Do I Need Business Insurance?
There is little doubt that choosing the right business insurance can be confusing and maybe even overwhelming. Your main focus areas as an owner are operating your business, engaging with customers, and managing inventory. Sorting through the different types of business insurance plans that are available might not be a priority.
But as we will point out, having business insurance will bring many tangible benefits to your company. You will absolutely be glad you had insurance coverage when you experience loss, a claim, or an accident.
In fact, business insurance could even save your business from ruin if a calamity strikes and your commercial enterprise is completely vulnerable – not being insured. And if you don’t carry the appropriate insurance, a flood, a fire, or a personal injury lawsuit could cause substantial loss to your company.
Who Should Have Business Insurance?
Any company that has property that includes electronic and high-value equipment, product inventory, etc., that would be difficult to replace, whether it is an accessibility or cost issue, should have business insurance. If you have an extensive amount of inventory, then you will also want to have insurance.
You should carry insurance if there is a good chance you might have to contend with a personal injury lawsuit. A customer might suffer an injury on your premises or you could experience a theft of merchandise. What if one of your products is defective and causes harm to someone? Consider the consequences of a data breach to your business, placing your customers at risk if a security breach occurs.
7 Reasons Why You Should Consider Having Business Insurance
Insurance Will Protect Your Business from Lawsuits
You might have good relationships with your clients. You also could assume they would never take legal action against your business. But there are many reasons for lawsuits being filed. And the way things stand in today’s world, litigation is frequently used tactically to protect or identify liability.
If the work you perform for your clients is included in a larger contract, it is possible that your client may be obligated to sue your company to eliminate their liability. What it comes down to is that your client might have no other legal options other than to resort to bringing a lawsuit against your business.
If you do not possess the right insurance, you could be faced with paying substantial legal fees in order to defend your company.
Insurance Will Protect Your Business Employees
States like Washington require businesses to carry workers’ compensation insurance. This type of business insurance could prove highly valuable if any of your employees suffer work-related injuries or illnesses.
Workers’ compensation offers the following benefits:
- Missed wages
- Medical care
- Funeral benefits
It is worth noting that workers’ compensation provides protection that is different than unemployment insurance programs.As a business owner, you have available to you other types of insurance that could protect the livelihood of your employees, such as liability insurance.
Liability insurance can provide financial protection by making payment on a judgment, which lifts the financial burden from your company.
Insurance to Protect Your Customers
If you already possess a Business Owner’s Policy (BOP), your business insurance could also cover your customers. Included in the BOP policy is both business property and business liability coverage, which are packaged together. This protects your business from the following:
• Bodily injury
• Product liability
• Property damage
• Personal and advertising injury
For example, if a customer at your store slips and fractures their arm, and is taken to the hospital for medical treatment, the BOP you are insured with will assist in covering the medical expenses.
If you are unfortunate enough to experience a security breach, data breach insurance will protect your business. This type of insurance will also pay for the following:
- Legal fees
- Identity protection solutions
- Public relations
Protect Your Human Assets
If you are a business owner, it is your responsibility to operate and run your business. But if you were to succumb to an illness or have an accident that caused you to be incapacitated, what happens to your business then?
If you have company-owned life and disability insurance coverage, this will provide adequate funds to cover the loss of income. If you die or are disabled, this type of insurance makes available the necessary monies for the purchase of your interest under a buy-sell agreement.
You have the option of purchasing these policies, also known as “key man” or “key person” insurance, to cover the disability or death of a, particularly valuable employee.
Contracts May Require Your Business Carry Insurance
There are various aspects to be aware of when it comes to contracts and insurance. Here are
some scenarios that illustrate the need to carry insurance when your business deals in contracts:
- If your business borrows money to pay for buildings, equipment, or operations, the loan agreement will probably include an insurance requirement.
- If you lease or rent your business building, you might need to have insurance because the landlord’s policy likely does not cover it.
- If you put in language about freelancers who require insurance and don’t realize it until they secure a job and lose their job as a result of not having insurance.
- Contracts for clients could stipulate that you possess insurance in case things go awry.
Insurance Will Cover Natural Disasters
Also referred to as “Acts of God,” this includes disasters that happen outside the influence of humans. In the Tri-Cities, these incidents would include flooding, fires, severe storms, etc. There are two types of insurance that would apply in these situations. They are all-risk and peril-specific insurance.
Peril-specific policies cover particular risks, as well as floods, fire, and other specified acts of God. An all-risk insurance policy covers insured businesses from all perils, except the ones specifically excluded from the list.
Carrying Insurance Adds Credibility to Your Business
You may not have considered this advantage, but you can gain credibility in the business world if your company is insured. When you have commercial insurance, it conveys to potential clients and customers that you are safe to deal with.
What’s more, if there are any mishaps or unintentional accidents that occur, you have the ability to compensate the injured parties. In essence, having solid insurance builds trust with the people and entities you work with. And trust means everything if you want to grow your business.
Graybeal Group, Inc. Can Offer You a Better Business Insurance Package
Choosing the right business or commercial insurance plan for your company can be very confusing. So we have developed many different options and programs to meet the needs of our commercial insurance clients in Oregon, Washington, and throughout the Pacific Northwest
At Graybeal Group, Inc., we can design a specialized package according to your property, liability, and casualty needs.
We are also proactive in identifying any factors that may increase your premiums or change your risk, and provide consulting and risk management options to protect your business. Whether you are a retailer, wholesaler, contractor, or electrician, we can tailor a package to meet your specific needs and requirements. So give Graybeal Group, Inc. a call today or fill out one of our free online quote forms.
Graybeal Group, Inc. Offers A Wide Range of Products and Pricing
Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff. With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland, and Forage, and Farm & Ranch.
Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.
For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.