If you’re a business owner eager to cut expenses you probably at some point wondered whether or not you need business insurance. But millions of small businesses in the US choose to buy business insurance; why is that?
To answer that question, let’s look at what business insurance is, and what it can do for you. Broadly speaking, business insurance protects your business from financial loss caused by events beyond your control.
But, Will It Happen To Your Business?
“Nearly 40 percent of businesses fail after disaster strikes, and that figure grows dramatically for small businesses” Sean Kevelighan, CEO of Insurance Information Institute.
Seeing everything you worked for go up in flames is not something that most people would take lightly. Just one accident could set you back for years.
The Cost Of Insurance Vs The Cost Of Damages
There are many types of business insurance, including coverage for property damage, legal liability, fires, theft, vandalism, or employee-related risks. Claims for any of these incidents will cost your business. Very few businesses have the financial resources to pay claims without the assistance of insurance. So, saving money by not paying insurance premiums will cost you a lot more in the long run.
Paying only between $300 and $1000 per year for coverage of $2 million seems like a winning formula. Especially when a recent insurance survey revealed that, in the span of one year 35.2% of small businesses experience contract disputes, employee injury, theft, fire or some other event that can be insured against.
4 Ways To Save Money With Insurance
Below are just some of the ways business insurance can help you save money, as well as one simple thing you can do to save money and reduce accidents in your workplace.
1. Avoid Fines
Let’s face it, no one wants to pay fines. If you’re the owner and the only employee of your business, it might be legal for you to pay for no business insurance at all. However, that varies from state to state. Be sure to carefully check legal requirements, or consult a professional.
If you have employees, you will have to buy Workers Compensation Insurance, as well as commercial auto insurance, if your employees drive business vehicles.
2. Make Better Use Of Your Capital
While it may sound like a good idea to “save” on business insurance and just put some money aside in case of an emergency, that’s really not a very good idea.
Why keep money in the bank when you can use it to grow your business? Business insurance lets you invest more with peace of mind and grow your business faster.
3. Get Tax Breaks
Who doesn’t like a good tax break? Business insurance is a cost of running the business. That’s how really successful companies look at it. Thankfully, that’s also how the government looks at it.
That’s why you can write off your insurance premiums as tax deductions. Be careful to check state law, or consult a professional, before choosing a plan, as these rules are different from state to state.
4. Avoid Injury And Accidents
Many insurance companies charge lower premiums for businesses that implement some safety measures that make damage less likely. This is better for both the insurance company and yourself. The insurance company reduced the risk of payoffs, while you get lower premiums and get to work in a safer environment.
Insurance companies create loss control programs. These programs include safety rules and procedures, training, accident reporting and emergency procedures.
Having a system in place is a great idea, but it can be overwhelming (and expensive) to try to develop it on your own.
What You Can Do
If you want to protect yourself, your employees and your property, but don’t know where to start, there’s one simple thing you can do.
First, look for insurance agencies that have a safety incentives program. Ask them what incentives they can give you for making changes that improve safety and reduce risk of liability. Then just focus on those changes that save you the most money for the least amount of investment.
This will save you the money and trouble of trying to come up with a loss control program that’s best for your business, while also reducing risk of accidents and lowering your premiums.
Insurance companies are experts at reducing all sorts of risks. Why not use that expertise so you can save money and make your workplace safer for you and your employees?
For more information you can visit contractorsliability.com
Focus On What’s Really Important: Your Business
Put simply, with business insurance you’re able to spend less time and energy worrying about what could go wrong and less time and money when it does. If you look at it like that, it’s easy to see how business insurance can help you save time, money and effort in the long run.
