Even when things go right, running a business is hard. It can be even more challenging with common financial losses like property damage, business interruption, theft, and liability. Commercial insurance brokers are crucial for new entrepreneurs and established business owners alike.
Although insurance costs might seem like a hassle, the right plan can save owners’ businesses and wallets in the long run. Today we’ll cover three ways commercial insurance can save companies money and protect their livelihoods for years to come.
Suing businesses is a sad reality in today’s world. To give an idea, experts estimate that between 36% and 53% of small businesses are involved in at least one litigation per year. On top of that, 90% of all companies are in litigation at a given time.
By definition, liability insurance protects from charges mainly resulting from personal and property damage. Liability insurance is helpful since it caps how much a firm pays if it is at fault in these situations. This liability coverage will handle attorney fees, settlements, and judgments, which can financially cripple small businesses. It also shows the public that a company is responsible, which can boost their income as well.
Many companies suffer over something as simple as an accident, broken contract, or complaints from an employee. Legal aid is often financially draining even if a firm wins a court case. In this event, liability insurance eliminates the worry and financial burden if these problems arise.
Safety During Disasters
Whether it’s tornados, floods, or ice storms, Kansas City has experienced its fair share of Mother Nature’s anger. The good news is that the financial burden these disasters cause can be optional.
Natural disasters can quickly halt large businesses, and problems are often more severe for smaller firms that usually only have one location. It is estimated that more than 25% of companies never reopen after suffering a natural disaster.
The good news is that the average commercial insurance policy protects against damages from rain, wind, and hail. It can also be a financial lifeline during a shutdown. However, remember that these policies are for real property only and do not cover cars and other vehicles.
Security Against Crime
Just this month, 75% of employees admitted to stealing from employers at least once. Even more concerning is the fact that employee theft is rising by 15% annually.
This is to say nothing of forgery, robbery, and electronic crime. Altogether, businesses lose about $50 billion to these crimes yearly, most of which are in finance, insurance, and healthcare.
Sadly, bad actors find their way through even the most robust security measures. This violates a business’ sense of trust and can damage their reputations beyond repair. Moreover, many property insurance plans don’t cover this type of crime.
Crime coverage with a trusted commercial insurance broker is thus essential with today’s technology. It covers computer fraud, employee dishonesty, theft of money and securities, forgery, alteration, burglary, robbery, and computer fraud.
Simply put, it costs more not to have crime coverage.
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