Top Reasons To Make Sure Your Business Is Well Insured
A business should be a separate entity from you as a person. That is why it advised to create a business a Limited Liability Corporation (LLC) so as to protect your personal assets in the case of bankruptcy or litigation. An LLC will provide the protection and will also help in avoiding double taxation of income which would have been possible if it was a C-corporation. There are several reasons why you need small business insurance even if your business is an LLC. Here are three reasons why your business needs insurance.
Protecting Business Assets
The purpose of an LLC is to protect your personal assets in case something happens with the business. This means you can’t lose your house or any other asset in case the business is sued. The same can’t be said of your business assets and there are several situations where you could be at risk of losing everything. The business could be sued should someone slip and sustain an injury in the shop if they don’t have general liability insurance in place. While accidents are rare, it is important to be prepared just in case they happen.
Not having insurance will mean liquidation of the business assets in order to pay for the damages if there is no cash available. An employee could do a mistake that causes harm to someone. This will leave your business vulnerable to litigation if you don’t have general liability insurance in place.
Risk of Losing Personal Assets
You’re never completely safe against losing personal assets even if your business is an LLC. You may not have kept the business and personal finances separate which leaves a loophole for litigation. You may have also guaranteed a business loan and there is very little you can do in such a situation because your personal finances are already involved. There are also not a lot of options when you’re involved in crime and there is a risk you could lose your home and personal property in the process.
There are Costs Whichever Case
You will incur costs when defending yourself against a suit even if you’re not liable. As a business, you could be sued for just about anything and it is always good to be prepared. You will have to hire a lawyer to defend you which can be costly. That is why you need business insurance. General liability insurance will protect you against things like property damage and bodily injury to a third party. Going beyond that, you will also need protection against damaging your client’s property and also slander and libel.
Professional Liability Insurance
Professional Liability Insurance will provide protection from something you should have but didn’t do. It will protect you against the damages or harm that might have been caused while working on the client’s project. It should also be able to provide protection against the mistakes made by the employees or subcontractors that you hired. For more information, you can check out https://www.hightowerrisk.com/
Hightower Risk is a premier online provider of commercial insurance for small and mid sized companies throughout the United States. To learn more about our services, call 800-207-2150.
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