Why Every New Business Must Have The Right Insurance From The Start

Guest Post | Nov 3, 2021

When you start a new business it’s tempting to ignore a few things. Before you grow too big it’s easy to assume you don’t need insurance. Who doesn’t want to save money wherever possible when they’re trying to succeed?

But you should realize it’s essential no matter what financial position you’re in. There are too many things that could go wrong. Here are a couple of huge reasons why every new business must have the right insurance.

You Must Protect Your Employees

Would you feel safe at work if you weren’t insured? Not only will your current employees feel a lot more secure, but insurance will help attract future employees. Health and dental insurance are especially nice perks.

If customers decide to sue your employees, it’s going to be easier to fight to keep their jobs. It’s easy to take bigger risks when they don’t need to err on the side of caution. Protecting your employees is one of your biggest responsibilities.

Less Likely To Lose Your Business

When you’re looking for a commercial insurance broker Canada and America have some great choices. Each one will tell you the biggest reason why you need the right insurance is because you won’t lose your entire business.

What do you think will happen if you need to spend money because you don’t have insurance? It doesn’t matter why you need to spend money. When small businesses don’t have any spare they’re going to fold straight away.

Employees Could Easily Get Hurt

We’ve talked about a business protecting its employees, but businesses need to protect themselves from employees too. Someone could easily get hurt at work and when it’s bad enough they won’t be able to survive without your help.

See:  With Cyberattacks on the Rise, Revolut Explains why Cyber Insurance is Necessary

You can’t be expected to pay worker’s compensation out of your own pocket. Not only will you need to pay benefits but you’ll need to deal with medical bills. Insurance will save you tens of thousands of dollars in some cases.

Your Business Could Go Up In Smoke

Different kinds of natural disasters could strike depending on where you live. Maybe you won’t need to worry about earthquakes or tornados, but floods are becoming more common. The climate is causing all sorts of problems.

An accident could see your business burn to the ground and you would need to replace everything. Vandalism might cause a great deal of damage too. When you have insurance you’ll be protected from things as simple as theft.

Insurance Might Be Required Anyway

In some cases, you might be severely limited if you don’t have the right insurance. When you want to rent an office the landlord will ask you for it. You might be turned away if you don’t have anything to show them.

See:  Synthetic Media and Deepfakes: An insurance industry threat

If you’re trying to raise money to grow even quicker they won’t look at you when you don’t have insurance. Forget about asking banks for a loan. You’re going to run into so many obstacles without adequate insurance.

It’s Worth The Investment

I know spending money on insurance when you’re small is going to reduce things like your marketing budget, but it’s essential and you can’t ignore it.

---

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Source: https://ncfacanada.org/why-every-new-business-must-have-the-right-insurance-from-the-start/