Every business owner should have the right commercial insurance package to protect their investments, employees, and customers. Otherwise, your business could be forced to shut its doors even when it’s thriving. To show you what we mean, here are 5 reasons why small business owners need commercial insurance.
Keeps Your Business Running
An unexpected fire, cyber threat or break-in could put your business operations on hold for an undetermined period of time. Without insurance to cover your downtime, you could run into serious financial problems. In the event that your business needs to shut down, having business interruption insurance will ensure that any loss of income or expenses are covered until your business is back up and running.
Protects You from Lawsuits
Workplace accidents are more common than most people think. Misplaced boxes, a slippery front entrance, a badly placed filing cabinet, can all lead to workplace injuries. To protect yourself from a lawsuit that could deeply impact your bottom line, it’s important that you have commercial based liability insurance.
Contracts May Require Insurance
Many contracts require businesses to have insurance. For instance, landlords often require renters to carry property and content insurance, banks, and financial institutions often ask for insurance certificates before loaning money, and many client contracts also require errors and omissions insurance in the event that you make a bad decision, and something goes wrong.
Broken Equipment Is Extremely Costly
A damaged boiler or server could put a sudden halt to your business operations if you don’t have the cash on hand to fix it. That’s why it’s important to have the proper insurance coverage to protect your equipment in the event of a loss. Commercial property insurance should cover your business equipment that is necessary for your day to day operations. But you may also require equipment breakdown insurance to covers repairs and replacement due to internal issues like an explosion or faulty piping.
Your Home-Based Business May Not Be Covered
Not all homeownership policies will cover the small business you run out of your home. It’s important to find out what exactly is covered under your current policy and get commercial insurance to cover the rest.
If you run a small business, you’re probably already aware that you need insurance to cover you in the event of fire, theft, and damages, but do you know exactly what type of coverage you need? Every business is different and will require different types of commercial insurance. If you’re not sure what type of insurance is needed to adequately protect your small business, contact us at Rowat Insurance. Our team will review your business operations and help you find the best policies for your small business type and structure.