Businesses nowadays have a plethora of potential dangers that can floor their company overnight, anything from patent infringement to bounced checks. A primary reason that businesses fail and go bankrupt is that they lacked the proper business insurance to catch them before they fell. Here are 5 reasons you should definitely consider paying a small monthly insurance fee to prepare for a potential financial disaster.
Recently, Apple just won over 1 billion dollars in a patent lawsuit against Samsung largely over something as minute as the corners and ridges of developing smartphones. Don’t assume your company is safe from patent infringement – there are always developing companies that will tenaciously defend their original ideas on any kind of business methods, and if you’re not careful, you could be on the receiving end of a lawsuit. Business insurance can cover accidental patent infringement.
Accidents happen in every area of business, from an interpersonal level to a company-wide decision. Giving yourself a net of protection in case of a financial or legal battle can save your business in the end. Professional liability insurance covers most areas of potential liability, and it ensures your ability to maintain cash flow and business operations even in the midst of a possibly devastating lawsuit.
Often times we think the last thing that could happen to our company is a theft, vandalism, or even a natural disaster. However, these things happen all the time, and if you’re left with no insurance after costly damages and repair bills, you might as well throw in the towel. Business insurance covers almost all costs of damage without you even touching your finances.
Most companies don’t realize how effective and lucrative business insurance really is. Many potential customers will choose to not do business with a company with limited or non-existent liability insurance, especially in the investing and finance areas. Customers want a company where they know their investments are safe, and can be recovered if an accident happens. Providing your company with adequate business insurance will ultimately improve your chances of higher business development.
Finally, business insurance protects your company from itself. Mistakes can happen – a bad investment, an unforeseen series of expensive charges, even accidents made by the best and brightest employees can leave a company bankrupt without a safety net. Don’t leave yourself and your company vulnerable to a financial disaster that could have been avoided by a smart investment in business insurance.
Stephen Joseph runs a freelance writing business in Seattle, Washington and he specializes in writing for small businesses.