Seven Reasons to Purchase Business Insurance

If you own a business and want to protect it, purchasing business insurance from agencies such as pembrokeinsurances.ie should be at the forefront of things to do for you and your company. You have built a product, brand, etc., pouring your valued time and effort into creating a successful business; it seems only obvious that you would do everything in your power to protect your investment from anything that might threaten to undo what you worked so hard to build.

Here are seven reasons why having business insurance should be a foregone conclusion when you are running a business.

1. Protection from Lawsuits

An important, if not the most important reason, to purchase business insurance is to protect against damaging lawsuits. Business owners oftentimes don't feel the need to pour money into an insurance policy, believing they will never have need of its services, therefore being a wasted expense. However, clients don't maliciously file lawsuits; they file in order to identify liability.

It only takes one mishap or disagreement for a lawsuit to be filed, and without business insurance, you will find yourself stuck with weighty legal fees that could potentially sink your business.

2. Substantial Investments

Most often, a businesses capital is tied up in investments, whether it be in property, equipment, or inventory. This is reason enough alone to purchase business insurance.

A successful business can probably overcome a slight issue with one of their investments without insurance, but all that it takes is a major issue with a shipment of inventory or equipment or property to get damaged and the likelihood of your business surviving becomes remote. Business insurance will protect against this, ensuring that major investment calamities don't shut a business down.

3. Contract Disputes

Similar to lawsuits, contract disputes have a way of ending up in court, or at least in arbitration. Business owners may feel that the contracts with their clients will settle any disputes that arise in the future; however, oftentimes disgruntled clients resort to arbitration to settle any disagreement they might have over a contract dispute. The lofty legal fees that accompany these disputes can drain a companies revenue, but such wouldn't be the case if the business had insurance to protect itself from such issues.

It only takes one mishap or disagreement for a lawsuit to be filed, and without business insurance, you will find yourself stuck with weighty legal fees that could potentially sink your business.

4. Employees

Most business owners have employees working for them, and those employees depend on you for their job security. Without business insurance, your company could fall victim to any number of financial calamities that could run your business into the ground and leave your employees stranded without a job.

5. You Want to Secure a Loan

There will undoubtedly be times throughout a business's lifespan when the owner will need to secure a loan, but without business insurance, the investor may demand an abnormally high-interest rate to the loan. Why? Because having no insurance shows the investor that you care little about your assets, which in turn levies more risk on their part, hence the raising of the interest rate.

By owning business insurance, it shows that you care enough about your investment to ensure its vitality.

6. Too Small to Be Worth It

Often times small business owners decline insurance because their company is small and their assets are few. The problem with this is that issues that can deplete a business's revenue stream can also be the cause of bad credit. A small business owner with bad credit will have just as tough a time finding investors when it is time to rebuild than a much larger business with the same issue. Investing in insurance might not seem worth it to the small business owner, but the protection it offers could be crucial in acquiring future loans, especially for a reasonable price.

7. Allows for Risk-Taking

Business insurance gives companies peace of mind. There is no worrying about potential lawsuits that could drown the business, disputes that threaten to tie up the company's revenue stream, or mishaps that lead to years of rebuilding. With business insurance, companies can focus on the day to day operations with the freedom to vigorously pursue the company's best interests.

When doing this, businesses are able to take more risks without worry that a failed risk could sink the ship. Many times it is the risks that companies take that lead them to prosperity, and insurance is a big part of why they feel free to take these risks.

So, if you own a business and wish to protect your hard-earned investment, purchasing business insurance should be priority number one. Without it, it only takes one untimely problem to bring everything you worked so hard for to come crashing down.