Operating a business comes with inherent risks. After all, unexpected things can happen to your company. For example, one of your employees can get injured, or you can go bankrupt. Another possibility is having your establishment destroyed by natural disasters like thunderstorms or earthquakes.

No matter what it may be in the future, it's better if you are prepared to handle these situations. After all, you want your hard work to be worthwhile. One way to ensure you are protected is by applying for business insurance covering all these potential damages.

If you're still on the fence about having your business insured, here's why you should apply for it:

1. It’s the Law

Small businesses are an essential component of the economy and must have the same protections as larger businesses in case of financial damages. That’s why entrepreneurs need to apply for a business insurance plan to cover them in case of a disaster or other financial emergency.

In fact, according to the Small Business Administration (SBA), business owners must see that their businesses are insured against loss. This is because a small business is more vulnerable to financial damages in the event of a natural disaster, theft, or other unforeseen events. However, failure to carry out this task can lead to more fines and criminal penalties.

2. Maintains Business up and Running

Running a small business is hard work. Not only do you have to worry about the day-to-day operations, but you also have to think about the future of your business. After all, staying afloat in the market is one thing you should prioritize as an entrepreneur.

Applying for insurance can help maintain your spot in the industry by ensuring your business can resume operations after an unforeseen event. For example, if a natural disaster damages your business, insurance can help you deal with the costs of repairing or rebuilding your business.

3. Helps with Tax Purposes

Most entrepreneurs dread dealing with taxes as it entails a lot of paperwork and can be confusing. However, having insurance for your small business can help you qualify for certain tax deductions. This is because you get to deduct health, dental, and vision insurance premiums for yourself and your employees, along with other deductions. This can help your business save money on its taxes.

For example, if you have property damage insurance, you can deduct the premiums you pay for the policy from your business income. This can help reduce your tax liability and make it easier for you to manage your finances.

4. Offers Protection against Lawsuits

Small businesses are at risk of several types of lawsuits. Insurance can shield you from the financial repercussions, whether your company is sued as a result of an accident on your premises or an error made by one of your workers. 

Aside from that, business insurance can help cover the costs of any legal fees and damages that your business may be liable for, protecting your business from going bankrupt if you are sued. Furthermore, this aids in avoiding costly legal battles, which can drain your time and resources.

Final Thoughts

Businesses of all sizes need insurance to protect themselves from various risks. After all, insurance is an important part of any business, and it should be considered a top priority. By protecting your business with insurance, you can rest assured that you are doing everything possible to safeguard your future.

The Oakley Agency is a reliable business insurance agency in Alabama that helps entrepreneurs protect their businesses with the right coverage. Get in touch with us today for more information!