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When owning a small business there are several factors that you would have to consider; such as rent, permits, business structure and branding. Although all of these factors are essential in creating a successful business, it is crucial to understand the importance of business insurance.
Next Insurance discovered that 44% of small businesses in the United States have never had business insurance. Small business insurance allows you and your business to be protected from a potential lawsuit, property damage or theft. Without business insurance it is important to understand the amount of risk and liability you are putting both you and your business in.
Let’s say you are the owner of small local flower shop. One day you unknowingly spill water onto the floor after watering the flowers. Later in the day, a customer comes into your business and slips on the puddle of water and falls to the ground; resulting in a broken collarbone. The injured customer then sues your business for $50,000 in medical damages. Without business insurance not only are you liable to pay the $50,000 in damages out of pocket, you now must pay the cost of an attorney and take valuable time out of your day to handle the lawsuit.
Chron mentioned “It’s important to have business insurance because the financial consequences of a potential mishap could easily wipe out the assets of a small business.” You have worked hard to establish your business and it would be discouraging if your business took a big enough hit from a lawsuit that you would have to close your doors. Therefore, having insurance for your small business can save you time and money from a potential lawsuit.
The National federation of Independent Business made an excellent point in stating “The cost of an annual premium is far less than the cost of fighting a lawsuit in court if you find yourself uninsured and having to pay thousands or more out of pocket.”
It is also important to note that by having business insurance it makes your business more credible. By being a credible business, you will be more likely to retaining qualified employees; therefore, creating an even more successful business environment.
For more information about the importance of protecting your small business from unexpected threat, visit our website: http://propelins.wpengine.com/industries-served/small-business/
Makayla is the Marketing and Branding Coordinator at Propel. She is a recent graduate from University of Washington in Tacoma with degree in Business Marketing.