No matter what industry you’re in, a wide variety of risks come with being a small business owner, and each one has the potential to deter your company’s success. Unfortunately, many operations are forced to close every year because they weren’t properly prepared to face a disaster. As such, you must have adequate insurance to remain financially secure and competitive.

The Importance of Business Insurance 

1. Comply With the Law 

Most state laws require business owners to carry certain types of insurance if they have employees. For example, in Alabama, you must purchase workers’ compensation insurance if you employ five or more people. Having coverage will save from hefty fines and penalties, and it will also limit your civil liability should an employee suffer an on-the-job injury or illness.

2. Recover From Unforeseen Events 

Life is unpredictable and unexpected events happen every day. From fires and flooding to even lightning strikes and burglaries, there are many things that could go wrong and impact your company’s ability to operate. Buying insurance is the only way to prepare for such incidents. Commercial property coverage will help pay to repair or rebuild your business’ physical structure and replace the furniture, inventory, and equipment inside if a disaster occurs.

3. Protect Against Lawsuits 

In this day and age, lawsuits are common. Without insurance, your business is vulnerable to liability claims, which can cost a substantial amount to settle or take to trial. Liability coverage will protect your operation if anyone is injured at your workplace or you damage someone else’s property. Your policy will provide for the other party’s losses and your legal fees if you’re sued. 

4. Boost Your Credibility 

Having insurance will show potential clients, employees, partners, and vendors that you’re a responsible business owner. This will give your company more credibility and increase the likelihood of someone choosing to do business with you over a competitor. They can trust that if something happens, you have the means to cover their losses.

Whether you’re just launching a startup or need to ensure your current business coverage is sufficient, the agents at Absolute Insurance Agency can help point you in the right direction. Offering more than 30 years of combined experience, they’ve assisted countless Foley, AL entrepreneurs in their efforts to secure reliable and affordable insurance. As an independent agency, they provide access to an array of quality products supplied by a network of highly regarded carriers. Call (251) 942-6837 to request a free quote, or visit them online to view a list of their services.