Insurance is vital to business. According to Insurance Journal, business insurance claims can cost entrepreneurs approximately $8,000-$50,000 per incident. Without insurance coverage, the impact to your finances can be disastrous.
Here is the list of the costliest insurance claims that you need to know:
1. Customer Injury
For whatever reasons, customers fall and slip inside the premises of your physical store. Their instant response is to sue the company. Defending or litigating your business involves paying the attorney and the court. If the customer’s complaint is found true, the damage claim would cost you around $30,000.
2. Reputational Damage
Violating people’s privacy, slander, and libel claims could cost your business an average of $50,000. Prevent it from happening by maximizing your protection from malicious people who want to challenge your company’s reputation with an insurance that can cushion your finances.
3. Product Liability
Protect yourself from a potential product recall, injuries, or death that may be caused by products that you sell. Make sure that you have a liability insurance to prevent financial fallout that may happen after paying a claim of $35,000 per incident. It will be more beneficial during instances of multiple claims.
4. Burglary and Theft
The cost of thefts and burglaries will affect your business finances if the incidences happen regularly. With insurance protection for your small business, you can claim around $8,000 per incident.
5. Water or Freezing Damage
Winter and harsh weather can bring unexpected water or freezing troubles that would cost your business a lot of money. A single incident can be devastating. An insurance claim of approximately $17,000 per incident can be helpful.
Getting insurance is necessary for every small business. It may be an additional expense but when negative circumstances happen unexpectedly, the protection will keep you doing business as usual.