Bankrupt Proof Your Business: Is Your Business Insured?
As a Small Business Owner, the Number 1 mistake you can make concerning one’s business is not having insurance to protect your business a$$ets. You will be surprised that are many small businesses who do not have any form of insurance to protect their business a$$ets. Sustainable businesses know the importance of having insurance to cover their a$$ets while in business. This article is for any small business owner who fails to realize the importance to cover your a$$ets while in business. The best way to do this is by having insurance coverage for your business.
5 Reasons why you need insurance for your business:
1. If you want to do business with the government (local, state, or federal) you may be required to have certain types of insurance coverage. Also, you are mandated by law to have the following insurances, if your small business has employees: work compensation, disability, and unemployment. Failure to have these types of insurances to cover your employees will "result in fines, civil or criminal penalties, exclusion from public contracts and “cease and desist” orders — all of which could cost you far more than the price of an insurance policy.” (Chaney, 2016).
2. You can get sued by a dissatisfied customer or former busines partner concerning your business dealings. If so, you want to ensure that you have some form of liability insurance that you can use for your litigation costs and settlement costs. Liability insurance will give you a peace of mind and will ensure that your business doors remain open during and after court litigation (if that were to occur).
3. Having business insurance makes your business credible, in turn, other businesses are willing to do business with you or customers are willing to buy products and services from you. “Business insurance shows your prospective clients and customers that you’re a safe bet. If anything goes wrong with the work you do for them, you have a way to compensate.” (Chaney, 2016).
4. Business insurance protects you from the “what ifs” and “the unexpected” that occur in business. Such incidences include fires, floods, tornadoes, hurricanes, and health issues that may come up for you the business owner. With the proper business insurance, your business can continue to operate as it normally does. There are several businesses who did not survive COVID-19 because the owners did not have any insurance or the proper insurance for this type of “unexpected pandemic”.
5. If you plan to do business with other businesses, they may require you to have some form of business insurance. For example, if you want to have an event at a hotel or other public venue it is advisable to have liability insurance/negligence insurance to cover your business a$$ets. You would want to have some type of liability insurance for business events you are having in a public venue because the venue will have insurance to cover themselves. But that insurance will not cover your business. As the host of the event you must understand that you are liable for any “unexpected incidences” that may occur at your event.
These are some of the reasons why you need to have business insurance for your business. In the next “Bankrupt Proof Your Business” blog, we will discuss the types of insurances you may need for your business. Remember to always consult with your Insurance Agent to see what insurance is right to meet your business’ needs.
Sources: 1. 10 Top Reasons Your Business Needs Insurance by Paul Chaney. 09/08/16. https://smallbiztrends.com/2016/09/business-insurance-benefits.html
Donya Zimmerman’s alter ego is the Powerful Biz Woman. The Powerful Biz Woman mission is to encourage and educate women 35 years old and older to become the CEO of their own lifestyle through business ownership. She is a business educator, author, show host, and public speaker. Donya has created the Powerful Biz Chat Live Show that airs on Facebook Live. Donya discusses everything Business Startup and Entrepreneurial Mindset. Powerful Biz Chat Live airs three times a week at 800 pm. Donya has started a movement, along with her business partner, Alina Lopez Thomas, the Ultimate Biz Conference. The mission of the Conference is to educate aspiring entrepreneurs and small businesses on how to cover their a$$ets while in business. For more information on The Ultimate Biz Conference, subscribe to www.ultimatebizconference.com to stay up to date on UBC events, read our educational blogs, and receive helpful biz tips.
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