The only thing we can surely say about the business world is that it is always going to be fast-changing and more unpredictable than the present. Running a successful business is not an easy feat. You never know what’s going to happen in the future. Moreover, you don’t have any guarantee that everything will go according to your plan, which is where business insurance comes into play. Be it on-site injuries, natural disasters, theft, burglary, or property damage, a good insurance policy can help you deal with all of those problems that can arise on your journey. You can’t stop adversities and problems from happening in your business, but insurance is a full-proof way of ensuring that those problems don’t make your business go bust.
Insurance is an important part of any business and quite frankly a no-brainer for most entrepreneurs, but if you are still on the fence of deciding if you should invest your capital into seeking insurance, then below are the 7 reasons listed for why insurance is important for your business-
- To secure proper funding
If you are a startup or a small business owner, chances are that you are running on a limited amount of capital. And with so many things to buy and invest in, you probably need to secure some additional funding from other sources. In that case, Insurance becomes highly important, as it helps you secure those funds without a hitch. Banks, lenders, or other capital sources won’t invest in your business unless you have business insurance.
Not only funds, but contracts also require insurance as proof of credibility. Whether you are renting a workspace or borrowing money for financing goods, having insurance would help you gain all of that.
- Guards your Human assets
You are responsible for running your business, but what happens if something happens to you. Accidents, health concerns, or any other reason, your absence may cause a loss of revenue. Company-owned life insurance would provide you with payments for the loss of income in that case. You can also get this type of policy for any valuable employees as well so that their absence doesn’t affect your revenue generation. This would make sure that the business keeps running even when you are down.
- Helps you venture into risks
Risk-taking is an essential part of business growth. But no matter how calculated your risk is, there is always a chance that it could totally blow up in your face. Insurance would ensure that you can venture out and take thoroughly planned business risks without having a looming sense of worry over it. And if the plan fails, insurance payout would help you go back to your roots and start over. Not only risks, but insurance would also help you in your business expansion plans.
- Provides a safety net to your assets
No matter what your work is, you’d probably be surrounded by valuable machinery and other technological equipment. Be it computers, printers, or heavy machinery for manufacturing and production work. These machinery are not just expensive to buy, they also require a lot of money to fix. Insurance would help you fix these machines and pieces of equipment without burning a hole through your pockets every time something stops working.
In case of unprecedented situations such as natural calamities, property damage, or even theft, insurance would provide you with a security and safety net to help you through those times.
- Protects your employees
Employees are the most valuable asset of a business and it’ll pay to protect them in an event of an accident. Not only insurance would help you deal with employee compensation, on work accidents or work-related injuries, it is also a great way to protect yourself from lawsuits or liability claims. Even if you can win the lawsuit, spending money on lawyers and legal fees is just not worth it. Insurance can help you cover those expenses and most importantly prevent such situations from arising in the very first place.
Apart from accidents or doom and gloom scenarios, Insurance can also help you attract qualified employees. Job seekers look for benefit packages such as life, health, disability, or long-term care insurance, so having those perks may get you highly qualified and efficient employees.
6.Boosts your company credibility
Credibility is the backbone of the business, be it your clients, customers, or partners. No one wants to work with someone they can’t trust. Having insurance can help you build that credibility with your customers, employees, and business partners. Insurance is a great way to show your prospective clients and customers that you are a safe bet and if anything goes wrong with your product or service, you have a compensation or reimbursement plan in place to deal with it.
Not only clients, but you can attract great working partners and associates with an insurance plan in place. In case your end of the work goes wrong, your insurance plan can become your saving grace.
- You can’t predict certain things
No one can predict the future, especially when it comes to mother nature. Natural disasters such as earthquakes, floods, typhoons, and landslides, etc, all of them pose a big problem for your business. They can either ruin the whole business or force it to close for an indefinite amount of time and the worst thing of them all- There is no way to make sure these events don’t take place; hence it is better to be insured. Having a backup plan and exit strategy would not only give you peace of mind, but it’ll also ensure that you can dedicate your valuable time and energy to running a productive, rewarding, and profitable business for a long time.
There are various types of insurances and policies to choose from, so do your research or maybe take help from a consultant, but make sure you have a good insurance plan in place for your business. Take help from the top financial services companies and boot start your business.
As an entrepreneur, you might have a lot on your plate to manage already and might think of insurance as a secondary requirement, which can’t be further from the truth. Business insurance is not just an expenditure, it is an investment to keep your most valued possession and future safe and secure.
Abhyank Srinet holds a Masters in Management degree from ESCP Europe & has an engineering degree with a specialization in Instrumentation & Control. His interest in the digital landscape motivated him to create an online startup for Masters in Management application consulting (MiM-Essay), focused on spreading quality information about the MiM degree & performing application consulting services for clients. He is the chief consultant of the company and takes care of the Business Development and Digital Marketing side of the company.