Small business owners want to do everything in their power to protect their investment. Security systems help deter thieves and hiring talented employees makes the company successful, but neither safeguard against unexpected disasters. Business insurance offers coverage for such risks and hazards, so you can have peace of mind. Here are a few reasons why your new business needs a comprehensive policy.

Why Invest in Business Insurance?

1. Protect Against Property Damage

Even standard small business insurance protects the facility from property damage due to fire, theft, or vandalism. Without a plan, everything inside and outside the building would be your responsibility to cover out-of-pocket.

2. Cover Unexpected Equipment Breakdown

When equipment breaks down, it can interrupt the flow of your business. By insuring these items, you reduce the risk of high repair bills and lower profit while the gear is out of operation.

3. Reduce Income Loss

During periods of natural disaster or forced closure, small business insurance reduces the amount of lost income. The payments often help cover lost wages, rent, mortgages for the facility, and other expenses necessary to keep the doors open.

4. Protect Against Liability Suits

Unfortunately, liability suits, whether due to an injured customer or property damage caused by your services, have become quite common. Standard business insurance policies offer liability coverage to help pay the cost of those lawsuits and provide funds for any settlements reached in court.

5. Look Out for Employees

Offering benefits packages, whether comprehensive or small, shows employees that you care about them. Doing so attracts top-quality applicants for job openings and improves retention. The longer your staff remains, the less training you’ll have to pay for, and the more productive the business can be.

6. May Be Required By Law

Some insurance types, like workers compensation, are required by law if you plan on hiring more than a couple of employees. The policy protects you from lawsuits should they be injured on the job and covers a portion of their lost wages during recovery. Without it, you could be subject to fines.

7. Contracts Often Require Coverage

Mortgage lenders and landlords often require business insurance. If you operate without coverage, you run the risk of losing the building and losing out on job contracts. If the loan or lease requires a policy, put one in place immediately; otherwise, your lender may force-place insurance coverage that only protects their loan interest in your business.

Investing in small business insurance is always a smart move. If you’re looking for a new policy or want to reevaluate your coverage limits, contact the experts at The Dunlap Agency, Inc. in Fairbanks, AK. Their dedicated agents understand the challenges business owners face and will help you find the right coverage for your budget and company size. Learn more about their services online and call (907) 456-5202 today for a free insurance quote.