Do small businesses need worker’s compensation and business auto insurance? This blog debunks the 5 most common myths about running a small business.
If you are a small business owner, there might be times when you have wondered if your business needs business insurance. But in reality, no matter what size business you have, no matter how many people work in it, business insurances are important to keep your business safe.
You might have heard a lot of myths about insurance for small businesses; we are here to debunk those myths for you so that you make sure to get your business insurance done with a good MD insurance company.
Myth 01: Small businesses don’t need workers’ compensation
Many people think that if you have a smaller business with fewer employees that you don’t need workers’ compensation.
It is important to remember that workers’ compensation is required for legal compliance. Legally, if your business has more than one employee, workers’ compensation is unavoidable. Even if your business has only one employee, just to be safe, you should be prepared with workers’ compensation. Even in safer job roles like a desk job, you will still be responsible for any injuries that your employee might get while at work. Big or small, in any business, workers’ compensation can save the business, the workers, and the clients.
Having workers’ compensation will make sure that in case of an injury, you and your employees are covered. The situation can easily be handled by your insurance company for your employees, saving your time and your relationship with them.
Myth 02: Business insurances are expensive and thus not for small businesses
With limitations on budget, many small business owners think that business insurances are expensive. Thus, naturally, they avoid business insurances to cut down on the costs, exposing their business to losses and damages.
In reality, you’d be exposing your business to potential dangers by cutting down on business insurance which can cost you far more money than business insurance itself. Be it a legal claim on your business or an injured worker, business insurances make sure that you can afford to pay for it all without letting the disasters affect the finances.
Myth 03: Remote employees don’t need business insurance
Many small businesses nowadays have employees that work remotely; from the owner to employees, it is much more common to have employees who work from their own homes. And one of the most common misconceptions is that remotely working employees do not need business insurance. However, this myth exposes a lot of small businesses to risk.
No matter how small or big the business is, no matter where the business is being operated from, there can be a business disaster at any time. Since your home insurance would not cover your business-related damages. For example; damage to any equipment or documents, you will have to pay for it all from your accounts. Thus, having business insurance even for remote working conditions is an ideal choice to make.
Myth 04: Small businesses and companies don’t need cyber liabilities
Cyber-attacks have been increasing in the last decade. These attacks are so common that it has become one of the biggest concerns; big enough to have insurance plans cover for them.
A common misconception that small businesses don’t need cyber liabilities, but that is again just exposing your own company and all the resources that went into it to something potentially dangerous. So, don’t neglect cyber liability insurance as it can save you, your employees’ and your clients in case data is stolen.
Myth 05: Small businesses don’t need business auto insurance
Many small business owners believe that they don’t need business auto insurance if their employees are driving their cars or if they are using their car for business purposes.
In reality, personal auto insurances don’t cover damages that happen due to business reasons. And if by chance, your employee damages their car doing your work, they would expect you to pay for their loss as their insurance won’t cover it. In such a scenario, you would be forced to pay it all from your pocket. So, it is better to not take any chances and get business car insurance done for your small business.
So, what can we take from Debunking these myths;
Underestimating the need for business insurance for small businesses is easy because of limitations on budget’s. However, not getting insurance can be more costly than being covered in the first place. Unlike bigger businesses that can take a blow or two, small businesses can be completely sabotaged by even the smallest financial blow; business insurance prevents that from happening.