due to the sheer unpredictability of the future, it is absolutely vital to get personal liability insurance.
In fact, it is recommended that you seek insurance the minute your business is up and running. Do not wait or delay this step. An accident can occur on the first day or on the 200th day. Without insurance protection, you might be faced with a hefty employee lawsuit.
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Liability insurance helps businesses build trust, hire and retain top-notch employees, and even protect them. More importantly, insurance coverage gives owners peace of mind in the event of a natural disaster or lawsuit. With insurance protection, business owners can focus their efforts on growing their business. With suitable coverage policies, you will be able to run a profitable, productive, and personally fulfilling business for many years.