The journey of building a business is one full of challenges and risks. Although risk is something you can anticipate, you can never be really prepared when calamity comes knocking. Business insurance is the surest way to protect your business from perils. Here are other reasons why it is important to have your business insured.
To get investors
At some point in your start-up journey, you may need investors to take your business to the next level. While investors are risk takers, they try to control and minimise the risks as much as possible. For this reason you need to have business insurance as it gives your start up legitimacy and shows some level of foresight and risk management which are qualities that will endear you to investors.
It is a legal requirement
While this statement does not apply to all business insurance products, it is certainly true about workers compensation. If anyone is on a salary from your start-up, you must have workers compensation coverage.
To maintain customer loyalty
Whatever business you are in, your customers will need liability coverage. The same will also be required by your landlord should you decide to hire business space.
To keep your business afloat
The entrepreneurial journey is full of risks. You could invest all your savings in a business and lose everything overnight in a fire or some other disaster. Business insurance can help you get back on your feet.
To grow your business
Business insurance, especially where you've sought the help of a good and experienced business insurance broker, gives you peace of mind. This in turn frees your mind to make better decisions for your business as well as take calculated risk as the policy has your back.
To keep your investors happy
Once you have investors in your business, they will do everything in their power to minimise the risks. One of the ways they do that is by requiring your business to take up certain insurance covers. They may also require you to work with a business insurance broker in order to get the best in the industry.
Large organizations can hire risk management experts. As a start-up owner, you don't have that luxury and have the responsibility of risk management. Business Insurance is probably the last thing on your mind but if you are planning on building a lasting business it needs to be a priority. Get business insurance early on so you don't get caught off-guard.
Howdy! I'm Luke and I would like to offer everyone a warm welcome to my blog. I am 24 years old and I work and live in the great city of Perth, Australia. I recently graduated from university and I am just at the beginning of my career in landscape design. For the first time in my life, I have some money so I wanted to make sure I was using the best banking products which would give me the best rate of return when I invested my money. There are so many different types of accounts out there, that it really confused me. Thankfully, my dad put me in touch with a great financial advisor who was able to talk me through the options. I have since visited the same advisor several times to ask about the best way to invest my money.