Business insurance provides many benefits that impact both human and financial capital of a business. It is recommended for all types of businesses including high-tech and low-tech businesses as well as consumer-oriented and service-oriented businesses. Business insurance has many effects on company personnel and performance. Most states in the U.S. require firms to have some form of business insurance, but it can also provide protection that could make or break your business!
Benefits of Business Insurance
Insurance Protection against Consumer Lawsuits and Liabilities
In today’s corporate world, consumers have a lot of power. Business insurance helps to protect employees against external lawsuits from a disgruntled customer. Even if you are very careful, there are many potential problems that could cause a customer to bring a law suit against your company, including product recalls, faulty products, and products that cause illnesses or harm to consumers. Businesses that do not have insurance can suffer devastating consequences of lawsuits.
Employment Practices Liability Insurance
Even companies that diligently comply with federal regulations regarding sexual harassment, unfair hiring practices, and racial discrimination face lawsuits every day. Business insurance covers companies in these situations and can even be structured to cover additional legal costs.
Commercial Property and Casualty Insurance
It is important to insure business properties such as warehouse, products, and any other structures. Companies that specialize in commercial and casualty insurance are experts in assessing the importance of various business assets including equipment, machinery, and inventory.
Health Reform Benefits for Every Business
Health reforms, such as the signing of the Patient Protection and Affordable Care Act (also called Obamacare) by President Barrack Obama, have made business insurance even more important. One of the advantages of business health insurance is that it helps companies to gain tax credits. Small businesses stand to gain up to 35 percent of premium costs thanks to the ACA. Perhaps the most important benefit of business insurance is that it fosters the development of a pool of healthier and productive workforce for all companies in the U.S.
Employee Recruitment, Retention and Wellness
One of the best ways for companies to attract and retain competent personnel is by providing health insurance to employees. Companies that provide health insurance to their employees stand out from competitors who do not provide comprehensive health insurance. Many employees stick with their jobs or employers simply because their health care coverage is affordable and comprehensive.
Good business health insurance that includes wellness features helps employees to eat healthy, exercise regularly, and even reduce alcohol consumption. Comprehensive wellness and preventative care programs reduce the number of days that employees are out of the office as well as reduce the overall cost of health insurance.
Compliance with Financial and Government Requirements
Financial and government agencies impose business insurance requirements. Businesses that comply with the requirements are safe from any legal sanctions or other problems with the government. Business insurance helps businesses to negotiate for better terms when obtaining financing from financial service providers, as well. It is important for companies to get the types and levels of coverage that meet the specifications of financial service providers.