If you are planning to set up a small business in the creative industries, it is vital that you consider taking out insurance before you open your doors. Most creative businesses are small and independently run companies that could be bankrupted by liability claims or legal complaints made against them. Then, every entrepreneur needs to find the right type of insurance policy in order for their business to thrive now and in the future.
Business insurance may be a legal requirement for your creative business depending on the state within which your business operates. For instance, although most creative businesses operate from home offices or are run by sole traders, you must take out insurance if you hire employees.
However, you should still consider taking out insurance to protect your business even if you are not legally obligated to. If you are looking to buy insurance for your company, you can find out business insurance cost at Next Insurance, who offer customized policies to suit the needs of your small business by allowing you to pay only for the coverage that you need.
Stops Damage from Claims
As a creative entrepreneur, clients could make potential claims against your business, which could damage your assets. These claims could be for personal injuries or professional errors, such as contract infringements or data breaches. In fact, over 100 million businesses in the US are sued every year, and this could force your business to close if you do not take measures to protect yourself against legal action.
Although it can be difficult to know what to do if you are sued, if you have taken out general and public liability insurance, you will be able to get the coverage that you need to keep your business running throughout the lawsuit.
For Health and Safety
Personal injuries are incredibly common in the workplace, with there being over 5,100 fatal workplace injuries in 2017. If your employees sustain an injury, insurance can give them the compensation that they need for medical bills and sick leave.
Although liability insurance cannot prevent employees from sustaining injuries on your premises, taking out insurance can improve your health and safety policy. It can also ensure that your employees feel more comfortable when they are performing tasks in potentially dangerous working conditions, like when they are operating machinery. Then, both your clients and your employees are more likely to support your business if you have taken out insurance because you will be viewed as a reputable and trustworthy firm.
Preparation for Emergencies
From natural disasters to crime, even if you work from home, you should be aware that emergencies can happen at any time. To protect your business from crime and unexpected occurrences, such as a fire, you should take out insurance that can give you the compensation that you need to get their business back up and running. As an entrepreneur, this can also help you to retain your company’s assets in the face of difficult circumstances.