With all the expenses involved in creating a start-up business including the cost of supply, rent, and the expenses on basic utilities, insurance may be the last thing that an SME owner may consider. Most of the local business owner thinks that owning insurance is an unnecessary expense especially if you are trying to keep up with the everyday expenses needed to maintain the function of your business. But before you decided to cancel the idea of getting the insurance, you need to know about the things that you are missing.
The Advantages of Having Business Insurance for SME
Insurance is not a luxury or an unnecessary expense. It will safeguard you to the risk and guarantee that your business will continue on its original function even during the times of disasters. The insurance agency will be handling the expenses during a vehicular accident of a company vehicle or the damages in the event that your business suffers a bursting pipe. We all heard about the chilling horror stories that SME owners had to face which can be prevented with the help of the business insurance.
Protect you From Company’s Liability
One of the most prevalent claims faced by SME would be the personal injury complaint. In the absence of the insurance, the company will be solely responsible for providing financial aid to his employees in the event that he acquired injury or harm during work hours. You will also need to face other law charges since liability policy is generally required by the law. So essentially, you are being disobedient with the law. With the liability insurance, you are transferring the expenses to the insurance agency.
Protect You against Theft
SME are prone to thefts due to their minimum amount of security. It is very costly to invest in state of the art security equipment, and it will just add to your monthly utility bills. Even the data stored on their online database is prone to hacker since they cannot afford an added amount of security for their CRM website. Last December 2015, Mozy has already advice their local business clients about the risk of getting burglarised. Even your gadget contains data that can pose a risk to your security. By acquiring insurance for your small business, you are safeguarding yourself from the effects including the long-term effect of theft of ramification. It is so essential for you to be protected against data theft and burglary, during this event, you will not only lose profit and resources, but there is a tendency that you will also lose the trust of the consumers and your credibility to run a business.
Finally, the insurance for the small businesses will tell if the company will survive during unexpected times. SME should invest in insurance since this factor is also desirable for large companies and government agencies. So if you are eyeing for a long term, insurance will definitely be your partner. It doesn’t have to be costly; the amount of your insurance will rely on the nature of your business.
|