Business Planning Process Planning & Strategy

Prioritize Business Insurance to Safeguard Your Earnings

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‘You can’t always control the accidents, but you can always minimize its effect.’

Your business is like your child, for whom you can do anything to protect it. Right? You spend every second of your youth to help it grow and create its name in the market. In fact, even imagining a situation where it faces any kind of trouble is no less than a nightmare.

From the very beginning of your company, you make sure that everything works out just as you planned. However, many entrepreneurs put company safety on the back burner in between all the planning and strategies. And that affects the firms during as well as after the crisis.

Every entrepreneur is well versed with the fact that their firm is surrounded by uncertainties. Thus, while making the initial plans for the enterprise, they should consider insuring it. Don’t you agree?

But wait!

In a recent study, it was found that 40% of small business owners don’t have insurance coverage. Moreover, they believe that purchasing one in the starting years of the firm is just an addition to the overheads. In their opinion, the firm needs to save money to cover the operation cost. And paying the premium of coverage is not a wise decision in such a situation.

However, that’s not an absolute truth!

Hang on! Are you thinking: ‘How is that not true? After all, how will the organization survive if they won’t save the money?’ We surely understand your confusion. And that’s the exact reason you should scroll down and learn more about ‘Why prioritizing your business insurance is not as bad as you might have thought?’

What Is Business Insurance?

The foundation of every startup is based on the risks. Once your plan succeeds, these risks turn into rewards. As a matter of fact, that’s why the CEO of famous brands encourages entrepreneurs to take risks. However, it doesn’t mean that you intentionally put your organization in danger without any back-up plan.

But what’s the best back-up plan? Yes, you guessed it right! Getting your business insured is your ultimate backup plan. How? Well, every type of risk results in financial loss. Even if your initial plan fails, at least having risk coverage will reduce the burden from your shoulders.

Unlike the risk associated with the general policies (life and vehicle), the risks related to the business varies from company to company. That’s why the experts at LoPriore Insurance Agency advise buying a uniquely designed policy. In fact, to get the best coverage, you need to disclose every vital information to the agent.

Type of Policies

Don’t know what coverage to include in your policy? No worries! There are plenty of options available for entrepreneurs to choose from as per their needs.

  • General liability coverage: If your customer ever gets injured while they are inside the organization or due to the product you sell. They can file a lawsuit against you. This coverage helps in protecting your firm from such lawsuits.
  • Professional liability coverage: If you or your employees ever make a clerical error that puts you in a lawsuit situation. Then this coverage can help you in dealing with it.
  • Commercial auto coverage: First of all, keep in mind that commercial auto (vehicle) coverage and personal auto coverage are different. If you are using your car for company use, your personal coverage will not pay you for that. You need to get commercial coverage for that.
  • Commercial property coverage: It will provide your firm protection against property damage from fire, vandalism, theft, weather-related damage, or undergoing repair. In fact, it is the most common type of policy that entrepreneurs take.
  • Worker compensation: It will help you compensate for the financial liability if an employee gets injured while working. It usually covers legal fees, medical fees, and a part of the employee’s salary till the time he/she recovers from the injuries.

You can either select any one policy or a mix of all. It depends on you and your organization’s needs.

Benefits of Policies to Your Organization

But the burning question is- how can you save even if you decide to purchase the policy? Its answer is given below. Keep scrolling and learning!

Minimum Financial Loss

If any uncertain event occurs, you are left with the liability to pay for the damage. But, if your business is insured, you don’t have to worry about the payment of damage. You can easily claim it from the insurance company and can cover the loss. The expense of repairs, medical loss, or legal charges, everything can be claimed that’ll minimize your ultimate financial loss.

Tax Deductibility of the Insurance Premium

The premium paid on the purchase of the policy is actually deductible as company expenses. That means you’ll be able to save money from the income tax (as per the IRS).

Liability Insurance for your Rescue

In a situation where your customer sues your firm for any bloody injury, your liability coverage can protect you from all the legal trouble. So, you’ll be able to focus on the growth of your company.

Elevate Business Credibility

When your customer and employees know that your organization’s property is insured, they get the idea that you can pay. It indicates that you are serious about protecting your firm and the employees. It creates a good impression of your enterprise in the eyes of an outsider (investors, customers, suppliers, etc.) and eventually enhances credibility.

Mandatory in the Eyes of the Law

According to the Small Business Administration, the organization must make sure that every employee is insured (worker compensation). If you don’t comply with this law, your firm can get into legal troubles and may also cease to exist.

Safeguarding Your Enterprise from ‘Act of God’

Not every event can be controlled by humans. The damage to the organization’s property due to flood, fire, lightning, tornados, etc., are such events. All these events are covered under the clause of ‘Act of God’ in your policy. Having coverage against these can help in minimizing the financial burden on you.

To Sum It All Up

You spend the most crucial years of your life nurturing your business, taking every step that helps in its development. So, why not purchase insurance to protect it from all the dangers that you can’t control? In fact, rather than being an addition to the expense, it’ll help you save more.

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