As a business owner, you should try everything in your power to protect your company and the people working for you. Therefore, insurance shouldn’t really be something you debate.
Nevertheless, some business owners wonder if it’s actually needed. It feels like an extra cost because, if you run your business right, you shouldn’t ever have to deal with the problems associated with insurance. So, can you save money and reduce your expenses by skipping insurance?
Technically, you can avoid buying some types of business insurance. However, there are a couple of things you legally need to have. Plus, I’ll go over why insuring your business is more beneficial than you think!
What insurance do you legally need to have?
By law, every business in the US must have workers’ compensation insurance, unemployment insurance, and disability insurance. This is a requirement put in place by the federal government, so there’s no way of avoiding these costs.
Depending on where your business operates, the state government might have rules relating to other types of insurance you legally must have. The only way to find out is by visiting your state’s website, or contacting the local government directly.
What insurance isn’t legally required?
Put simply, any other type of commercial insurance that isn’t any of the tree mentioned above. This includes things like liability, bodily injury, property loss, malpractice, and business closure insurance.
How can you save money on insurance?
One easy way to cut the costs of insurance, while still protecting your business, is by picking and choosing the coverage options that make sense to you. As you can see on CommercialInsurance.net, there are plenty of coverage options available, many of which your business will not need. For example, malpractice insurance is usually only needed by businesses in the medical field.
Likewise, liability insurance isn’t necessary if you work remotely. You have no business premises, so there’s no chance someone will injure themselves in the workplace. Or, if you do all of your work online, there’s no chance of injuring someone while you work.
You see, it’s a careful case of analyzing your business and consideriny what insurance you actually need. You will soon realize that money can be saved by reducing the coverage to some essential things – rather than paying loads for umbrella insurance.
What are the benefits of insurance?
The obvious reason to get insurance is that it protects your business. You are financially protected when certain things go wrong, allowing you to avoid suffering massive losses that could lead to the closure of your company.
Secondly, some types of insurance can actively help you attract clients. If you display that your business is insured – particularly if you do contracting work – then it makes clients trust you. You’ll see more leads, meaning you make more money.
In short, certain types of business insurance are legally essential. As for everything else, it’s entirely up to you to decide what you need. Save money by picking the coverage that’s right for you, and protect your business!
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