Starting a business is a very enjoyable thing. It does require work and does require sacrifice, but watching as a business grows and becomes profitable brings a lot of satisfaction. One of the realities associated with owning a business is that in modern society a lawsuit could be around the corner. Businesses have to accept that every customer they interact with, every employee they hire, or every client they connect with could be a potential lawsuit.

It doesn’t matter how small the business is and it doesn’t matter what services the business offers, the business is exposed to potential lawsuits. Business insurance is a positive way to protect a company’s assets as well as its owners. There are a lot of reasons why purchasing business insurance is a good idea.

The first reason is that it really just takes one incident to leave a business in financial dire straits. It just takes one broken contract, one frustrated employee, or one unsatisfied customer. And even if a business wins the lawsuit, the cost of defending themselves could be so expensive that it leads to the business needing to close.

The second reason is that time and unforeseen occurrences befall every business. Accidents happen. An employee might fall or a customer might have something fall on them and they are within their legal right to seek compensation. Business insurance, like what is sold by Captive Insurance for example, helps to protect against these unforeseen occurrences.

A third reason is that the protection you get from forming a corporation may not be as airtight as you may think. A lot of small business owners mistakenly believe that if they form a corporation, a corporate shield will protect them. However, there are a lot of circumstances where if a business does not have business insurance, the business owner could still lose everything that they own.

The fourth reason is that you cannot rely on other people’s insurance. Imagine for a moment that you have a nice restaurant that’s on a busy street. An individual driving down that street jumps the curb and careens into your storefront. They may have automobile insurance, but their coverage may not be sufficient to cover the damages you sustained. Your insurance would kick in to make sure that you were completely protected.

Purchasing business insurance is a positive proactive step that all smart business owners make. They don’t wait until an accident happens and then try to figure something out. They prepare for success.

This entry was posted on Friday, October 14th, 2016 at 2:29 pm and is filed under Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.