If you’re an entrepreneur, you’ve got a lot on your plate. And small business startup insurance is probably one of the last things on your mind as you manage your clients, build your business, hire employees, and continue to grow. In fact, it’s been estimated that up to 75% of startups and small businesses are uninsured or underinsured.
But insurance should never be an afterthought for your startup or small business. In fact, it could make or break your company. And in this blog from Coterie Insurance, we’ll be taking a look at the top 5 reasons that you need to invest in small business startup insurance.
1. Without Insurance, You’ll Pay Out of Pocket If You’re Sued
Business always has risks. Whether you’re an accountant and you make an error in your work, or you work in construction and damage a client’s home during a remodel, there’s a chance something will go wrong – and you could get sued.
If you don’t have liability insurance or professional insurance to cover yourself against these lawsuits, you may face a long legal battle, or even a costly judgment against your business if you’re found liable. Small business startup insurance helps you get the legal assistance you need if you’re sued, and ensures you won’t have to pay out of pocket if your business is found liable.
2. Insurance Coverage Can Protect You From Natural And Man-Made Disasters
Small business startups can also help protect you from disasters that are outside of your control, like floods, fires, catastrophic damage to your building, and more. Think about how devastating it would be if your business was damaged due to a natural disaster or man-made disaster.
With property insurance, you can cover damage to your building – and if you choose to get business interruption insurance, you can even get coverage for lost income while your business is closed or inoperable.
3. Insurance May Be Required If You’re Renting Commercial Property
In many cases, a landlord’s insurance policy will not cover you when you rent commercial property, and they may require you to carry your own insurance policy to cover liability and any potential damage to the property you’re leasing. Additionally, landlords often require a tenant to list them as an additional insured.
If you don’t have adequate coverage, you could be breaking your lease agreement, which could put you in a lot of trouble, especially if damage does occur to the property that you’re renting.
4. Small Business Startup Insurance Helps Protect Your Employees And Workers, Too
In many states, you’re required to have workers’ compensation insurance even if you only have a single employee. Workers’ compensation pays employees if they’re injured while performing their job duties.
It also protects you from liability. Workers’ comp is a “sole remedy” in most cases. This means that if you have insurance and an employee is injured on the job, they can only recover compensation from your workers’ comp policy – they can’t sue your company for further damages.
5. Insurance Coverage Makes You Credible, Can Help Win New Business
Having proper insurance coverage helps make your business more credible. Having proper insurance sets you apart when gaining contracts and getting new business. Providing a COI that shows you have the proper coverage instills confidence in your customers.
Some contracts and clients may even require a certain amount of coverage on your end. Carrying adequate coverage or upgrading your policies can help you meet these requirements and assist you in winning new business.
Need Small Business Startup Insurance?
At Coterie Insurance, we understand that insurance can be complicated. But we make things simple. You can learn more about insurance, get a quote, and even buy a small business startup insurance policy – in minutes! We recommend talking to a trusted insurance professional.
Whether you’re interested in a business owner’s policy, general liability insurance, or professional liability insurance, we’ve got you covered. Visit our website now to get a quote, or find an agent near you for further assistance.