If you own a business, you may ask if you really need business insurance. It may not be required by law, but there are many reasons to have it. Businesses do need a certain amount of insurance, such as workers’ compensation, unemployment, and disability insurance, but having an actual business insurance policy isn’t a necessity.
If you don’t want to get business insurance, you must be prepared to handle any costs out of pocket. If your company does not have the financial backing to manage that risk, your business could be completely ruined with an unfortunate accident. Most business owners don’t want to run that risk and business insurance provides that peace of mind.
Coverage options for businesses is widely customizable, so you can tailor your plan to your specific needs. Some aspects to consider include the type of work your company does, the location of your property and type of building you’re in, your team of employees, and your customer base. As your company grows and shifts, your coverage needs may need to shift as well. Most businesses will benefit from getting insurance, particularly those that:
Three examples of how a business insurance policy can help a business are explored below:
Food service businesses benefit from at least a liquor liability policy and a temperature change policy. Liquor policies can cover risks such as accidents or complications caused by patrons that have been served alcohol. If a trip and fall occurs or a fight breaks out on your property, a policy can protect you. Temperature change policies can cover repairs and losses if freezers or refrigerators malfunction and food stocks spoil. Additionally, if a customer gets food poisoning or an injury from consuming a product from your restaurant, a policy can help cover those possible costs in case of hospitalization.
For retail businesses, a business insurance policy can cover delivery or manufacturing issues such as a shut down or damages. If a third-party manufacturer suffers damages, you can be covered for those lost items. You can also be covered in the case of theft of merchandise or cash from your cash register, whether it was an employee or a stranger. Vandalism and other damages can also be covered in a business insurance policy.
Insurance policies that cover off-site issues are beneficial for landscaping, cleaning, and other companies that spend the majority of time at various locations. If equipment is damaged during a job or during the commute to the location, a policy can help cover those costs and get you back working again. If any chemicals were used during a job that caused a pollutant or health issue, that also can be covered.
Every business has unique demands of coverage. For all your insurance-related questions, Four Seasons Insurance can help.