As a business owner, you deal with risk every day. Whether you’re trying to project your inventory or scaling your business upwards, there are elements of risk everywhere. While you can’t entirely avoid these risks, you can mitigate them — through a commercial insurance policy. A commercial insurance policy protects you against negligence and the costs of litigation, and it’s critical for a business interested in protecting its cash flow and assets.
What is a Commercial Insurance Policy?
What happens if someone gets injured on your property? What happens if someone’s property gets damaged by your equipment? You could be considered liable for property damage or medical expenses, and these could be considerable. Without a commercial insurance policy, you could find your business in trouble, emptying out your cash reserves and becoming unable to maintain your operations.
A commercial insurance policy is designed to protect you from this. Your commercial insurance policy will kick in to protect you from the costs of liability, even if your business is found to be negligent. Medical expenses and property damage can cost hundreds of thousands of dollars — enough to shut down a small business permanently.
What Does Your Commercial Insurance Policy Protect You From?
Commercial insurance doesn’t just protect you from the costs associated with property damage or medical expenses. It also protects you from the costs of litigation itself.
This is an important distinction. Even if you aren’t ultimately found to be liable for something, you can still get sued. Getting sued can lead to substantial legal costs, which aren’t always recoverable even if you aren’t found to be at fault. It’s not just a matter of hoping that your business never causes property damage or injury. Anyone can sue a business at any time.
But commercial insurance also protects you if you are liable or negligent. Slip-and-fall accidents, for instance, can happen anywhere: someone can trip on a wire or a paving stone and get injured on your property. While you may be at fault, it’s not always possible to make sure that a commercial site is completely safe.
If your employees accidentally cause damage to a client’s property, that’s also covered. There are hundreds of accidents that could happen during the course of your work, and it’s likely that your business has a lot to protect. Eventually, most businesses are going to encounter an incident that needs to be handled by their insurance, and their insurance will be able to protect the business from significant financial loss.
When Do You Need a Commercial Insurance Policy?
As your business grows, you may wonder when the right time is to get insurance. The truth is, your business should have insurance from the moment that it has assets it needs to protect. Insurance policies are scaled to your business; if your business has limited assets and has not yet grown its revenue, insurance will be quite affordable.
In fact, insurance is instrumental in protecting your business as it grows: the last thing you want is a single incident to eradicate all of your hard work. Insurance policies work as a safety net and reassurance that you’re able to control your business outcomes and avoid the worst of the potential risks.
Your insurance broker will be able to review your business’s current situation to create a commercial insurance policy that makes sense for it. Commercial insurance is often bundled with automobile insurance, property insurance, and other business-related insurance policies, or purchased as a part of a larger business owner’s package.
What’s the Next Step?
Don’t wait. Your business needs a commercial insurance policy now. Your commercial insurance policy will be tailored to your business, so you only get the coverage you need, and you only pay for the coverage you want. Contact us today at 1.844.929.4768 to learn more.
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