The 9 Reasons: A business case for insurance

Business insurance is a purchase of protection for your business should there be something bad happening to your business within the insurance coverage period.

It can be difficult to perceive the real value of insurance since you don’t always benefit from it every time.

1. Legal imperative for Business insurance

In most states, small business insurance coverage is required by law, in few circumstances where there is no law on business insurance, the risk of financial loss should be a beneficial reason.

Without business insurance, your business may face significant risks and loss, if:

• A customer sues your business after being injured at your work place
• A computer with your clients’ financial information is compromised or stolen
• Fire destroys your building or assets

2. Business Insurance Protects Your Employees

In some jurisdictions, a workers' compensation insurance is mandatory. Workers compensation insurance offers compensation to when they suffer work-related injuries or illnesses, it provides benefits like free medical care to the affected employee, funeral benefits and compensated wages during the time the employee is out of work.

3. Business Insurance Protects Your Clients

Your clients can also benefit from business insurance. A Business Owner’s Policy (BOP) combine business property and business liability coverage into one to help protect your business from:

• Property damage
• Personal and advertising injury
• Bodily injury
• Product liability
• Data breach

For instance, if one of your customers slips, and suffers injury, this policy can compensate and pay for medical costs.

4. Business Insurance Builds trust and Credibility

Having a business insurance policy, serves as an indication to customers and other third-parties that you are concerned about their safety and matured in your risk management. It also helps communicate to everyone that you’ll provide the right protection, no matter what accident occurs.

5. Contracts May Require Business Insurance

Some business arrangements require that before a contractual relationship, there is a business insurance cover in place. Some examples of these arrangements include:

• Accessing credit to finance goods
• Establishing Loan agreements
• Clients agreements
• Renting out of office premises

6. Business Insurance Can Help Recruit and Retain Employees

A business insurance can also serve as a tool to attract and retain the right caliber of employees when they are making career decisions. Benefits like life, health insurance for self and family are key factors that is considered. The unavailability will mean employees will have to pay out of their pockets to cater for themselves or family members when they are ill.

7. Business Insurance Protects Management

An employee liability insurance or management liability insurance can help insurance employees or certain key management personnel (Owners, directors, CEO, etc.) against law suits.

8. Business Insurance Protects Against Natural Disasters

Some jurisdictions, are home to natural disasters, some natural disasters like: Flooding, Fires, Tornados and Hurricanes.

An insurance cover against natural disasters help protect business’ assets and the property against disasters.

9. Provides tax benefits

Life insurance payments or premium payments helps business to benefit from tax savings. The premiums paid under the policy are allowed as tax deductible deductions and it reduces the amount of annual corporate tax payment