Why You Can Never Go Without Business Insurance
As a business owner, it is very important for you to carry business insurance at all times. However, there are many company owners that have allowed their insurance, either accidentally or on purpose. Either way, this is not something that you can ever allow to have happen. Here's why:
You Could Lose Investors
If you have investors that you need to keep happy so they will continue to invest in your business and in your dream, you will need to keep the business insurance policy in place at all times. Those who are investing in your company need to know that the money they have tied up in your company is protected. If you are not carrying insurance at all times, or you are not carrying enough of it, the investor could lose out if you are later sued.
You Might Lose Everything In A Lawsuit
While it might be sad to admit, there are criminals out there that will target businesses for their latest scam. For example, they might purposefully trip, fall, and injure themselves in order to receive a check from your insurance company. Then again, there is always the chance that someone could honestly have an accident on your property and you will need your insurance company to help cover the costs of their medical bills and to possibly provide some money for their pain and suffering. In either scenario, if you do not have an active insurance policy in place, you may find that you are going to end up in court with a very large judgement against you. You could end up having to sell off your company and you might not have anything to show for it, other than bills from the attorney that your hired to represent you in court.
You Won't Rest Easy At Night
There is no telling when the unthinkable might happen. Even with plenty of precautions taken, you could find that your business was damaged, or completely destroyed, from a fire or some other natural disaster. With a quality insurance policy in place, you will be able to rebuild and replace the items that were destroyed. Without that policy, you would have to pay for everything out of pocket, which may or may not be something that you are going to be able to do at that time.
If you are having trouble keeping up with the insurance premiums, you could always shop around for a better rate. Changing insurance companies is always better than allowing your coverage to lapse.