3 Essential Reasons a Small Business Needs Insurance
Whether you’re an experienced business owner, or just starting out, one factor becomes immediately apparent: Your company requires insurance.
You may think, “I can get along without this expense,” but can you? Insurance might appear like a superfluous cost, one hindering your profits, but policies serve multiple purposes. One, they protect your investment – your company, ultimately – from risks associated with surprise events, liabilities, and losses. Two, nearly all states require businesses with employees to have worker’s compensation and unemployment coverage.
If you’ve ever thought about cutting out this expense, realize why it’s essential:
- The Law Requires It
States, including Connecticut, require companies supporting multiple employees to have two forms of coverage: Workers' Compensation and unemployment insurance. The former protects workers injured on the job, regardless of fault, covering the cost of medical care and lost wages.
- Protecting Your Assets
Whether you realize it or not, insurance serves as a safety net for unforeseen circumstances:
- Legal issues related to accidents, injuries, and negligence
- Covering the cost of loss or damage to vehicles, equipment, and property
- Protecting against financial losses associated with defective products
- Protecting against professional liability, such as malpractice, errors, and negligence involving your customers.
- Assisting with getting your business back on its feet after a disaster.
In many of these instances, the policy pays for damages and costs to third parties if you are found liable, as well as any attorney fees, repairs, replacements, or medical bills. While such policies often aren’t legally required, any business may find itself facing a lawsuit at some point, so insurance provides assistance after the process.
Because costs may be tight, small businesses may want to consider a Business Owner’s Policy, or BOP, for this type of coverage. BOPs encompass property, casualty, liability, and business interruption coverage and, as they are umbrella policies, offer lower premiums.
- Providing Your Workers With Benefits
Businesses of all sizes, in order to be competitive in today’s marketplace, should consider offering a benefits package. Options may include:
- Health insurance
- Dental insurance
- Life insurance
- Disability insurance
Whether your company needs insurance for legal reasons, to mitigate liability-associated losses, or to provide employee benefits, Ion Insurance specializes in small business policies. Contact any of our Connecticut offices to explore your options.
