There are many unexpected things that can happen without warning in business. Even if the events seem unlikely, there are risks if you don’t have business insurance.
Violating Local Laws
When you operate a business without business insurance, you could be violating local laws. Many cities have specific laws about insuring your business. You may be required to have workers compensation insurance, but this may not be the only policy that you need. You may need property business insurance if you work in an area with natural disasters.
Not Protecting Your Employees
Workers compensation is important for protecting your employees, as well as your business. If an employee becomes ill or suffers an injury then it can mean thousands of dollars in medical costs and loss of income.
If you fail to insure your business and there is an unexpected event, expect to pay a lot of money for this that could even put you out of business. A lawsuit or a natural disaster could spell deep financial trouble.
Loss of Daily Business Activities
If you have business interruption insurance if something happens to the building or contents, you won’t lose income every day you can’t operate. This way, you won’t have to pay for repairs yourself or lose business.
You can be at risk for losing your business property and your assets without adequate business insurance. If there is a natural disaster, fire, flood, theft, or a number of unexpected events, you will be left to pay for repairs and associated costs out of pocket.
When choosing business insurance for your company, consider risks you are exposed to and how common those events may be. Even though hurricanes may not be in your area, this doesn’t mean that you don’t need protection from natural disasters and other events.