If you own a business, you may not want the added expense of business insurance. However, not having proper coverage can be more costly in the long run. Here are a few reasons to purchase and maintain business insurance:
A lawsuit can be expensive even if the plaintiff doesn't win. Your business can be sued by a disgruntled employee, a fellow business owner that believes you breached a contract or even a customer who accidentally falls and becomes injured on your property. In any case, the cost of an effective legal defense team can be pricey, and if you do lose a case, the compensation awarded to the plaintiff can be more than you can afford out-of-pocket. For instance, in a personal injury case, you may not be prepared to cover the medical costs, pain and suffering, property damages and lost wages of the injured party.
Even if you are careful, there is no way to prevent your business from ever being sued, but a lengthy case could be so expensive that it leads your business into bankruptcy. Nevertheless, business insurance can help cover your business in case a legal battle occurs. You won't have to bear the burden of hefty legal payments on your own.
Protection of Personal Assets
Sometimes, the personal assets of a business owner are tied to his or her business. Even if the owner doesn't realize it, a legal issue could result in the business owner's loss of personal property, not just business assets. Business insurance can cover awarded settlements or other expenses so that the personal finances of the business owner remain unscathed.
Coverage When Others are at Fault
If another party is at fault in an accident that damages or destroys business property, that party should be held liable, right? Whoever is responsible for an accident should be responsible for the damages related to the incident. However, not everyone maintains appropriate insurance coverage, and the responsible party's lack of preparation could impact your business.
For instance, if a motorist lost control of his or her car and crashed into the front of your place of business, you may incur a large amount of damage to your building and equipment. In addition, you may lose a substantial amount of revenue due the downtime needed for repairs. Still, if the motorist is uninsured, it is unlikely that he or she will have the money needed to pay for the damages. Business insurance can offer coverage to keep your business moving even when uninsured parties cause damages.
If you don't have business insurance for your business or if you have questions about coverage, contact a business insurance agent in your area.Share