Generally, business insurance is beneficial to both human and financial capital of the business. it is, therefore, imperative that all types of business have it. It is recommended for low tech and high tech businesses, as well as consumer and service oriented businesses.
As a matter of fact, it often affects the company’s performance and personnel. Most US states require that every firm has some form of business insurance. Besides, business insurance provides protection that could make your business succeed or fail. But is business insurance worth the cost? Here are the benefits.
Compliance with the government and financial requirements
Generally it is the government and the financial agencies that outline business insurance requirements. Firms that adhere to the requirements are safe from any penalty or problem with the government. Business insurance, therefore, helps the business to agree on better terms when looking for finances from the government or financial service providers. These companies should get the types and levels of coverage that meet the requirements of these providers.
Protection against consumers’ liabilities and lawsuits
In today’s world, consumers are very powerful. This insurance, therefore, helps businesses with cases that involve them with the consumers. Remember, regardless of how careful you are, there are problems that could involve you with the consumer. These may include product recalls, bad products and products that might cause harm or injuries to consumers. In case, a business does not have insurance they can suffer serious consequences emanating from lawsuits.
Employment practices liabilities
Even the most well-managed companies often face lawsuits. They may comply with federal regulations concerning racial discrimination, sexual harassment, unfair hiring practices but there are minor issues that can still make them be taken to court. Luckily, most companies are covered by business insurance and they can even be redesigned so that they can cover additional legal costs.
Employee recruitment and retention wellness
One of the best ways of attracting good workers is by providing medical insurance coverage. Companies that do this are always ahead of their competitors who do not provide the same. Currently, most employees maintain their jobs because there is a health insurance provided. A good business health insurance includes features such as eating healthily, avoiding over consumption of alcohol among others. This will reduce the overall cost of health care and the number of days that workers miss work.
Health reform benefits for every business
Health reforms such as the signing of ObamaCare have made this insurance even more important. Among the benefits of business health insurance is that most firms have been able to gain tax credits. For instance, through this, small businesses can gain up to 35% of the of the premium insurance costs. It therefore, fosters the development a group of productive, healthy individuals in the country
Casualty insurance and commercial property
Essentially, you should insure business property such as products warehouse and other structures. Companies that are experts in casualty and commercial insurance know how to assess the importance of various business assets including inventory, machinery and equipment.
In sum, the answer to the question ‘Is business insurance worth the cost’ is yes.