Why does your small business need insurance coverage? Is insurance something you must consider important and take seriously when running a business in The United States, The UK, Australia, Dubai, Switzerland, and Germany?

Given all the uncertainties involved in running a business, the laws in developed countries require that businesses should operate with sufficient insurance coverage to help protect the business and its customers.

The importance of having insurance in your small businesses

Below are the top and most important reasons why you need business insurance

Getting Insurance Coverage for your Small Business helps you to have peace of mind in your business.

Running a business takes a lot of time and energy.   Having the right insurance policy to protect your business and knowing that you are fully covered against any unforeseen risk brings a lot of peace of mind which you need to solely focus on making the business work.

Based on the country, the coverage type, allowable deductibles, your insurance coverage will guarantee that you will be reinstated to your initial fiduciary state should the unexpected happen.

Business Insurance Can Protect Your Customers and Employees

Having adequate insurance for your employees is important to give them a sense of duty and responsibility knowing that they are protected from all work-related hazards.

This level of care will also trickle down to the customers as a happy employee is a happy customer.

An employee who knows that he could get medical care, missed wages and funeral benefits will more likely give his best than someone without such benefits.

With the exception of Texas, Workers’ compensation is compulsory in most States in the US. This means that you must carry adequate insurance if your business is located in New York, Louisiana, Illinois, Washington, Colorado, California, Nevada, etc.

Small business insurance helps to protect your business from aggrieved customers and employees.

Customers and employees can easily become aggrieved with a business and decide to sue. When such happens, a business that is carrying the right policy will be protected from what could have ordinarily been the end of the business.

Liability claims and legal fees resulting from being sued by your employees or customers can be taken care of by your business insurance policy.

And If your product causes any form of damage to your customer, a product liability insurance policy will take care of that.

The fact that you can be protected from making any settlement from the coffers of the business to settle angered customers or employees is one of those reassuring benefits of carrying the right insurances policy.

Carrying adequate Insurance in your business shows that you are serious which in turn boosts your credibility in the marketplace.

This is another incredible importance of having the right insurance policy for your small business. Your customers and suppliers will trust your brand offer and services as they know that you have the coverage to compensate them should things not go as planned or expected.

For example, electricians, plumbers, movers, and other small businesses with insurance cover have higher hiring rates than those who don’t.

Also, when negotiating a contract, having adequate business insurance can give you an edge. It will boost your client’s confidence in your ability to deliver or pay for liability claims if anything goes wrong.

Insurance can help protect your business against common “Act of God”

What is an act of God in the insurance industry?

This is a natural disaster that is not in any way facilitated by human mistakes or errors. When such an occurrence has a far-reaching impact, it is regarded as an extreme act of God, but when the impact is minimal, it is referred to as the Common Act of God.  

The reason why the extreme act of God is not covered by insurance is because of the cost of indemnity which is usually huge.

The common acts of God are disasters like hurricanes, tornadoes, and lightning storms. The extreme acts of God are disasters like floods, earthquakes, landslides, etc.

Does insurance cover acts of God in the United States?

Property and casualty policies can protect you when common acts of God occur.

Most homeowner’s insurance companies in the U.S. only cover the common acts of God.

Having an insurance cover is compulsory for certain types of transactions.

No matter the size of your business, sooner or later, you will enter into certain tractions that require insurance protection.

Such Transactions include things such as Renting a building from your landlord, borrowing money to finance goods, Loan agreements, and the likes.

With this in mind, it then makes business sense to take your insurance needs seriously in your small business from the get-go.

Helps to keep the business running no matter what Happens

As the owner, you’re tasked with keeping the business running. But what happens if you stop “running” because of a heart attack, serious accident, or some other unfortunate circumstance that takes you out of the picture for weeks, months, or even years?

Having the right insurance cover such as life and disability insurance can help provide payments to cover the loss of income your absence or that of a key member of your team generates.

In the event of your death or disability, it provides funds for the purchase of your interest under a buy-sell agreement.