If you are running a business without being fully insured, you may be taking unnecessary chances and exposing yourself to the possibility of experiencing significant financial loss. Your business as well as the property that you operate out of are exposed to numerous risks every day. A robust business insurance policy may offer protection in these areas.
Theft and Vandalism
Criminal activities against businesses can occur in any location. Even if you operate your business in an area with minimal crime, vandalism can result in significant property damage. Theft may cause property damage when the criminals break in, and you may lose inventory, equipment, cash, and other valuable items. Business insurance generally includes coverage for these events and for other similar types of property crimes.
Criminal activities are not the only events that can result in property damage. For example, fires from a wide range of causes and severe weather could also damage your business property. If you own the building, you will be responsible all repairs if you do not have adequate insurance. You also may lose most or all of equipment, supplies, inventory and other items in the building and would need to absorb that loss if your business is not insured. If you rent your business property, you should invest in a renter’s policy so that all equipment and other items in the building are covered.
Loss of Income
Some events will result in the interruption of normal business activities. For example, if your building is destroyed by fire, operations may be impaired for several months. During this time, you still have operational overhead with minimal or no income to cover those expenses. A business insurance policy may provide coverage for loss of income for a specified period of time until your business is able to resume operations.
All businesses face numerous liability risks. For example, customers could be injured on your property, or your employees may cause damage to customers’ homes during their remote work activities. These and other liability situations could result in significant legal expenses that could be burdensome and even devastating to your business. Most business insurance policies include liability coverage.
If you do not have a business insurance policy that provides these essential coverages, now is the time to set up a policy with an independent insurance agent. You may also take this opportunity to review your existing coverage and to ensure that it still meets all of your needs.