As a small business owner, it’s common to look for different ways to cut operating costs to increase your bottom line. However, out of all the expenses you could potentially save on, insurance shouldn’t be one of them. Without adequate protection, your operations are left vulnerable to a number of risks that could force you to close for good. Insurance is necessary to mitigate losses in the event of a natural disaster, accident, or criminal activity. Here are some of the top reasons you can’t afford to run a small business without coverage.

Why It’s Important to Purchase Insurance for a Small Business

Protect Against Lawsuits 

General liability coverage will protect your small business from third party claims of bodily injury or property damage. The insurance policy will pay for things like medical expenses, lost wages, and repairs. If a lawsuit is filed against the company, it will also cover the legal fees to defend yourself. 

Comply With the Law 

In New Mexico, any business owner with three or more employees is required to carry workers’ compensation insurance. Employers are often held responsible when an employee has an injury or illness while performing their job duties. Workers’ compensation will help pay for the costs associated with these incidents and prevent you from being sued by an employee. Failing to comply with the law can also result in hefty penalties. 

Recover From Significant Loss 

Commercial property insurance is essential if your company operates out of a physical location. If the building where the business is located is damaged, vandalized, or burglarized, your policy will provide the funds to rebuild or make repairs and replace damaged or stolen inventory, furniture, and equipment. 

If you need help determining the kind of coverage that will meet the needs of your small business, contact the insurance agents at Reid Insurance Group Inc in Lovington, NM. With almost 70 years of experience, they know how to accurately assess the risks that companies face and supply entrepreneurs with quality products at affordable rates. Call (575) 396-3645 to request a quote. Visit them online for more information on their coverage options.