Business insurance Cabot can safeguard you against many of these risks and save your business from suffering losses. Operating a business comes with its own inherent risks. Unexpected things could have a detrimental effect on the business. It could be an injury to one of the workers, destruction of property due to fire or natural calamity, and a client may file a litigation suit etc. It can sometimes damage your reputation too if your prospective client asks for proof of liability insurance and you fail to produce.
Business insurance is essential for many reasons. Let us understand 5 main reasons why your business needs insurance.
1.Requirement of Law
As per SBA, the law stipulates that businesses having employees must provide insurance coverage for worker’s compensation as well as disability and unemployment as per the requirements of the law of the particular state.
2.Act of Nature
Your premises could suffer damages due to natural calamities like a hurricane, flood, earthquake, wildfire etc. Property and casualty insurance can cover the damages caused to the building, equipment, and stock etc. but your business also suffers due to this. Having business insurance also known as BOP can help your business survive a huge disaster by protecting it against loss of income.
3.Safeguarding Human Assets
You being the owner or founder of the business are responsible for the administering of the business activities. If you were to fall ill, meet with an accident and disabled temporarily or permanently and cannot attend to your duties, your business suffers. This could happen to one of your key employees too. Business insurance Cabot can safeguard you and your business in such situations through company-owned life and disability insurance.
It covers loss of income you would otherwise generate, and provides the funds for the same. In case of death or permanent disability, it provides funds for the purchase of your interests under Sell-buy agreement. You can buy coverage for your key employees which are known as “key man” insurance.
4.Contracts
The business contracts be it internal or external require insurance coverage as there are many variables that need to be considered.
If your business facility is rented or leased you have to have insurance as the landlord’s insurance does not cover it.
When you borrow funds for the building of the business, equipment, operations etc. insurance requirements may be included in the loan agreement.
Public contracts and contracts of clients may require you have insurance coverage in case the contract does not go as per the plan.
5.Attraction and Retention of Employees
Insurance is not meant only for the so-called “Gloom and doom” situations. It can also attract and retain good employees with qualifications and skills. Employees apart from good pay look for additional benefits like health, life and disability insurance and will move on to another company if you do not provide it for them.
Conclusion
Business insurance Cabot is essential for every business as businesses come with a lot of risks and these can result in huge losses and even closure if not covered for through proper insurance.