Why business insurance is important?

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.

 

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 workman’s compensation, are required for all businesses in most states.

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