Running a business is a great idea, but it's not without risk. Property damage, legal disputes, employee injuries, unexpected events, all of these things that can happen and there are countless factors that can disrupt your business operations or result in financial losses. This is where professional insurance comes in. Whether you're operating a small start up or you're operating a large enterprise without professional insurance, your business is exposed. It's not just a safety net, though, it's a strategic asset. If you are still not sure as to why your business needs professional insurance, it’s time to familiarise yourself with these 5 reasons to get you covered.
By Team Savant
Image: Markus Winkler
It Protects Your Assets and Your Operations
A business is only as stable as the protection behind it. With professional insurance, you can safeguard your tangible and intangible assets, such as your inventory, your real estate, intellectual property and your equipment. Fires, floods, thefts and cyber attacks can cause significant disruptions and financial losses, but only if you're not properly insured. With professional coverage in place and a good relationship with a loss adjuster, you'll be able to quickly recover from these incidents without shouldering any full burden of the cost.
You'll Be Legally Required To Have It
More than just being a protection racket, insurance is legally important. Depending on industry and your location, certain types of insurance have to be required by law. Liability insurance, for example, is often mandatory for businesses that deal with the public. In other cases, clients or partners may require proof of professional insurance before entering into contracts or business agreements. If you don't have this insurance, you're going to lose clients and cost yourself a lot of profit.
You Could Mitigate Your Liability and Legal Risk
Accidents can and will happen, customers can slip on wet floors, products could cause malfunctions, and employees may unintentionally breach a contract. When these situations lead to lawsuits or legal claims, the costs can climb. Professional liability insurance helps to cover your legal fees and your settlements, as well as any court costs.It can also prevent legal issues from turning into financial disasters for your business. With this kind of protection, you can ensure that your business navigates challenges without putting your company or your personal assets at risk.
Damage or Loss?
If there is a significant issue and you have to make a big claim, the relationship that you have with your loss adjuster will play a vital role in you being able to recover what's lost. If there has been a disaster where you've lost a lot of money or a lot of property, working with qualified loss adjusters will help you to streamline the claims process. This reduces the risk of disputes and it makes sure that your business receives the compensation to which it's entitled.
Continuing Relationships with Your Stakeholders
The most important benefit of professional insurance is Peace of Mind, and knowing that your business is protected will allow you to focus on innovation and growth. It also reassures your employees, investors and clients that your company is prepared and responsible in the face of any unforeseen challenges.