Every business is different, and insurance needs will also vary depending on the company. However, there are some practical guidelines to stick to when it comes to general business insurance needs. According to The Small Business Administration, companies of various legal structures should be covered by liability insurance at the very least. But what does the term ‘business insurance’ or ‘commercial insurance’ mean? While various types of insurance coverage could be referred to as business or commercial insurance, it is defined by the SBA as any insurance that protects your investment by minimizing the financial risks associated with unexpected events. Here are some of the main reasons why commercial insurance is important.
Protect Yourself from Lawsuits
You might have great clients and customers, but this doesn’t mean that you are never going to get sued. No matter how good the relationship is with your client base, you shouldn’t assume that you don’t need to get business insurance. In some cases, your client may have no legal option but to bring a lawsuit against you to eliminate their liability in a situation. Since this is something that you can’t avoid, you need insurance to make sure that you aren’t paying the expensive fees to defend yourself out of your own pocket. Protect yourself by getting a commercial insurance quote from The Hartford. You can easily get a commercial insurance quote to learn how much you can expect to pay for different types of business insurance, such as liability insurance for your company.
You’re Hiring Employees
As your business grows, continuing to run it on your own might no longer be possible. Once you hire employees, you take on more responsibility as a business owner, and you will need to consider getting different types of insurance. When you are an employer, you will legally be required to get some kinds of business insurance, including workers’ compensation insurance in most states. You may also consider other types of insurance designed to protect your employees, such as employee liability insurance.
You Depend Heavily on One Person
Suppose your business depends very heavily on the knowledge or experience of one person. In that case, you might want to consider key person insurance. This type of insurance will ensure that you can get the insurance you need if this important person in your business is out of action, either due to illness, injury, or death. In addition, with key person insurance, you can ensure that you get assistance if a key employee, such as the business owner, cannot work for any reason.
You Want Peace of Mind
Even if you are lucky enough to live in a part of the country where there are unlikely to be any disasters, the last thing that you want is not to be insured if the worst does happen. Since nobody can predict the future, a good business insurance policy is important for making sure that you have peace of mind that your business is protected no matter what.
No matter what kind of business you run or are considering starting, getting business insurance should be the main priority.