Sometimes, our mindsets could be misleading us in business. This is especially true when it comes to shelling out money. For one, we may fail to see the benefits of regularly training our personnel. But it’s important that we do. As the leadership guru Stephen Covey, world-famous author of the phenomenal book “The 7 Habits of Highly Effective People,” said, we need to balance the P and the PC, which simply means we should consider sharpening the production capacity of our employees and not just their production.
The same holds true for insurance. Many would think it’s a waste of time. Worse, some consider it a waste of money. Why pay for something that you’re not sure will happen to you, right? But a closer look will tell you insurance is as old as the history of business. It goes back to the days when America as a nation was not yet even born. What’s more, it was Benjamin Franklin, one of the founding fathers, who co-founded the first insurance in America in 1752.
If you fear that insurance is but a waste of time, fret not. The biggest businesses protect themselves with the best insurance policy that money can buy. Here are three reasons why getting insurance for your business is good for you.
Liability Protection
If you don’t plan for contingencies, you’re going to be in a tight situation when accidents happen. This is where insurance can protect you. Indeed, your business can become an easy target when a site accident happens. If you don’t have insurance, then you’re bound to shell out money for occupational hazards that can happen to your employees.
Think about it. In 2019 alone, government data revealed that 5,333 fatal injuries took place at work. There were even more people who were injured that year. This means that if any of these accidents happen to your business, you’ll end up paying for your employee’s medical expenses for years to come. That can certainly hurt your business.
You might think you’re off the hook if you pay for these basic expenses. But the truth is if someone in the office gets injured, they could sue your company for damages. This isn’t just limited to your workplace. Your company driver, who could be driving a company car, could meet an accident on the road while on an official errand. Insurance can take care of medical expenses and other liabilities when that happens.
On a side note, it’s also the reason why consulting a car accident lawyer is timely when something happens to your company car on the road. A competent attorney can help your driver prove his case. More importantly, he can help determine who’s at fault to make sure insurance claims are as spot-on as can be.
Protection against Theft
Additionally, small business insurance can go a long way to cover the costs of goods or equipment that have been stolen from your business. Now, you might not think it’s important. Then again, remember that as of 2019, the amount being stolen has risen to billions of dollars. You might not even believe it, but employee theft (stealing by a company’s own employees) is a staggering $40 billion industry.
So what will happen to you if such unscrupulous acts materialize? You’re bound to suffer. Warehouses and small storage are especially vulnerable. Fortunately, an insurance policy can also cover the expenses of office equipment in the event of break-ins.
Indeed, things could easily add up over time. Getting compensation from an insurance company can be a surefire way to salvage your loss. Things will certainly look ugly for you if the majority of your inventory is lost to theft.
Protection against Natural Disasters
Another unpredictable event that could hold your business hostage is a natural disaster. In 2011, for instance, 341 Japanese companies went bankrupt because of a massive quake-tsunami, leaving behind a humongous trail of destruction and debt.
Imagine how much damage you will incur if your business is hit by an earthquake. You’d be looking at rubble, and such an accident will jeopardize your company’s future.
A good insurance policy will cover the cost of replacement and will have you up and running in no time. You’ll be able to bounce back just like that. But if you don’t have an insurance policy for your business, you’ll be forced to cover all that expense right out of your very own pocket. That can definitely put you in a very tight situation.
Insurance lets you breathe easily. You won’t have to lose sleep because of untimely and unprecedented events. Best of all, you can focus on what matters most: expanding your business to greater heights.
