Why every business needs insurance

Content provided by a guest contributor.

Every business owner’s main objective is to grow their business and become successful because their business is important to them. A business doesn’t only bring in money for business partners and investors, but businesses help create jobs for many people across South Africa.

With the high unemployment rate, businesses are extremely important for our economy, regardless of how big or small it is every business helps decrease the unemployment rate. This is why having insurance for your business is extremely important. Not only does it protect your business, but it protects you and your employees. If you still aren’t convinced as to why you need business insurance then read the reasons below on why you need insurance.

Business insurance gives you peace of mind

One of the greatest benefits of having business insurance is that it gives you peace of mind because you know that your business is secure. There are many unforeseen problems that can happen to your business such as accidental damage, machinery breakdown, fire, or theft.

These incidents can happen when you least expect it and knowing you have insurance cover puts you at ease because you know that your insurance will take care of the situation. You can’t predict what will happen now or in the future, so when you’re insured you can at least know that you will be covered and you can focus on your work and grow your business.

You can reduce your business risks

As a business owner, you may be in control when it comes to your business but you can’t control everything. Some things are out of your hands, such as theft, fire, and other unexpected damages that may occur. An unforeseen incident can occur at any time and if you aren’t prepared for it, and could cause financial problems for your business.

The best thing you can do for your business is to be prepared instead of figuring it out what to do when the situation is already out of your control. Always keep this in mind, since damage control isn’t the best way to handle things, as this may have dire consequences for your business, like closing your business indefinitely, which won’t bring in any money.

Having insurance is especially important for small businesses as risks can be detrimental for a business that is starting up. If your business is fairly new it would be best to contact an insurance company and get insurance quotes for your business.

Think about your equipment and assets

Your equipment and assets are a big part of your business and it’s important that you've insured them. Mistakes and accidents can happen at any given time, including things like your electronic equipment stops working or office content gets stolen.

Sometimes you can’t foresee any one of these incidents that are happening before it actually happens. This is why you should always be prepared and have emergency assistance readily available for your business.

Having insurance allows you to be prepared. Buying or leasing out equipment is expensive, especially if your business had to replace the equipment out of your own pockets. Don’t put yourself and your business in stressful situations that could cause your business to close down.

Helps when you are needing finance

At some point, your business will need financing, either when you are starting out, in the first couple of years or when you need a business vehicle. Most authorised financial service will require your business to have an insurance cover. Not only will it help you get finance, but should something happen to the business vehicle you can at least claim from your insurance. Bear in mind that should anything happen to your financed business vehicle your company is still liable to pay. So make sure you’re on the safe side because no one wants to pay for something they no longer own.

Insurance protects your employees

When looking for jobs, employees consider more than just how much they’ll be paid. Employees prefer to work for a business that is trustworthy, reliable and who have their employees best interest at heart.

Your business should have workers compensation in case your business is in a position where you’re unable to pay your employees, or in the unlikely event that they’re injured at work. You don’t want to have a lawsuit on your hands simply because you never had insurance to pay out an employee that had been injured at work.

The key thing to remember is that in order for you to run a successful business that has a safe environment, you will need insurance. When your business is insured you know that you are covered should there be a lawsuit or any incident that could put your business in jeopardy. Additionally, always keep in mind that you’re not the only one who benefits from your business, since your employees, their families, and your clients will also reap the benefit of insuring your business.

 

The content in this article was provided by Rogerwilco – a South African marketing agency based in Cape Town.

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