5 Reasons Why Businesses Must Have an Insurance
                     5 Reasons Why Businesses Must 
Have an Insurance
EVERY BUSINESS FACES RISKS, AND YOU NEED TO ENSURE THAT YOUR BUSINESS IS 
PROTECTED FROM POTENTIAL THREATS. BUSINESS INSURANCE POLICIES ARE MEANT TO 
MITIGATE RISK AND PROTECT YOUR BUSINESS AS WELL AS ITS ASSETS IN THE EVENT OF A 
CATASTROPHE. THE RIGHT INSURANCE POLICY CAN SAVE YOUR BUSINESS IN CASE OF AN 
EMERGENCY, NATURAL DISASTER, OR OTHER UNFORESEEN CIRCUMSTANCES. HERE ARE 
SOME KEY REASONS WHY YOU NEED TO INVEST IN BUSINESS INSURANCE POLICIES TO 
SAFEGUARD YOUR GROWING BUSINESS. IF YOU OWN OR OPERATE AN INDEPENDENT 
SMALL BUSINESS, AT SOME POINT YOU’LL LIKELY HAVE TO MAKE A DECISION REGARDING 
BUYING BUSINESS INSURANCE. THE IMPORTANCE OF VARIOUS TYPES OF COVERAGE MAY 
NOT BE OBVIOUS UNTIL SOMETHING GOES WRONG. YOU DON’T WANT TO END UP PAYING 
MORE THAN NECESSARY FOR YOUR POLICY OR FAIL TO PURCHASE CRUCIAL COMPONENTS 
THAT COULD LEAVE YOU WITH NO SECOND CHANCES SHOULD SOMETHING GO AWRY WITH 
YOUR SMALL BUSINESS VENTURE.
FRAUD AND EMPLOYEE 
DISHONESTY
BUSINESS OWNERS NEED TO BE AWARE OF THE VARIOUS TYPES OF FRAUD THAT OCCUR 
IN THE WORKPLACE. WHILE SOME FORMS OF EMPLOYEE DISHONESTY ARE EASY TO SPOT, 
OTHERS MAY BE HARDER TO DETECT. EMPLOYEES MAY STEAL CASH OR ITEMS FROM THE 
COMPANY OR CREATE FRAUDULENT TRANSACTIONS THAT COULD RESULT IN SIGNIFICANT 
LOSSES TO YOUR BUSINESS. SOME OF THE MOST COMMON TYPES OF FRAUD INCLUDE 
EMBEZZLEMENT, IDENTITY THEFT, AND INSURANCE FRAUD. YOU CAN PROTECT YOUR 
BUSINESS FROM THESE THREATS BY INVESTING IN COVERAGE THAT COVERS FRAUD. 
FRAUD COVERAGE INCLUDES THE COST ASSOCIATED WITH PURSUING LEGAL ACTION WITH 
THE GOAL OF RECOVERING LOSSES RELATED TO FRAUD. IT ALSO COVERS THE COST OF 
REPAYING CUSTOMERS WHO HAVE BEEN DEFRAUDED BY EMPLOYEES.
ENSURE CONTINUITY OF BUSINESS 
OPERATIONS
THERE ARE MANY DIFFERENT TYPES OF BUSINESS INSURANCE POLICIES THAT COVER THE 
COST OF CLOSING DOWN TEMPORARILY OR COMPLETELY IN THE EVENT OF A 
CATASTROPHIC EVENT. IF THERE’S A FIRE IN YOUR BUILDING AND IT CAUSES MAJOR 
DAMAGE, YOUR BUSINESS MIGHT NEED TO CLOSE DOWN FOR REPAIRS. OR PERHAPS 
YOUR BUILDING FLOODS, CAUSING DAMAGE AND DISRUPTION TO YOUR OPERATIONS. 
DEPENDING ON THE EXTENT OF THE DAMAGE, IT COULD TAKE MONTHS OR EVEN LONGER 
TO REBUILD. IN THE MEANTIME, YOU’LL NEED TO PAY FOR COSTLY RENT ON ANOTHER 
LOCATION. BUSINESS INTERRUPTION INSURANCE CAN HELP YOU GET BACK ON YOUR FEET 
BY COVERING THE COST OF LOST REVENUE WHILE YOU’RE UNABLE TO OPERATE IN YOUR 
ORIGINAL LOCATION. IT CAN ALSO HELP YOU PAY FOR TEMPORARY HOUSING AND OTHER 
EXPENSES INCURRED WHILE YOUR BUILDING IS UNDER CONSTRUCTION.
LIABILITY PROTECTION
LIABILITY INSURANCE COVERS THE COSTS ASSOCIATED WITH DEFENDING A LAWSUIT OR 
PAYING DAMAGES TO A THIRD PARTY IF YOUR COMPANY IS HELD LIABLE FOR AN INJURY OR 
DAMAGE CAUSED BY AN EMPLOYEE OR A CUSTOMER. LIABILITY INSURANCE IS 
PARTICULARLY IMPORTANT FOR SMALL BUSINESSES THAT OPERATE WITH A HIGH DEGREE 
OF RISK, INCLUDING CONTRACTORS, HOSPITALITY BUSINESSES, AND PROPERTY 
MANAGEMENT FIRMS. BUSINESS OWNERS NEED TO BE MINDFUL OF THE TYPES OF 
ACTIVITIES THAT COULD TRIGGER A LIABILITY CLAIM AND THE POTENTIAL FOR SIGNIFICANT 
COSTS IF A CUSTOMER OR THIRD PARTY IS INJURED ON YOUR PROPERTY OR BY YOUR 
EMPLOYEES. WHILE PROPERTY DAMAGE IS OFTEN COVERED BY YOUR GENERAL LIABILITY 
COVERAGE, BODILY INJURY AND MEDICAL COSTS ARE NOT. LIABILITY INSURANCE CAN HELP 
PROTECT YOUR GROWING BUSINESS FROM THE FINANCIAL IMPACT OF A MAJOR LIABILITY 
CLAIM.
PROTECTION AGAINST NATURAL 
DISASTERS
YOU MAY NOT BE ABLE TO PREDICT WHEN A NATURAL DISASTER WILL OCCUR. 
FLOODS, FIRES, AND HURRICANES CAN WREAK HAVOC ON YOUR BUSINESS AND LEAVE 
YOU STRUGGLING TO RECOVER AFTER THE EVENT HAS PASSED. IF YOUR BUSINESS IS 
LOCATED IN A HIGHLY VULNERABLE AREA, YOU SHOULD CONSIDER INVESTING IN 
COVERAGE THAT PROTECTS YOUR BUSINESS IN THE EVENT OF A NATURAL DISASTER. 
FLOOD INSURANCE PROTECTS YOUR BUSINESS AGAINST WATER DAMAGE BY COVERING 
THE COST OF REPAIRS IF YOUR BUILDING IS DAMAGED BY FLOODWATERS. BUSINESS 
OWNERS WHO HAVE INADEQUATE COVERAGE OR DON’T HAVE ANY FLOOD INSURANCE 
AT ALL MAY FACE A STEEP PRICE FOR REPAIRS THAT MAY BE OUT OF THEIR BUDGET 
RANGE. IF YOUR BUILDING IS LOCATED IN AN AREA PRONE TO WILDFIRES, YOU MAY 
NEED TO CONSIDER WILDFIRE INSURANCE TO PROTECT YOUR BUSINESS.
ADD VALUE TO THE COMPANY
THE RIGHT BUSINESS INSURANCE POLICIES CAN ADD SIGNIFICANT VALUE TO YOUR 
GROWING BUSINESS. YOU MAY BE ABLE TO GET A DISCOUNTED RATE ON YOUR 
PREMIUM IF YOU ARE ABLE TO FIND A BUSINESS INSURANCE BROKER WHO 
SPECIALIZES IN SERVING SMALL BUSINESSES. IN ADDITION, SOME 
BUSINESS INSURANCE PROVIDERS OFFER SPECIAL DISCOUNTS IF YOU ARE ABLE TO 
DEMONSTRATE THAT YOUR BUSINESS IS WELL-PREPARED FOR POTENTIAL RISKS OR 
HAZARDS. A GOOD BUSINESS INSURANCE POLICY CAN HELP YOU AVOID COSTLY 
MISTAKES, SUCH AS FAILING TO PURCHASE A FIRE OR THEFT POLICY THAT WOULD 
HAVE COVERED YOUR LOSSES IF A WILDFIRE HAD THREATENED YOUR BUILDING.
CONCLUSION
INSURANCE IS AN EXCELLENT RISK MANAGEMENT TOOL. IT IS A SMALL INVESTMENT 
THAT CAN PROTECT YOUR BUSINESS FROM UNFORESEEN DANGERS THAT MAY RESULT 
IN FINANCIAL LOSS. NO MATTER WHAT TYPE OF BUSINESS YOU RUN, IT'S IMPORTANT 
TO HAVE THE PROPER INSURANCE COVERAGE IN PLACE. THIS WILL HELP TO PROTECT 
YOUR COMPANY FROM RISK, AS WELL AS INCREASE ITS OVERALL VALUE.
PLEASE VISIT HERE FOR MORE INFORMATION: 
HTTPS://WWW.BONANOINSURANCE.COM/BUSINESS-INSURANCE/