Why You Need Business Insurance
Business insurance helps you protect your interests and the safety of your employees and clients. There are many types of business insurance depending on the risks covered. The common types include workers compensation insurance, third party insurance, professional liability insurance, and product liability insurance. Here are some of the reasons you need business insurance.
A Legal Requirement and Protection For Employees
In many states in Australia, businesses are required to have insurance. For example, third party insurance may be mandatory if you deal with transportation services. The policy protects your drivers in case of accidents. However, even where insurance is not required by law, running a business without it would result in financial losses in the following scenarios:
- If a customer sues you for injuries sustained at your business quarters
- If a computer or hard drive containing a client's personal data is stolen
- If a fire destroys your files or building
Business insurance also protects your employees. For example, workers compensation insurance protects your employees from work-related illnesses or injuries. Some of the benefits of workers compensation insurance include:
- Medical Expenses
- Funeral Benefits
- Lost Wages
Credibility and Employee Retention
Having insurance makes you look credible. Business insurance proves to your customers and prospective clients that you care about their best interests. Customers are willing to work with you because if anything goes wrong, you will compensate them. This is one of the reasons some companies have the signage "licensed, bonded and insured" on their vehicles. Having insurance builds trust and tells your prospective clients that you will deliver quality services.
Employees feel secure working for a company that is insured. Job seekers are motivated by benefits packages such as health, life, and disability insurance. Also, if you do not have these benefits, your employee retention rate will be adversely affected. In fact, you are likely to lose good and skilled employees to a company that is insured.
Endnote
Business insurance is one of the things every business person should consider when running a business. Mistakes and hazards occur when you least expect and it would be better if you have insurance to cover you against these unprecedented events. Business insurance does not only protect you from lawsuits, but it also protects your employees and has a positive effect on your employee retention rate. An insured business also looks credible and attracts clients. Consult an insurance agent to determine the most appropriate policies for your business.
Contact an insurance broker, such as National Corporate Broking Pty Ltd, to learn more.
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