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There are a multitude of causes for a business to file bankruptcy, some of which may be out of your control. Market conditions may change dramatically, causing bankruptcy. A company may be under financed or there may not be enough resources for marketing. A poor location or inexperience could contribute to a business bankruptcy.
Did you know, however, that business insurance can actually protect your business against some causes of bankruptcy? Here are a few.
Protection Against Liability Claims
Yes, it is true. You can get sued right out of business and it may be easier than you think. A slip and fall, employee’s actions that create an injury and an unsafe product are just the start. In today’s litigious society, people are all too willing to sue a company who they perceive may have deep pockets. The liability portion of a business insurance plan can not only help financially protect you from claims, judgments and settlements but also help pay for legal fees. This could save your business from bankruptcy.
If you own your own facility, business insurance is critical to cover you against storm damage, vandalism and a multitude of other covered calamities. This, too, can keep you in business.
Loss of Income
Even if you have other coverage, loss of income protection can replace your income while you rebuild after a covered event. This can allow you time to recover.
Theft and Embezzlement
One of the biggest causes of bankruptcy for small businesses in particular is theft. That theft may be from outside sources or even from employee theft. These losses can slowly drain resources from a company. This, too, can be protected by business insurance.
This is just the start. Business insurance can help protect your vehicles, your computer security and more.
You likely have enough to worry about with operating your business. Why worry about the things that business insurance can protect you from? We can help.
Contact one of our independent insurance experts to create a business plan specifically for your business. Business insurance can’t totally protect you from all causes of bankruptcy, but it can help with preventing a few. Connect with us to learn more.