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Think your Business Doesn’t Need Insurance?


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When we first start a business, be it from the kitchen table or with thousands in backing and an entire team, there are a couple of things you’re always going to need.

You apply for the licenses you need, make sure you have all of the appropriate taxes in order, a business bank account, a business advisor, and an accountant.

So what else could you possibly need?


Many freelancers and small businesses believe that they don’t need insurance – after all, they are so small, who would sue them? Well, from time to time, things happen, and if you aren’t correctly covered, you’ll find yourself paying fines, charges, and more out of your pocket.

It can get expensive quickly. And further to this, if your business and your assets are separated by way of your legal business entity – you can lose everything.

Larger businesses are more likely to have the right insurance for their requirements. You can build specific insurance packages to meet your needs.

For example, most businesses will need some form of liability insurance worker’s insurance. Still, in the case of a pharmaceutical company, they’re also going to need property insurance, errors and omissions, pharmacist malpractice insurance, and more.

No matter the industry you are in, you will need industry specific insurance to meet your needs.

But why is business insurance important? And why do you need it?


In many countries and states, having insurance isn’t just a nice thing; it is a legal requirement. You can often find that there are specific basic insurances that you need. It is essential to check the requirements and budget for them.

If you are found to not have the correct insurances, you will likely face criminal and civil penalties, fines, and charges.

What if?

Insurance is for the what-if moments in your business. What if you were to become too sick to handle your business, but you have contracts that need to be fulfilled? What if your business premises suffers from a fire, a break-in, or a natural disaster?

The right insurance will cover the loss of property and ensure that you are back up and running as soon as possible.

You will also be protected from a loss of income if you have Business Owners Insurance.

Think about all the ‘what if?’ moments that could impact your company, and choose insurance that protects you fully.

If you want to do right by your staff, you can also look to protect your workers’ pay for up to 12 months.

Acts of God

Whether you believe in God or not doesn’t matter when it comes to insurance. Some natural disasters are so big that they are classed as Acts of God.

Tornados, hurricanes, natural fires, and floods usually come under the term – and that can wipe out your entire business in a matter of seconds. If you live somewhere where these occurrences happen more often, then it is vital you have the coverage.

When you are considering policies, look for peril-specific policies and what the all-risk policy covers.

Employee Retention and Attraction

When you have a post out for new staff, you might notice that one of the first questions they ask is about coverage and insurance. Where possible most people would disregard a position (even if it is excellent) for a job that offers benefits.

In this case, insurance can play a positive and vital role in the growth of your company and a happy workforce.

After looking at the initial salary, the second thing that potential employees will look at is what you offer in terms of benefits. Offer packages that include disability, long-term care, health, and life.

Keep in mind that you are more likely to lose well-trained staff at a later date if there are similar roles with other companies that offer better benefits. And that people are more likely to take a less well-paid role for one that provides these insurances.

Customer Protection

We mentioned BOP earlier; however, BOP policies can be some of the most comprehensive options. The Business Owners Policy covers:

  • Personal and advertising injury
  • Product liability
  • Property damage
  • Bodily injury

When you have business premises, it’s not just about what could happen to your or your staff. Assume that one day a customer you have had for years comes in but falls and causes some severe damage to themselves. The cost of their medical care will be extensive, and the insurance you have can cover some of their medical expenses.


Having the right business insurance will mean that potential clients, customers, and contractors are more likely to work with you. They can see that you take the risks in your business seriously and have taken steps to minimize any impact for everyone involved.

Something else that you might notice more of as your business grows (if you are a smaller business) is that insurance might be written into the contracts.

Financial agreements, client agreements, goods, suppliers, and rental agreements typically require the business owner to have all of the insurance to protect these investments.


Perhaps the biggest reason to make sure you have the right insurance in your business is that we like in a litigious society. Everyone is ready to go to court to get what they are owed. In some cases, it is rightfully so, and in other cases not.

Any company of any size can be sued for any number of reasons, and insurance is your first line of protection when it comes to covering the costs. Injured customers or employees, legal fees, medical bills, and more will come directly from the insurance.

And perhaps the second biggest reason after the potential of being sued is that you have peace of mind that no matter what happens, your business is prepared in the best way possible.

Keep in mind it is always worth having a conversation with an insurance specialist in your industry so that you get the best information.

If business protection is on your mind, then this post has some extra tips you can’t miss: How Technology Can Help Protect And Secure Your Business.

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