• Benefits of Liability Insurance For Your Business

    October 15, 2018
  • As a small business owner, insurance is probably one of the last things on your priority list. And I get it, it is not an income producing activity. However, this is a big mistake and can end up costing you your business in the worst case scenario or eating up your profits in the best case scenario. There are many benefits to having small business insurance and you will find that the costs offset themselves quite quickly.

    1. Liability: Probably the most important benefit in taking out small business insurance is that you are covered for liability. Businesses are easy targets for on-site accidents. If someone is injured at your place of business and you don’t have any form of liability insurance you will probably end up paying for the rest of your life to cover medical expenses and any other damages the courts decide to grant the person who was injured.

    You may be under the impression that since you run a small business that accidents will probably not affect your business and you won’t be found at fault. However, even if someone just trips over a cord and twists an ankle in your office they can sue you for damages and medical expenses. It really doesn’t matter if it was their fault or not. The accident took place in your office so you are liable and since you are a business you will probably end up paying more than you could have imagined for a sprained ankle.

    Small business liability insurance will cover you in this type of scenario, whether the individual is a visitor, client or employee.

    2. Theft: Small business insurance will also cover you for the cost of equipment, inventory or products that have been stolen. So, if you have a warehouse and goods are stolen as a result of a break-in your insurance policy will cover the cost of replacing the stolen property. This holds true for office equipment and any other property that you have insured.

    The compensation you receive can save your business because having most of your inventory stolen can cause a serious dent in your sales and profitability if you don’t have any coverage. Small business insurance will cover the costs and you can quickly replace your stolen inventory.

    3. Natural disasters: By taking out insurance for your small business against natural disasters you will be protecting your assets and inventory in case they are destroyed by natural disasters, such as a flood or earthquake. If your place of business is destroyed by an earthquake, the costs of replacing everything can be astounding. A good insurance policy will cover the replacement costs so you can be up and running again in no time at all.

    However, if you didn’t have any small business insurance you will have to cover everything out of your own pocket. As most small business owners don’t have massive financial backing and usually don’t have such a large emergency reserve of funds it usually means that they end up filing for bankruptcy.

    Taking out small business insurance can mean the difference between having a successful business and losing it all in a split second. In addition to being a CPA, I am also a financial advisor and I can help you select the right insurance to protect your business. Schedule a consultation today to review your current coverage.