Don’t be a contractor without insurance! Whether you’re freelancing to make some extra cash, bootstrapping your dream business, or expanding your company with new employees, you can benefit from business insurance.
In the last five years, the population of people who need business insurance has grown significantly.That’s because it’s easier than ever to be a business owner. Driving for Uber or Lyft qualifies you, as well as completing even a couple of contract jobs. While working for yourself means a lot more freedom, it also exposes you to certain risks unique to business owners.
The good news: insurance can protect you from those risks. Here’s why business insurance is important why not to be a contractor without insurance.
9 Reasons You Need Business Insurance
Insurance can save you from financial catastrophe if something goes wrong, but even when things go right, business insurance can power your growth. Often a contractor without insurance is holding the business back from growing. Specifically, the right policies can help you:
- Sign commercial leases. A lot can go wrong when you own a building. That’s why landlords typically want their tenants to carry General Liability and Property Insurance. In fact, most landlords require proof of insurance before they’ll rent you a commercial space.
- Win more clients. The bigger a client, the more likely they are to have you sign a contract. That contract will often require you to carry Errors & Omissions Insurance. This business insurance is important because if something goes wrong, you can pay for it (so your clients don’t have to). Maintaining active insurance means you’re one step closer to signing your next client.
- Comply with state laws. Businesses that have employees are required to carry Workers’ Compensation Insurance in 49 states (Texas is the exception). Regardless of the laws where you live, it’s smart to invest in coverage that can pay the bills if your employees are injured on the job.
- Handle costly legal bills. Owners of small businesses are often targets for lawsuits. If a visitor has a slip-and-fall accident on your property or you sell a product that hurts someone, you could get sued. The appropriate insurance, such as General Liability Insurance with Product Liability coverage, offers lawsuit protection so legal bills don’t drain your bank account or force your business to close.
- Recover from storm damage. Just as your homeowner’s insurance can pay for repairs and replacements if your home is damaged, Commercial Property Insurance can pay to repair and replace your business equipment and property after windstorms. This policy can also provide coverage for losses related to fire, vandalism, and theft. Most Insureon customers can save money by purchasing Property coverage in a bundle called a Business Owner’s Policy.
- Secure your income. If a fire or other covered Property Insurance event forces your business to close, Business Interruption Insurance can replace your lost income. This little-known gem is usually part of a Business Owner’s Policy and can be the difference between recovery and closure after unexpected events.
- Cover data breach damage. Data breaches and cyberattacks have the potential to affect every business. Cyber Liability Insurance can soften the blow if your business is hit. It helps cover ransom payments to hackers, customer notification costs, and other recovery efforts.
- Cover your business driving. Whether you haul tools between worksites or rent cars when you’re traveling to meet clients, Commercial Auto Insurance (or Hired and Non-Owned Auto Insurance) can cover damage and liability just as your personal auto insurance does. If you have a vehicle titled to your business, Commercial Auto is likely the policy for you. If you or your employees drive personal vehicles for work purposes, Hired & Non-Owned is usually the appropriate choice.
- Save at tax time. Like most business operating expenses, business insurance is tax-deductible.