Every business owner wants to minimize the risks that could affect them and their business financially. This is why businesses, no matter how big or small, tend to operate only when they have insurance coverage. Most entrepreneurs, on the other hand, do not understand the importance of insurance and thus start operating their business without purchasing an insurance policy. If you too are unsure about whether your small business needs insurance then here are some facts that will clarify things for you.
Your Business Can Be Sued
You care about your customers and deliver them the best service or a good quality product. That’s great, but you never know when an unhappy customer gets raged and decides to contact a lawyer. You should always think of the possibility of a black swan event and how it will affect you financially. In order to save your business from the heavy litigation charges and penalties awarded by the court, your general liability insurance policy will come in handy and your insurer will be required to pay for the damages or settlement.
Your Business Facility Can Be Inaccessible Thereby Halting Operations
If you are not operating in the service sector then you will be a part of the manufacturing sector where you have to operate a plant or machinery to produce something. But, if there are any natural hazards like earthquakes, land-sliding or floods that leaves you and your employees unable to reach the production premises, then your business operations will be affected and you will bear an opportunity loss. This loss that you may have otherwise not realized will be covered by your insurer if you had purchased business interruption insurance.
Most of Your Capital Is Tied to Plants and Machineries
As a small business owner, if you have purchased machinery and equipment to produce a product or to add value to it, then its damage or theft will wipe out your equity and will leave you bankrupt. This is why in order to avoid such a terrible situation from occurring, all small business owners need business insurance so that they can get their money back to help them re-establish their business.
Your Business can be a Victim of Cyber Crime
Cyber crimes around the world are on the rise and people get looted of their hard earned money electronically. If your business also transfers payments electronically or saves the personal information of clients for business use, then there is a high probability that the data or sensitive information can be stolen. This is where cyber insurance will come in handy and will compensate you for the loss that you have suffered because of the cyber crime against your business.
So if you are convinced that your small business needs insurance then we, at Freedom Insurance Agency, will be more than happy to provide you with this service. We’ve been providing insurance services since 1979 to our commercial and individual clients based in Maryland. Click here to visit our official website and browse the various insurance coverages that we offer. You can also contact us at (410)795-2000 to get a quote.