Do you actually need insurance if you have a small business?

Getting insurance is a necessity whether for a big or a small business. No matter how small your business, you will need an insurance. And here are the reasons why?

For your own protection. Like big business, you should protect your small business. There are a variety of insurance that is especially designed for small business including: property insurance, to protect your personal property such as tools and equipment which in critical for your service; professional liability insurance to defend yourself against claims or lawsuits arising from failure to or improperly rendering professional services; and renter’s insurance which protects against physical damage to rented property.

The law may require it. Getting insurance may be required by law. This is especially true for industries that are highly regulated by the government and professions that are highly dangerous. In the transportation sector for instance, getting a third party liability insurance is a requirement for registering your vehicle. In some instances, getting your license to operate will require you to get insurance. Some states would require you to get professional liability insurance to get a license as a construction contractor.

Your clients might want it. Customers may require their contractors to be insured for their own protection. General liability insurance can protect clients from injuries or damages made by contractor in client’s property. Meanwhile, a worker’s compensation also saves a client from the injury incurred by a contractor’s employee or service personnel while on job in conduct of their service in customer’s premises. The insurance help customers to be less wary if you get injured or if mishaps or accidents happen while you are rendering your services.

Better credibility for your business. However big or small your business is, your reputation and credibility is important for you to get clients. Having insurance renders your small business more credible. Insurance certifies that you are a safe bet. Customers are safeguarded that you have the capacity to compensate in case of mishaps and injuries.

Attract and retain good employees. Your service is only as good as the people who render it. Hence, attracting and retaining excellent employees is critical for your business. Aside from salaries, employees also look for other benefits like insurance to protect them from work injuries. Without insurance, your good employees might leave or you might not be able to get good employees. Providing protection to your employees is therefore a must which can be attained with insurance.

Cybercrime is prevalent. Breach of data and cyber-attacks are now becoming prevalent in small businesses. Information theft and credit card theft commonly targets small businesses because they usually have modest security measures to protect their data. Since the trend of going virtual occurs in practically all types of business, a cyber-insurance is quickly gaining momentum as a prerequisite for a successful online business.

Future is unpredictable. Insurance is essentially your protection against an unpredictable future. You will never know if injuries or accidents will happen, natural disasters will damage your property or thieves will steal your important equipment or tools. Stuff happens or the Dudu occurs. Hence it is always better to be insured than sorry.

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