Starting a business is kind of scary and exciting at the same time. There are so many risks you are taking. These risks include bankruptcy, financial risk, environmental risk, competition, reputation, etc. This is why we should plan out our businesses before even starting. For example, if you are starting a cleaning company, handyman business, etc. you have to take into account your vehicles, do you have a fleet? If so, you will need to make sure they are fully serviced, compliant, tracked, and so on, with companies such as Lytx, so they can be used for business purposes. Every area must be looked at before getting a business going.
As you venture out to start a business, you need to have a few documents to create it. The most important one is having insurance. Here are a few reasons why:
It is in the Law
U.S Small Business Association states that businesses need insurance. It is in the Law. Failure to do this would lead to paying for criminal or civil penalties or fines, exclusion from any public contract, as well as cease and desist orders. You can avoid all these things by just getting the right coverage for your employees.
You can get sued
We have a rather litigious society nowadays. What if your employees file a lawsuit against you? Your business could vanish with no insurance. Though you may win, you’ll still lose a lot of money because of all the things you have to pay for.
You can get liability insurances that would give you peace of mind. This avoids the possible loss of your business.
It keeps the business going
In the unforeseen circumstances that may happen, like your business closing for several weeks because of individual calamities that may ensue, having insurance can keep your business going. This is why BOP or Business Owners Insurance will play a crucial role. It will help cover the money you lose in the case of these unforeseen and unfortunate circumstances. Similarly, keyman insurance or key person insurance allows businesses to plan during the demise or disability of an individual who is critical to the business operations.
It makes you appear Legit
If you look at it, having insurance guarantees and assures your clients that you can compensate if something goes wrong. This is why some businesses carry the words “licensed, insured, and bonded” because it creates trust, and customers will find comfort carrying out transactions with you.
It guards your employees
Some companies offer insurance for their employees and shield them in case of an accident. That way, if anything happens to them, the family would not have to spend money trying to pay for medical bills or, worse, funeral bills.
The Law mandates business owners to carry insurances for their employees. Another consideration is to offer disability coverage, regardless of whether your employees will have to pay for a percentage of the total cost. Looking into disability insurance and what it entails is a good reference when thinking about what coverage your employees have in terms of injury at work and what can be done to protect both you and your employees.
Covers “Act of God”
Scary when accidents caused by God and humans alike happen. But they do, and there is a way to help protect you, your business, and your employees. That is to get insurance. Your business can get affected by natural disasters. Coming back from an established business after a storm and starting from zero is difficult and heart-breaking and would break your bank. Having insurance coverage helps avoid those.
It attracts employees and would make them want to stay
Your employees would feel loved and cared for because your company cares enough to cover them with insurance. During my teen years, some of the fresh graduates from my church talked about it. The company has insurance coverage, so they are considering taking the job. It assures employees’ families would be left with nothing if they were taken away from this world.
No one can predict what’s coming
You’re not Michel de Nostradame to predict the future or know what will happen in the future to you and your business! It will be grand if fortuitous events did not occur, or if you do not get sick, or if you are immortal. But you’re not any of those, and natural disasters are a pest to the world.
Insurances help. They do, and they’ve been attested to by many business owners who may have encountered such problems and risen from the pain of bankruptcy and loss of clients and all of the other heart-crushing issues business owners may face.
Suppose you are starting a business, including insurance as part of the paperwork you need to work with. It may cost much at first, but your business and your employees will thank you. Take care of your business and your people. This is one way to succeed in your journey as a business owner.