There are different types of insurance that can help businesses. Each type of business insurance helps protect you and your business in different ways. Whether it’s property damage, giving your employees benefits if they get sick or hurt from their job, or covering the costs to help your business recover from a data breach, The Hartford’s business insurance helps businesses prevail through the unexpected.
Most businesses start with general liability protection, commercial property, business income, commercial auto, workers’ compensation, and professional liability coverages. Some benefits to having business insurance include:
Business Insurance Helps to Minimize Financial Losses
Different types of insurance can help prevent potentially ruinous situations for your business. It can help protect you and your business in different ways. From repairing or replacing property damaged by a covered loss to helping cover the legal costs from a lawsuit, business insurance can help your business through the unexpected.
Without business insurance, you could be on the hook to pay for repairs, legal fees, replacement costs, and medical costs. And if you don’t have the finances to cover it, it could put your business in a bad position.
Increases the Credibility of Your Business With Business Insurance
If you show your clients or customers proof of insurance, it gives them peace of mind and can increase your business’s credibility. Your customers will know they’re working with an insured business and your work is protected.
Depending on the industry you’re in, some contracts may require proof of insurance before work can begin. Having business insurance can also help you in negotiations.
Lawsuits Against Your Business Won’t Leave You Strapped With Insurance Coverage
If a customer hurts themselves while at your business, they can file a liability lawsuit against your company. Or if there were errors in the service you provided a customer and they experienced financial damages, they could file a lawsuit.
Without the proper business insurance and coverages, you could be on the hook for paying legal fees and judgments. General liability and professional liability insurance help protect your business from liability claims. These insurance coverages are also known as business liability insurance and errors and omissions insurance, respectively.
In the Long Run, You Can Save Your Business Money
Purchasing business insurance is only one component of minimizing your business losses. Pairing insurance coverage with the right risk management strategies can save your business money. How? Claims and lawsuits can be costly. Implementing good risk management practices can help minimize the chance of a lawsuit. And with fewer claims on your policy, you may end up paying a lower insurance rate.
Consider implementing these risk management practices at your company:
Provide clear, easy-to-understand contracts. This can decrease the chances of a disagreement between you and a customer or client. If everyone is on the same page, lawsuits may be less likely to occur.
Ensure a safe work environment for employees. Regular training sessions to make sure workers are safe and understand their job can lead to less injuries or property damage.
Train employees on business equipment. When workers know how to use business machinery or equipment, it can decrease the chance of an injury. It can also help prevent a customer’s property from being damaged.
Protect Your Business From the Unexpected
If the building your business operates in is damaged by a natural disaster or an “Act of God,” it will have to be repaired. You may not be able to operate your business while repairs are being made. Business income insurance can help replace the income you’ve lost because your company is closed. This helps you pay ongoing bills, like rent, payroll, or loan payments.
For the damage to the building, commercial property insurance, which is also known as business property insurance, can help cover the loss. This coverage can also help you fix or replace your business property if it was damaged by the unexpected occurrence.
Business Insurance Protects Your Most Valuable Asset: Employees
If your employees get injured or sick because of their job, workers’ compensation insurance can help them. Workers’ compensation insurance can help cover your employee’s medical care if they suffer a work-related injury or illness. It can also help replace some of their lost wages, as well as provide a deceased worker’s family with a financial benefit.
Insurance Coverage Demonstrates the Responsibility to Take Ownership of Liability
By having business insurance, it shows you want to protect your business. To your customers, having business insurance shows them you have their best interests in mind.
Coverage for Equipment and Structures
Getting the proper coverage and business insurance is important if a natural disaster strikes. Repairs and potential replacement costs can be significant. Without coverage, you may have to pay for these costs out of pocket. Getting the right coverage can help your business weather the storm.
The Bottom Line: Business Insurance Benefits
Business insurance can help protect your business – an investment you’ve worked hard for. The Hartford has helped small businesses for over 200 years. Our goal is to help protect your business and give you the peace of mind knowing we’ve got your back.