The law requires most businesses to have insurance coverage. The type of insurance you’re required to have often depended on what kind of business you’re running. However, many companies may go with just the bare minimum coverage necessary to comply with the law.
While there’s nothing inherently wrong with having the bare minimum coverage required by law, sometimes it can be a good idea to get more coverage for your business. It can be beneficial to assess your risks and cover as many bases as possible, as long as you’re mindful of premium costs. But, of course, you can always speak with an insurance agent or company to see what might work best for you.
No matter what type of business you run, it’s always a good idea to have insurance coverage — here are seven reasons you shouldn’t skip it!
1 It Covers Your Main Risks
Having your main risks covered by insurance can make all the difference and keep you going when an unexpected incident occurs. For example, car hauler insurance can protect your rig from damage if you haul cars for a living. A car hauler can be quite an expensive investment, and getting yours insured means you won’t have to pay out of pocket for repairs or replacements (aside from your copay, of course).
Another example is workers’ comp insurance. If you have a business where your workers are at risk of an injury on the job, workers’ comp insurance minimizes your liability. It also ensures that your employees are taken care of if they get injured or sick on the job.
2 Protects Your Property from Fire
Fire protection is something that may slip many people’s minds. Although much work is done to prevent fires, such as keeping up with fire codes, they can still happen unexpectedly. The worst part is, fires can be especially devastating, no matter the size of your business.
When you’re leasing your business space, the landlord’s insurance usually covers fire protection for the building itself. However, it doesn’t protect your property and equipment. If you have expensive equipment or valuable items, it may be prudent to add a fire protection clause to your policy.
3 Protects Your Property from Water Damage
Like fire damage, water damage is often unexpected — but it can happen more often than you think. For example, someone may leave a tap running and cause a massive problem for you. Pipes can burst out of nowhere. Even worse, sewers can back up and ruin your day — and extreme weather can also create a big problem to boot.
It might be a good idea to get the necessary coverage if you get water damage.
4 Data Security Can Be a Problem
A privacy breach can create a massive problem if you handle sensitive information. For example, adding privacy breach coverage to your policy protects against legal liabilities and covers expenses if sensitive information like customer data gets stolen, lost, or shared by accident.
5 Mitigates Damage from Extreme Weather
With the right insurance coverage, you can protect your business from extreme weather like rain, wind, hail, earthquakes, and floods. Check with your insurance company about additional coverages that can keep your business afloat when a major catastrophe happens.
6 Equipment Protection
When you start a business, there’s no doubt that you probably spend a lot of money investing in equipment. It only makes sense to protect that equipment and have insurance to back you up if you need repairs or replacements — especially if that equipment is vital to your daily operations.
7 Business Interruptions
Sometimes, your day-to-day operations can get interrupted or affected when something unexpected happens. When you have the right coverage, insurance can help you keep your business going by covering lost income or helping you pay for renting temporary replacement equipment if you need to send yours in for repairs.
Insurance may seem like another extra expense you have to pay, but the truth is it’s for your protection. Aside from the fact that it’s legally required, these seven reasons are just some of the many reasons you shouldn’t skip getting your business insured. First, you don’t have to cover everything — just the significant risks you’re likely to come across.