3 Reasons Why You Need Business Insurance

12/2/2021 (Permalink)

Why Do You Need Business Insurance?

Insurance can protect businesses from a wide variety of risks. According to The Hartford, 40 percent of small businesses incur property or liability losses within a 10-year period. Liabilities involving customers or employees may prove costly, but property damage is likely to interrupt the operation of a business. Water damage is one of the most common types of damage for businesses in Kings Point, FL . Learn more about the protection business insurance policies can provide.

1. Covering Costs

Business insurance should cover costs if a business is liable for damages or losses. A general policy may offset the following types of costs:

• Employee injuries
• Property damage
• Liability for customers

Maintain coverage for these common risks. General commercial policies should cover the costs of fire restoration or water cleanup after broken pipes, but an additional policy may be necessary for water damage caused by flooding.

2. Liability Protection

Business owners can rest assured that insurance will shield them from a wide range of liabilities. Review the terms of a policy to ensure that sufficient coverage is available for:

• Customers
• Employees
• Third parties

Businesses are exposed to a variety of liabilities and risks. Insurance coverage should provide protection.

3. Contractual Requirements

Some property contracts or other operational guidelines mandate coverage. This may be stipulated in:

• Client contracts
• Laws for businesses with employees
• Loan agreements
• Rental or lease contracts

Review every contract to make sure that your current insurance policies satisfy all requirements. Failure to do so may result in penalties or lost business.

These are three major reasons why every business owner should have insurance. Property coverage is particularly important when water damage or any other types of damage take place. It is important to regularly assess a business's level and types of coverage. If your business is not currently insured or has insufficient coverage, compare policies available for businesses in Kings Point, FL.