Posted on: 15 November 2018
When you are just starting out with a new business, money might be tight and you are likely trying to keep expenses to a minimum. That said, one expense you absolutely need to budget for every month is the premium on your business insurance. Here are three reasons why starting a new company without insurance is just asking for trouble:
It Might Be the Law
Depending on your state and how many employees your company has, your business might actually be legally required to carry different types of business insurance, including policies for workers' compensation or disability. Reach out to your local government to get more information on what is required of you before you make your first sale.
Pay a Little Now or Lose Everything Later
Is the reason you are trying to skimp on business insurance because it will eat away at your bottom line while you are just getting started? Have you stopped to consider what would happen to your business if disaster were to strike? Do you live in an area prone to tornadoes or hurricanes? What if a fire breaks out? The point is, there are many different scenarios and events that could leave your business completely destroyed. If you've already put your life savings into opening up shop, you will be personally and professionally devastated if you lose everything without an insurance policy to fall back on.
It's a Lawsuit-Happy World
We live in a society where it is simply all too easy to take someone to court. Someone could trip and fall on your property, a client or vendor could decide they didn't get a fair deal in their latest contract, or a fired employee could decide they weren't treated fairly and choose to take it to court. You might even be held partially responsible even if you personally didn't do anything wrong. If one employee sues another employee for sexual harassment, he or she could also sue the company by claiming that you helped foster the culture in which the harassment took place. Business insurance can give you peace of mind by offering protection in case something goes terribly wrong.
Don't open the doors on your new business until you have adequate insurance for anything that might happen on your property. Reach out to a local insurance provider and they may be able to offer you a package deal aimed at covering you in multiple situations. For more information, contact business insurance providers like Welsh Insurance Agency Inc.Share