One small mistake could ultimately lead to a negligence or malpractice claim, which could destroy an organization.
The right insurance policy can, however, provide your business with financial protection should the worst happen. If you’re unsure whether to invest in a policy, find out more about the importance of insuring your brand.
It only takes one liability claim or major lawsuit to force your business into closure. For example, an employee accident, malpractice claim from a client, or a disgruntled member of staff could win a suit, which could drain your company’s finances. Thankfully, business liability insurance could preserve your cashflow in the event of a claim.
What does a business liability insurance cover? If you turn to Hiscox, you could receive millions of dollars of coverage for an accidental injury and property damage, which can provide financial protection against the cost of legal fees and a compensation payout. It will also provide peace of mind that your business will be protected should a customer, employee or client make a claim against your organization.
Adhere to Your Legal Requirements
Different businesses will be legally required to invest in different insurance policies, such as workers’ compensation insurance, state disability insurance, and unemployment insurance, to name only a few. Of course, the state you operate from can determine the coverage you will need to invest in. If you fail to adhere to your legal requirements, you could receive:
- A large fine
- A civil or criminal penalty
- The exclusion from public contracts
- A cease and desist order
A lack of insurance could ultimately cost your business substantially more than a policy and could potentially lead to the closure of your business.
Customers and clients want to invest in products and services from dependable organizations. By securing the appropriate policies, you can improve your brand’s credibility, as they will perceive you as a safe bet should the work you provide go wrong down the road, because you’ll have a way to compensate them. It is, therefore, essential to promote to your prospective customers that you possess the appropriate licenses and insurance, which could build trust in your brand.
A Contract Requirement
In some circumstances, an insurance policy will be a prerequisite of a contract agreement. For example, some client contracts might require for your business to carry a specific insurance policy should something should go wrong during your work together. Also, if you borrow money to finance a property, operations, or equipment, a loan agreement might state you need to invest in insurance.
No entrepreneur knows what the future holds for their organization. Insurance serves as a safety net in the event of a financial disaster, as it could help a business to bounce back from a monetary hurdle with ease.
It is imperative to learn more about the different insurance options available and the benefits they can each bring to your business. By securing the best policies for your company, you can sleep peacefully in your bed each night knowing your venture is financially protected.