Whether you’re just starting out with your first company idea or have been in business for years, having adequate insurance cover is vital if you’re to have full peace of mind knowing you’re covered for any eventuality.
Unfortunately, errors in work, letting down clients or providing faulty/defective goods or services are just some of the many risks you may face running a firm, and without the right cover, you could find yourself on the wrong end of a legal case that could cost you heavily – to the point it might even result in the closure of your firm altogether.
Fundamental reasons your firm needs cover
If you’re sitting on the fence about whether to invest in business insurance, perhaps try asking yourself one question: if you insure your home, your family, your car, your possessions, etc already, why on earth wouldn’t you do the same for your business?
Below are just a few convincing reasons why you should put taking out business insurance top of your to-do list:
Your legal obligation: In most states and countries, having adequate business insurance cover isn’t just an optional extra-it’s a legal requirement. Problems like accidents at work, clients hurting themselves at your premises, or losing critical client information could see you facing expensive legal action-and those fees, charges and fines will come out of your pocket (or your firm’s finances) if you don’t have insurance. Moreover, you may well face further legal consequences for not having cover in the first place.
Protection for your employees: Most business owners would agree their firm’s greatest asset is its staff, so taking out cover to protect them as they work should be a no-brainer. If something should happen to your employees, business insurance cover like that provided by KBD Insurance will ensure your workers get proper medical care and can even cover funeral expenses, lost income, etc.
Protection for your clients: As well as employees, a firm’s clients sit at the top of the tree in terms of its assets, so you must take out adequate cover to protect them. While it might seem unlikely now, if one of your clients were to injure themselves on your premises or suffer problems with products or services, your business insurance will step up to cover the issue. Other common problems include liabilities, data breach issues, property damage, etc.
Many contracts stipulate that you have insurance: Savvier contractors will likely ask to see evidence that you have adequate business insurance in case anything goes wrong with the products/services you provide. Many contractors will understandably shy away from working with you if they find you don’t have cover. Likewise, many business loans, rental agreements, etc require that you have insurance cover.
Protection against natural disasters: The world’s climate is changing rapidly, and extreme weather is now no longer the exception – rather, it’s becoming the norm. If you have business insurance, you’ll be covered for natural disaster events such as floods, hurricanes, lightning, fires and tornadoes.
Help with lawsuits: No matter how solid you think your business relationships are with suppliers, employees and customers, you still run the risk of being sued and facing legal fees. Again, business insurance will step up in times of trouble to cover fees and give you the best protection.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
