When you run a business, you assume responsibility for the well-being of a range of people, from employees to customers. Your business activities have the potential to affect these stakeholders in serious and costly ways, and business insurance protects you financially from some of these consequences.
It’s important to have business insurance because the financial consequences of a potential mishap could easily wipe out the assets of a small business. Insurance provides protection in case customers or passersby experience harm at the hands of your company, or if your company is harmed by an incident such as a fire, etc.
In addition to protecting yourself, it’s also important to have business insurance so you can protect others. If you own a food business and a customer becomes ill after eating one of your products or if you own a delivery business and one of your vehicles hits a pedestrian, you need to be able to pay for the damage you’ve caused.
It’s also important to have business insurance because such insurance can be a requirement for certain types of business activities. Some contracts require in their terms that you be insured, and some types of insurance, such as worker’s compensation, are required for all businesses in most states.
Most people/ businesses don’t take time to review exposures, options, or their current economic and social condition before making their insurance purchase. Taking stock of your personal and business finances as well as understanding the risks you face often change, as well as do the options to mitigate potential risks.
Things to consider while reviewing insurance policies:
Manage changes to the business: Did you grow, did you shrink, more employees, new locations, new products, mergers, acquisitions, divestures? So many potential variables to discuss.
Ensure appropriate coverage: What changes are happening in your industry, employees, world at large? What potential risk impacts are you prepared for, which are you not?
New available option: As there are changes in your business world, Insurance companies are always making changes to their policy coverages too. Reviewing what is current in the marketplace may show options you are unaware of, provide new ideas, etc.
Your Risk Mitigation Professionals at Oxford Risk are always available for a consultation.