4 Need-to-Know Reasons Why Your Business Should Be Insured
There are over 30.2 million small businesses in the United States alone. While this is a fantastic statistic, what isn’t fantastic is that many businesses, both small and big, don’t have insurance. In fact, in most cases, business insurance is completely optional, although often recommended.
There are two main reasons why business owners may avoid getting insurance. Firstly, many business owners don’t think they will end up with a claim. Secondly, the cost of opting for insurance, even when affordable, scares entrepreneurs away. In reality, anything can happen, and having business insurance is often the best decision a business owner can make.
If you have yet to insure your business, make sure to read on to discover four important reasons why business insurance might be a great idea to obtain.
1. You won’t have to worry about paying as much out of pocket to cover claims.
There will always be risks when running a business. Accidental bodily injury, property damage, and violation of copyright laws via advertisements are things a business might be sued for. Depending on the claim or lawsuit, you could be forced to pay up a large sum of money.
However, if you’re backed up by insurance, you can rely on your insurance company to provide or reimburse the full or at least part of the amount you need to cover any claims you might receive while in business. That way, you won’t have to inconveniently wipe your pockets during these unexpected moments.
2. It will help give you greater peace of mind after a natural disaster.
Natural disasters are often unexpected. Even when they’re expected, the aftermath can be tragic and expensive, even for your business. Fortunately, many standard business insurance policies cover a variety of natural disasters, from heavy wind to hurricanes, in case your business is struck.
3. Having insurance can ultimately save your business.
Think about it: you’re left with a claim or property damage; where’s the money going to come from? Straight from your bank account? As a business owner, not everyone is lucky to have extra funds to whip out of pocket to pay for claims or damages. That’s when insurance comes in handy and can, in the end, save your financial situation and your business.
4. Business insurance can be deducted off of your taxes.
Although it shouldn’t be the main reason why you opt for business insurance, the fact that business insurance is tax-deductible is another benefit of getting your business insured. While you’ll be paying to have insurance throughout the year, it’s always nice to potentially get into a lower tax bracket when you deduct your premiums when tax time rolls around.
Do you still need to insure your business? For many businesses, the month-to-month costs are worth it. Get help here.
Conclusion
All business owners want to keep their expenditures as low as possible. However, sometimes you have to spend money to make money, and in the case of insurance, you have to spend money to keep your business safe. Although many business owners have yet to get insurance, the previous four reasons explain how critical and beneficial it can be for many businesses.
