These are tough times for businesses in America, and there has rarely been a more challenging time in which to start a commercial venture. In addition to driving sales wherever possible, a business must also drive down costs and expenditure in order to survive. Some business owners will be tempted to cancel or reduce their insurance coverage and hope for the best. However, such a course of action could result in some devastating–and potentially terminal–consequences for a business. Round Rock business insurance is a necessity for the following reasons:
1. No Coverage for Legal Costs if an Employee Sues
General liability insurance will cover a business against the costs involved in defending and settling legal action as a result of an employee’s or a customer’s injury while on work premises. This form of coverage is the absolute minimum level of insurance a business should have, as legal costs and damages can be prohibitively large for small and medium-sized businesses to cover.
2. No Coverage for the Cost of Property Damage or Loss
Property insurance for business premises will cover the cost of repair and replacement in the event of a fire. Most businesses will simply be unable to operate without a brick-and-mortar base, and being unable to trade will probably mean lost sales. Property insurance covers the building and its contents against fire, theft and a number of named perils, and it may also cover a business’s loss of earnings that result from property damage.
3. No Coverage for the Cost of Absent Staff
If a business does not have worker’s compensation insurance, it may have to cover the cost of hiring a replacement. Having worker’s insurance in place will also ensure that employees are paid when they are out of work due to an injury in the workplace. This type of coverage can also protect a business from legal action as a result of work-based accidents, since it can persuade employees to sign a waiver in exchange for the benefit.
4. No Coverage for Legal Costs Associated with a Malpractice Suit
Professional liability insurance is essential for a business that provides advice or technical expertise. For instance, a financial advisory service could find itself at the wrong end of a lawsuit if the advice and guidance they provide result in losses by a client. Professional liability insurance will cover the legal costs of defense and any damages involved.
5. No Coverage for Vehicles Essential to the Business
If a business uses vehicles as an essential component of its operations, commercial vehicle insurance is a necessity. Such coverage will cover the cost of repairs and replacements in the event of accidents, and it will usually also cover the driver involved as well.
A business owner’s policy (BOP) is often the most convenient and quickest way to secure coverage for all eventualities, and one of our experienced insurance agents will be happy to work with you to find your business the best deal possible. Just give Integrity Network Insurance Group a call at 512-989-6006, and we’ll help you protect your business.