Business owners, big and small, are often encouraged to invest in as much insurance as possible. However, the need for various types of insurance may be more essential for people who own small businesses. Small business owners often have a significant portion of their personal savings invested in their companies.
If an unforeseen tragedy were to occur, these people could lose their money, their assets, and their ability to survive day to day. Rather than take such a gamble, small business owners are encouraged to buy insurance for events such as these that could spell doom for their businesses and their viability. There are four insurance essentials that all small business owners should be aware of and look at purchasing.
1. Liability insurance
Business owners may take extra steps to keep customers safe when they visit these stores or offices. However, sometimes accidents occur that leave patrons hurt or sick. Because business owners have the legal obligation to keep their clients safe and sound while these individuals are on the owners’ premises, these business professionals may need to protect themselves during these events by utilizing their liability insurance coverage. Instead of the customers’ settlements being paid out of the companies’ profits, the owners’ insurance policies can pay for these expenses.
2. Disability insurance
A business owner may be in the greatest of health and take every precaution to keep himself safe from sickness and injuries. Even so, circumstances that are well beyond this person’s control could cause this individual to become hurt or sick, leaving him unable to tend to the company’s daily operations. During the time the business is shut down, the owner loses profits and the income on which he may greatly rely.
Jokes aside, theft can cost a small business owner. In fact, nearly 30% of business bankruptcies are the result of theft.
Even with this insurance, however, the owner may face denials from the insurance provider. Pairing this disability coverage with the retaining of a disability lawyer can help the owner protect his or her income while the case is being considered by the insurance company. An experienced disability denial lawyer can help ensure that the owner’s interests are protected and that the insurance company comes to the best decision for the small business owner.
3. Fire and Smoke
As cautious as a business owner may be, that individual still could be at risk of suffering a fire to his small business. Having smoke detectors, fire extinguishers, and sprinkler systems installed may not be enough to stop the company’s location from suffering total devastation in a fire. However, when the owner has insurance for fires and smoke damage, the owner can rebuild his or her business and receive the compensation that is needed to make sure the business survives this event.
4. Theft and Vandalism
When burglars and vandals destroy a business’s property, the owner may face significant monetary losses if this person lacks the proper insurance for this circumstance. Because it can be costly to replace property and inventory after a burglary or act of vandalism, the owner can protect his business by having this insurance coverage in place. The owner can avoid using his savings to rebuild the business.
Business owners can face financial devastation due to a variety of circumstances that happen beyond their control. Rather than lose their businesses and financial survival, they can protect themselves and their companies by having the proper insurance in place.
