As per the U.S. Bureau of Labor Statistics (BLS), only about 33% of businesses make it to their 10th anniversary. Other than the inevitable market competition, most companies collapse due to financial issues. With lawsuits coming your way, equipment breaking down, employees resigning, and losses increasing, breaking even can only be a dream. However, business insurance for company covers your business during such disasters. Read on to learn how business insurance can keep your company running.
Makes You Certain About the Future
In entrepreneurship, there are a lot of future uncertainties. For instance, your company could be swimming in profits now and go bankrupt in the next two years. As per Statista, the failure rate of companies increases as years go by. That’s why business insurance is vital. As an entrepreneur striving to break even and increase profits, you will get to take risks occasionally. Some risks will naturally be more significant than others. Therefore, the only way to be sure about what happens if a business deal goes south is having insurance. This way, you will still be in business even when times get tough.
Covers You from Lawsuits
Similar to every other business, your company will likely face lawsuits resulting from, among other things, premises ownership wrangles, legal liability, accidents, and injuries. You may also be required to pay legal fees when such problems arise. You may receive a court order in worst scenarios instructing you to vacate the premises or compensate for an injured employee. As a result, your business may suffer or even collapse. Business protection insurance covers your company from all these. For example, workers comp covers workplace injuries and illnesses.
Safeguards Your Property
Accidents can occur in the workplace, causing damage and loss of property. As reported by the National Insurance Crime Bureau (NICB), most companies in the U.S. lose two or more equipment every year due to theft and vandalism. In particular, bouncing back after a loss can be very difficult. However, it’s all possible with insurance in place. Millions of companies get back to business after adversities with the help of business insurance.
Motivates Your Workforce
According to a recently published study by the NCBI, business insurance coverage can help boost workplace morale, engagement, leading to productivity gains. Moreover, workers’ compensation coverage and health insurance will ensure your employees recover quickly and resume work without paying top dollar for treatment. This will also help you save a lot of money.
Helps Your Business to Recover from a Tragedy
The fundamental reason for business insurance is to cover your business during difficult times. According to the Federal Emergency Management Agency (FEMA), only 40% of companies reopened after calamities, with 25% failing in the first year. In general, it’s not easy to get the money that covers all losses, especially for startups and small businesses. Besides, an enterprise that hasn’t reached break-even suffers, even more, when calamities come knocking. Even so, business insurance is there to help your company survive misfortunes. Insurance for my company should be among the first things every entrepreneur secures.
If you as an entrepreneur think that “I do not need insurance for my company,” then perhaps these facts will compel you to rethink your decision for the better future of your firm. Do you have additional questions about your commercial coverage? If so, then contact the experts at Gant Insurance Agency in McKinney, Texas. We are ready to assist you with all your business insurance needs today.