Why Do I Need Business Insurance?

Why Do I Need Business Insurance?

July 24, 2020

When starting a business, it is essential for an entrepreneur to make sure that all costs are being accounted for. Typically, startup costs include licenses, assets, inventory, and any other items one may need or want for their business. However, an often overlooked expense comes in the form of business insurance. Insurance protects companies and individuals from financial losses, making it a necessary element to acquire, even if an individual is self-employed.

Underwood Anderson Insurance provides the expertise and experience to determine what type of coverages you may need for your business. The size, industry, number of employees, and location of the business will always come into consideration for this. Workers’ Compensation, for example, is an essential coverage that all companies should have, no matter how large or small. It tends to cover work-related injuries or illnesses of business employees. However, in more severe situations, it can assist coverage of legal costs if a business faces a lawsuit from an employee. Like any type of coverage, factors of the amount of coverage a business may need depend on job risk and the size of a company.

A business may also need property coverage, depending on where the owner chooses to build their business. If their business is from home, an owner could rely on their home insurance to cover any damage costs. However, if an owner invests in commercial business property, different policies are necessary to cover damage caused by natural disasters, criminals, or floods. These policies are usually combinable with other plans as well. It is beneficial to ask an insurance professional to combine them to make insurance easier to manage.

These are just a few of the different coverages a business may need to explore. However, there are multiple coverage options so it’s important to be informed on what a company may need. Each business is different, thus requiring different specific coverage. Without proper insurance coverage, an owner could end up facing negative monetary and social responses if a situation were to occur. Business insurance protects a company from the unanticipated. Underwood Anderson Insurance offers a variety of coverages for all types of businesses. We believe it best to consult an insurance professional, so nothing goes overlooked or under-insured. We work to advise our clients with the best business advice and appropriate insurance coverage we have to offer.