7 Profitable Reasons Commercial Insurance Is Important
Have you ever driven by an empty building damaged by a fire or storm and wondered what happened to the business? It might have been the victim of being underinsured or uninsured.
A company that fails to purchase the right commercial insurance can find itself struggling to survive or out of business if hit with a fire, theft, or claims from accidents. If you’re a business owner, take a closer look at why commercial insurance is both vital and profitable.
What Is Commercial Insurance?
Starting and building a business involves many risks. Commercial insurance helps you shift some risks from your business to an insurer. Whether it’s damage to a consumer, a theft from your company, or an injury to an employee, commercial insurance is available to help your company withstand the financial blow.
A commercial insurance agency like Garrett Insurance can help you customize the right policy to help you stress less about an unforeseen event and focus more on running your company.
7 Reasons Commercial Insurance Is Essential
You have a range of costs to juggle to keep your company operating and growing. Keeping the cost of insurance in check is among them, but commercial insurance can also prove profitable in a business. Here are seven reasons why:
1. Fulfills a Legal Requirement
Many states require you to carry insurance to open your doors — for good reason. For instance, commercial auto insurance can help protect your company against claims if a work vehicle causes injury or damage from an accident. The insurance may also cover your work vehicle if it is damaged from rolling over.
2. Covers Work-Related Injuries
Federal law requires you to carry worker’s compensation insurance. Most people think about worker’s compensation insurance helping employees who might get injured on the job. However, worker’s compensation also supports business owners. Employees who file a claim and have their claim accepted can’t turn around and sue the employer.
3. Keeps Your Business Operating
Commercial property insurance can help get your business up and running after a theft or damage from a fire or storm or keep it moving forward if a key piece of equipment is damaged. Working with your commercial insurance agent, you also can make sure you buy coverage to provide loss compensation while your company can’t open its doors.
4. Helps Your Customers
A business owner’s policy with general liability insurance may help fend off lawsuits from customers who claim they were harmed or injured by your product. The insurer can compensate your customers on your behalf.
5. Adds Credibility
Customers, vendors, and lenders may feel more confident that you are looking out for their interest if you carry commercial insurance. They may prefer to do business with another company carrying commercial insurance if you fail to buy it.
6. Supports Your Contracts
You may run into suppliers or delivery services who supply and deliver materials to your business or have a need to step foot on your property. Some suppliers and delivery services require you to purchase commercial insurance before entering into a contract.
7. Protects Lenders
If you want to buy or build a new building, a lender likely will require you to have insurance. It might be difficult for you to find the money to start or expand your business if you don’t carry insurance.
Protecting Your Bottom Line With Commercial Insurance
There are countless ways commercial insurance can help your bottom line. A discussion with your commercial insurance agent can help you discover the profitable reasons to purchase insurance for your own business.