If you run your own business it is incredibly important that you carry insurance at all times. There are too many people who think that they don't need to have insurance, because they don't understand what could go wrong with their business that they need to file a claim with the insurance provider. This is shortsighted and misinformed. Here are some things that you should know about business insurance.
1. Business Insurance Will Help In A Lawsuit
One of the things that you must always be prepared for is a lawsuit. It is not unlikely that someone will have a grievance against you and you will end up with a lawsuit on your hands. The lawsuit could be for a variety of reasons. Perhaps someone had a product that was faulty and it injured them in some way. Or it could be that while on your property they fell and blamed you for it because the walkway wasn't clear. Or it could even be that they used your product or services and they don't feel like it delivered on what you said it would. In many cases, the lawsuit doesn't even have to be merited. The person can file a lawsuit, and even if it is silly you may stil have to fight it, and may still have to settle it. Insurance can give you liability coverage, so that you aren't in trouble if you are sued.
2. Unforeseeable Losses
Assume that you have someone who is the brains behind your operation. Perhaps you have someone, or it could be yourself, who consults people. The product is essentially this person. Well what happens if something happens to this individual. What if they are disabled or killed? Your business is all of the sudden finished, even though you may still have outstanding contracts to fulfill. Business insurance can give you kind of a life insurance policy part of it. Where if something happens to the person or the product, you can get money to pay back and make good on those orders.
3. Loss of Property
Finally, business insurance can help with loss of property. If you have damage to your product, or to your building, you can access your insurance policy to get reimbursed for money you may have lost. This is a pretty standard part of business insurance.
As you can see there are many reasons to always carry business insurance.