8 Reasons You Shouldn’t Let Your Business Insurance Lapse
Dan Levenson June 15, 2017
Your business insurance is a critical part of your ability to do business. You know that you want to do what’s best for both your company and your customers, but often, you don’t think about business insurance on a daily basis.
For those who work in certain types of industries, especially independent contractors, it’s easy to forget to renew your business insurance. You may have obtained insurance in order to meet contract requirements at the start of a new gig, but perhaps you’ve gotten into the habit of letting your policies expire between projects.
That is, of course, until you need it again and have to scramble to renew.
If you’re in danger of letting your business insurance lapse, consider these key reasons why it’s important to keep your insurance up to date.
1. Thieves often strike when you’re most vulnerable.
You can’t do business without your vital office equipment: your computers, your inventory, and other critical items, for example. Business insurance will ensure that you’re protected in the event that a thief slips in and takes off with the things your business needs in order to continue operation.
2. Natural disasters can’t always be prevented.
You’ve chosen a safe, sturdy building for your business, but that doesn’t mean that you won’t end up in the middle of a flood, a fire, or another natural disaster that proceeds to wreak havoc on your business plan. Don’t find yourself in the middle of a disaster, knowing full well that your business has lost everything.
3. Malpractice is a serious concern.
Mistakes happen on a regular basis, and depending on your business—the medical profession, for example—you may face the possibility of a malpractice suit. Business insurance will help protect you when this happens.
4. You’re responsible for your employees while they’re working for you.
If an employee is hurt or does something that hurts a customer, you’re responsible for it. Is your insurance in place to help take care of that event?
5. Customers are unpredictable.
One customer can walk across a water-covered floor after taking a look at the warning signs without a single problem. Another may slip and fall on a spill that no one had noticed. If a customer is hurt while on your property, you may be liable—and you don’t want to face that liability without insurance!
6. You aren’t perfect.
You may not complete your responsibilities exactly as a customer expected, or you may make a prediction of benefits that ends up being totally false. If a customer chooses to sue you for those mistakes, a simple slip-up could have serious repercussions for your business! Thankfully, business insurance is designed to protect you from those types of events.
7. Your employees aren’t perfect, either.
From an employee who runs their mouth about a competitor and ends up costing your company a suit for defamation to an employee who is slipping items out of the warehouse and selling them out of the back of their truck, you’ll have plenty of opportunities for employees to create serious problems with your finances. If you don’t have business insurance to cover your back, your company will be out the money.
8. People besides you drive company vehicles.
You don’t know whether or not your employees all have auto insurance—and not only that, if they’re driving a company vehicle and have an accident, you may be liable! If you have company vehicles, your business insurance policy should include a section for those vehicles and any potential disasters that occur while your employees are behind the wheel.
If you allow your business insurance to lapse, you won’t be covered in the event of a range of disasters. While many carriers will allow you to immediately resume coverage after making a late payment, they might not be so willing to cover your company if disaster has already struck.
Whether you’re in need of a new business insurance company or you’re realizing the importance of business insurance for the first time, contact us today to learn how we can help your business prepare for a wide range of potential problems.