Times are hard out there, and businesses are doing everything they can to cut costs and stay afloat. However, too many business owners are giving in to temptation and canceling their business insurance, leaving them dangerously exposed to litigation, loss, and damage. A business should always prepare for the worst in life, and purchasing adequate business insurance is a great way of doing this. Taking risks with insurance can have five very profound effects on a business, the owners, and the employees.
1. No One Can Predict the Future
It doesn’t matter whether or not a business has called on an insurance policy in the past for help; no one knows what is in store in the future. In fact, many business owners take the decision to scale down insurance for that very reason – they’ve never needed to make a claim. However, should an employee become injured or a client sue for malpractice, the decision to pass on insurance will very quickly be regretted. If a business is left without coverage, it could face having to pay huge legal bills it simply can’t afford.
2. Employees Need Protection
Most states in America require that businesses have worker’s insurance coverage of some description. However, what about workers’ health insurance? And how will a business pay damages if an employee sues for lost earnings and injury? Insuring workers protects a business’ interests, motivates employees and sparks feelings of loyalty, which are precious characteristics in any worker.
3. Business Leaders Need to Focus
A business owner or manager who is preoccupied with potential losses and litigation will not be able to focus on what really matters – running the business. Business insurance provides peace of mind, which can breed confidence that would otherwise be lacking. Constantly making adjustments to the business premises and working practices because of a lack of insurance coverage can have detrimental consequences for any commercial venture.
4. Business Leaders Need to Take Risks
The very point of having insurance is to lessen the impact of risk and to deal with the financial consequences of unusual events. This type of financial buffer will allow company bosses to take risks in furthering the prospects of the business. New working practices can be tried, and new products and services can be taken to the market. A lack of insurance coverage could stifle the progress and innovation of a business.
5. A Business Relies on Client Confidence
Imagine a business deals with ready-made meals, and a potential restaurant chain is interested in putting those meals in its outlets across America. Would that restaurant chain be likely to buy those meals – and serve them to their own customers – if the manufacturer didn’t have extensive liability insurance? Probably not. A business with extensive insurance coverage instills confidence in potential new clients, and it is hard to put a price on that.
If you run a business and are looking for expert advice on insurance, call us today at 888-279-9700 or fill out the short form below, and one of our experts will get in touch!