Too many business owners learn the importance of having business insurance the hard way. Learn from the mistakes of others and read the following reasons you need insurance to protect your business.
1. A Corporate Shield is not as Strong as You Think
One mistake small business owners make is thinking a corporate shield is all they need to safeguard their personal assets. Unfortunately, there are still some scenarios in which the corporate shield doesn’t have you covered. It’s possible for you to lose everything you own without business insurance.
2. Other People’s Insurance Doesn’t Always Cover You
Your business isn’t necessarily covered by someone else’s insurance. For instance, if someone crashes into your store, their insurance may not cover the damage they caused to your property. Therefore, repair costs must come out of your own pocket assuming you don’t have business insurance. Of course, if you have the proper insurance that covers damage caused to your store by other people, then you don’t have to worry.
3. Standard Insurance May not Be Enough
Some business owners think that standard accident coverage has them protected in case a customer is injured on their property. While this may be true for some businesses, it isn’t for others. It all depends on the type of business you operate. For example, if you run a martial arts studio, then standard insurance won’t cover all types of accidents that could occur. You must look into more specific martial arts insurance packages to find a good deal. Companies like the Marine Agency Insurance provide targeted insurance packages for businesses.
4. Your Personal Auto Insurance Probably Doesn’t Cover You if the Car was Used on Business Errands
Another insurance fact that few people know is personal auto insurance often excludes coverage for accidents that happen while you’re using the car for business. Check your insurance policy to find out whether or not you’re still covered if you get into an accident while driving the car for business purposes.
5. Protect Your Business by Having the Necessary Insurance It Needs
Business insurance is important for small and large businesses alike because accidents are unpredictable. You never know when something catastrophic will occur to your business, resulting in you having to pay extensive fees whether to compensate another person or to repair losses to your business.
Even if you currently have insurance for your business, it might not be enough to protect you and your business. It’s important to learn about the different types of insurances used for business and consider whether your type of business, such as a martial arts studio, requires a little extra protection from a special business insurance package.