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As a business owner, one of your primary concerns is to keep spending low, so you can maximize your profit margin. While there are some expenses you can reduce or cut, business insurance isn’t one of them. In addition to being required under Alabama’s business law regulations, obtaining insurance provides the following benefits.

Why Does My Business Require Insurance?

1. It Protects You From a Lawsuit

Insurance is required under business law regulations to provide protection in the event of a lawsuit. Many businesses get sued, and not having adequate liability insurance can result in a severe financial burden. Without coverage, your unprotected business could fail as a result of a lawsuit filed by an injured customer, an unhappy partner, or a disgruntled employee. Having liability coverage will help you manage legal and court fees as well as any settlement you’re compelled to pay.

2. It Protects Your Employees

Business LawWorker’s compensation insurance is required under business law to help you protect your employees. When you maintain worker’s compensation coverage, you’re ensuring that your employees will be cared for in the event of a workplace accident. Without this coverage, a workplace injury could leave an employee without any way to pay for their medical care or lost wages. This can subject you to a lawsuit and the loss of an employee. 

3. It Protect Your Assets 

Almost all businesses own physical assets, ranging from machinery to raw materials to the products they sell. If you don’t have insurance that covers the cost of replacing these items, a burglary or natural disaster could lead to your business suffering permanent losses. In some cases, an attorney can help you recover those losses, but it’s much better to be prepared with sufficient insurance coverage.

4. It Boosts Your Reputation

The reputation of your business is essential, because it engenders trust among customers and among other companies. By maintaining insurance and posting notices that you’re compliant with the business law mandates that require insurance, you’ll be establishing your business as legitimate and trustworthy. This can make it easier to enter into new business agreements and to obtain funding from lenders.

 

If you have questions about what kind of insurance your business needs, or if you need assistance resolving an insurance-related legal dispute, contact the law offices of Lee, Livingston, Lee, Nichols & Barron, P.C.. This Dothan, AL, law firm has been practicing in the area since 1948. Their familiarity with business, civil, real estate, and employment law can help you make sure your business is fully protected. To schedule a consultation, visit them online or call (334) 792-4156.

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