5 Reasons your small business cannot afford not to have business insurance

Oct 13, 2017 | Business Insurance, Why you need a broker


Will you feel completely comfortable at sea on a ship without any lifeboats? We guess not! Even though you may not foresee the ship to sink – for you would not be on board if you did! – there is always that slight possibility… Business insurance is like a lifeboat – one of those things you do not need until you really need it! And then it can make the difference between sinking and surviving.

Here are a couple of reasons why you should not try to steer your “ship” on stormy corporate seas without lifeboats on deck:

1. Indemnity incidences

We all make bloopers, but some are costlier than others… In business, we sometimes need to cover the costs of clients for damage, loss or other forms of harm caused by negligence or mistakes in the services or advice we had offered. If there is a law suit, legal costs are also involved. Angry customers may well be the iceberg that damages your ship beyond repair if you do not have the insurance to help woo them back to happiness or fight unfair claims.

2. Asset accidents

Your buildings and other property are the hardware that allows your ship to sail. Mishaps (like damage, theft, fire, breakdowns, etc.) affecting these assets could mean great losses for your business, unless you are insured. Furthermore, if your industry deals with customers’ possessions (e.g. for repairs) then these need to be secured too.

3. Stock situations

If you are in the retail business, your livelihood is dependent on goods. So, what happens if your stock is lost or impaired while stored, refrigerated or in transit? You have to cover your “cargo” for cases of calamity!

4. Profit perils

Sometimes your business voyage comes to a sudden standstill when unforeseen circumstances strike – and this compromises your earnings.  Perhaps you have a machinery breakdown or your premises are damaged in a fire and production is called to a halt. You need more than just compensation for reparation expenses. If you are not covered for loss of profit during the time it takes to get the business back on its feet, you will not be able to cover continued costs and make a living.

5. Employee episodes

Any captain runs into problems with his crew from time to time. Employees can cost you – for example, with claims for injuries on duty or when CCMA hearings are necessary. Be insured to ensure that all hands on deck are covered.

As countless as the waves of the sea, so abundant are the threats that any small business faces. And if one of these waves tosses your boat badly, you surely need assistance in order to continue your voyage.  Without business insurance, you may shipwreck unnecessarily.

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