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Business Insurance: Is it Really Necessary?

Does anyone ever question insurance? Some people pay for insurance, never to actually reap a benefit from it, besides the comforting feeling of financial security. Others pay for insurance and reap all the benefits of the insurance because of a tragic loss, accident, etc. Most people do not question their car or home insurance. But is it common for businesses to have insurance? Do all of them have it? 

 

The answers to those questions are yes and no. It is very common for businesses to have insurance. In fact, most lawyers would strongly advise any business to have some form of insurance. However, some businesses ignore insurance and take on all different scary risks. Why do you ask? Well, maybe people think when they form a limited liability company, corporation, or other business entity that avoids personal liability, they insure their businesses as well. However, that is not the case. The creation of a limited liability company and a corporation do not also provide the business insurance this article refers to. 

 

Because it is often that business owners confuse this concept, JUSTLAW is providing you with a guide to Business Insurance.

 

How do I know if my Business Needs Business Insurance?

 

If you answer yes to any of the following questions, you should get Business Insurance: 

 

  1. Does your business have property (equipment, computers, laptops, inventory, trucks, etc.) that is not easily replaceable without expending a lot of money? 
  2. Do you have an office building? Factory? Land? 
  3. Could your business be sued as a result of an accident (i.e. use of dangerous equipment, slip and falls, regular use of transportation, etc.)

 

Types of Business Insurance:

 

If you answered yes to any of the above questions, you will then have to determine what type of business insurance your business needs. Here are a few types that are provided to businesses: 

 

  1. Liability Insurance 
  2. Property Insurance 
  3. Products Liability Insurance 
  4. Vehicle Insurance 
  5. Identity theft Insurance 
  6. Workers’ Compensation Insurance 
  7. Professional Liability Insurance 

 

Contact an attorney now to determine which of each listed above are right for your business. You may need all of them. You may need only one. However, no matter how many you need, insurance is the safest way to protect your business. 

 

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Utilize JUSTLAW attorneys to get the best advice on how to procure the most affordable and protective business insurance for your business. While you’re at it, check out our Business Membership to receive 24/7, 365 peace of mind for your business. Legal protection for your business and you is our #1 priority. 

 

To learn more about Business Insurance and to determine whether your business needs it, contact us at:

JUSTLAW Client Services, hello@127.0.0.1

This post is not legal advice. It is for general informational purposes only. No reader should rely on this information in any way whatsoever without first seeking legal advice from counsel in the relevant jurisdiction.