Every business represents a significant investment in time, money, and energy, all of which can be lost in a major event. Whether you run a large manufacturing facility or a home-based business, a good insurance policy is the best way to protect what you’ve built. Below are a few reasons every entrepreneur needs business insurance.

Why You Should Purchase a Business Insurance Policy

1. Shield Yourself From Lawsuits

If a customer slips and falls in your parking lot or an employee damages a client’s property, the resulting lawsuit can be financially devastating. Even if you prevail in court, the legal fees alone can take a serious toll on your business.

Fortunately, business insurance policies typically include liability coverage that shields you from expensive lawsuits. With this coverage, your insurer will be responsible for compensating the plaintiffs in a lawsuit. Most insurers also provide the legal resources you need to defend yourself against spurious lawsuits.

2. Protect Your Business Assets

Almost every business has physical assets that are vulnerable to theft, vandalism, or damage in a natural disaster. Retail stores may have tens of thousands of dollars in inventory on hand, and manufacturing businesses invest heavily in machinery and equipment. Even home-based freelancers rely on laptops and other gear that may be expensive to replace.

Luckily, the standard business insurance policy will cover the cost of repairing or replacing any assets lost to theft, windstorms, or other covered events. This coverage also applies to damage to your business location and any structures on the property.

3. Close Insurance Gaps

If you run a home-based business, you might assume that homeowners insurance will cover your inventory and equipment. Unfortunately, most policies specifically exclude business assets, so your claim will likely be denied if your computer or supplies are ruined in a fire or extreme weather event.

Personal car insurance policies also exclude accidents that occur while you’re working for your own business. However, business insurance policies close this gap, ensuring all of your assets and activities are protected from the unexpected.

If you're ready to invest in business insurance, contact Russell Insurance Agency in Robertsdale, AL. Since 1998, this team has provided tailored coverage and personal service to business owners throughout Alabama’s Baldwin and Mobile counties, as well as Escambia and Santa Rosa counties in Florida. They work with a variety of insurers, so you can be confident you’ll get the coverage you need at the best rates available. Call (251) 947-3607 to request a free quote.