Many small business owners make the mistake of undermining the importance of business insurance. All companies need insurance to protect them from potential lawsuits.
If you haven’t already got a policy, here’s why your small business needs
1. It May Be A Requirement At Tradeshows and Other Events
Networking events like tradeshows, farmers’ markets, and business conferences are crucial for a small business’s success, but in order to attend these events, the organizers often ask businesses to show proof of insurance coverage.
The type and amount of coverage a venue will ask for depends on the nature of the event. For instance, where there is alcohol involved, companies will need to
present alcohol exposure coverage.
Businesses may need insurance for conventions, tradeshows, award ceremonies, company gatherings, job fairs, and speaking engagements.
2. When You’re Signing a
If your small business is ready to move out of your basement and into commercial space, you’ll be asked for proof of insurance.
Lease documents typically require the tenant (you) to have business insurance and commercial general liability, aka CGL insurance. This coverage is needed to protect companies against property damage and personal injury claims, where a plaintiff may hold you responsible.
Companies with small business insurance before signing a commercial lease may have to modify their policies to cover the new location.
3. When You’re Buying Expensive Supplies
People protect their homes, cars, jewelry and other pricey valuables with insurance policies—you’ll need to do the same for the expensive equipment you buy for your business.
Businesses need to think about investing in equipment breakdown insurance, property insurance, and commercial auto insurance as well. You’ll need these policies to protect you in case of theft, vandalism, and other issues that can harm your assets.
4. Your Customers May Ask You For It
Customers often look for a company’s license and insurance policies to determine their credibility. A failure to show proof of insurance can lead to a lack of trust and loss of business. This is most common for service companies such as remodeling contractors, caterers, salons, etc.
Without insurance, a company can be held liable for injuring a customer or damaging another party’s property.
If you have a small business in Long Beach, CA, or nearby communities, get in
touch with Global Guard Insurance Services. As insurance service providers, we work tirelessly to find policies that are tailored to your needs.
Contact us today to learn more about business owner insurance Long Beach.