Running a business takes a lot of time, money, and hard work. There is so much involved and many new business expenses to consider. You may be starting to pay for these expenses and may be wondering if some of them are even necessary. One purchase that most businesses choose to make is business insurance. There are different levels and types of coverage that can help protect your business and your investment. But what happens if you choose to ignore this need? Keep reading to see what happens if you don't buy business insurance.
You May Be Breaking the Law
Certain insurance coverage may be required by your state or local area. For example, most states in the US require that businesses carry workers' compensation insurance. If you choose not to follow the laws, you may risk expensive fines and you may even be told that you can no longer operate your business.
You May Be Without a Place to Run Your Business
If something serious happens to your place of work, like a fire, a serious flood, or a natural disaster, you may be without a building to work in. Without the right insurance in place, you may find that you're unable to afford repairs or are unable to buy a new building to operate in.
You May Not Be Able to Protect Your Employees
Workers' compensation insurance is just one business insurance expense that should not be ignored. If you don't invest in this coverage, you may not be able to protect your employees when they need it most. This kind of insurance can cover lost wages while an employee is out of work and can pay for medical care. Without it, an injured employee will be put in a very difficult spot.
You May Lose All Your Money
When you don't choose to protect your business with business insurance, it can make for a costly mistake. You may have to pay for damage, injuries, or mistakes out of your own pocket. For many businesses, this can be devastating. You may lose all your money and have to file for bankruptcy.
These are some examples of what can happen when you don't purchase business insurance. While it may seem like some of the fees are too high or that it's unnecessary, you never know what will happen in the future. Talk to a business insurance agent to make sure that you have protection so that you don't lose your business.
To learn more, contact a resource like Welsh Insurance Agency Inc.