Running a business comes with plenty of potential risks, so you need to make proper plans for preventing them and making sure your organization keeps running smoothly.
Unfortunately, you can’t control every situation, which is why you need to insure your business against common risks, such as an employee getting injured and filing a lawsuit, or a flood destroying your property. With that in mind, take a look at the most vital reasons why you should get insurance for your small business.
Protecting Your Employees
Your employees are your greatest assets, so you must make sure they’re safe and fully protected at work. However, accidents happen, and some of your employees may get injured on the job, so it’s your responsibility to help cover their medical bills and lost wages if an injury prevents them from working.
This is called worker’s compensation, and it actually helps you avoid lawsuits that potentially injured employees may file to get benefits because of your or someone else’s negligence.
Preventing Financial Losses
An injured employee may file a lawsuit against you or your company, leading to big financial losses. Even if you win the case, the legal defense fees may put you out of business.
That’s why you should get liability insurance, which not only will protect your finances and your overall business, but also give you peace of mind and help you focus on your core competencies.
Just like you can’t predict accidents in your organization, you can’t predict what’s known in the insurance industry as “Acts of God”, that is, natural disasters.
What if a flood completely destroys your business property? What if lightning strikes and causes a fire? Not only could someone get injured or die, but you could also suffer great financial losses.
This is why you should get property and casualty insurance, and make sure that you keep your business afloat in case of a potential natural disaster.
The Law Requires It
The law actually requires small businesses to provide their employees with several types of insurance. For instance, in the state of Michigan, you must provide worker’s compensation in case your employees get injured, and you must have general liability insurance.
These are the most important reasons for insuring your small business against certain risks and running a successful organization where every employee is safe and sound. Therefore, get affordable insurance for Michigan small businesses and turn your company into a safe place where your employees can thrive.