It can take years to build a successful business, so you don't want one mishap to put your company in trouble. As such, all entrepreneurs must make sure they have adequate insurance to protect every aspect of their operations. If you have plans to launch or expand a brand, here are some of the biggest reasons you need business insurance.

How Can Business Insurance Safeguard Your Company?

1. Keeps You Compliant

Similar to most other states, North Carolina requires businesses to have workers’ compensation insurance if they hire three or more employees. This coverage is used to cover damages related to on-the-job injuries and prevents the risk of employee lawsuits. You must also have commercial auto insurance if you use any vehicles for business purposes. Failure to maintain these coverages can result in steep fines, as well as criminal charges.

2. Protects Your Property

Commercial policies will pay for the replacement or repair of company property if it's damaged by a named peril, such as fire, theft, or vandalism. While this coverage is often used to address issues with physical buildings, it also applies to inventory, equipment, and other property used by the business.

3. Inhibits Interruptions to Income

Interruption insurance is commonly added to commercial policies to protect against losses that may occur if you're unable to operate and generate income. This form of coverage provides funds to replace lost income so you can continue to pay employees and vendors, as well as satisfy other operational costs.

4. Limits Liability Concerns

If a customer or client is injured on your business property, you may be held liable for any of the damages, such as required medical care. Without coverage, the costs of this liability could cause bankruptcy. However, with commercial liability insurance, your provider will pay for injury claims, as well as cover related legal expenses.

5. Minimizes Contract Risks

If your company can’t fulfill the expectation of a contract, you could face legal consequences and monetary losses. However, if your business insurance policy includes surety bond coverage, you’ll be able to compensate clients who experience losses due to unmet contractual obligations. And, since this type of insurance reduces the financial risks your company presents, having it may help you attract more clients.

Whether you run a small shop or operate a regional franchise, IGO Insurance has impressive solutions to reduce many business risks. Known for their customized assistance, this independent insurance agency in Raleigh, NC, will develop solid plans that comfortably cover the needs of your company. With access to over 15 recognized carriers, this provider will also introduce you to several policy options so you can choose the best plan for you. To learn more about their products, visit them online. For a personalized insurance quote, call (919) 782-1560.