As an entrepreneur, you have likely structured your business as a limited liability company (LLC) to protect your personal assets. As an additional layer of protection, you should contact an insurance company in Florida to insure your LLC.
Here are five reasons why you should consider insurance for your Florida-based LLC:
1. Business Insurance Protects Your Business Assets
An LLC will protect your personal assets if something should happen involving your business. But your business assets can also be jeopardized by accidents, vandalism, or natural disasters.
For example, if a customer should slip and fall on your premises, you could be liable for any injuries they sustain. Without general liability coverage, you’ll have to cover these expenses using your cash flow, accounts receivable, or even by liquidating assets like supplies or equipment.
2. Business Insurance Protects Your Personal Assets
While an LLC is designed to keep your business assets separate, there are many times when your personal and business finances can mingle.
Some business owners simply fail to open a separate bank account, resulting in their assets being tangled with their business. In other cases, you may be asked to provide a personal guarantee on a business loan.
An insurance policy will protect your personal assets and ensure that the activities of your business won’t impact your family’s finances.
3. Business Insurance Offers Legal Protection
Like it or not, we live in a litigious society. Even if you haven’t made a mistake, you may have customers who slap you with a lawsuit, claiming you’re responsible for something you weren’t.
That means you’ll have to go to court and maybe even hire legal representation. Most Florida business owners can’t afford the time away, let alone the legal fees associated with a lawsuit. Business insurance protects your company in the event of a lawsuit, which can also protect your company against libel or slander.
4. Business Insurance Is Required When You Have Employees
According to the U.S. Small Business Administration, you’re legally required to carry insurance if your business has employees. Florida LLCs can hire employees, and if you do, you’ll be required to carry an insurance policy.
On the plus side, purchasing insurance can give new entrepreneurs the option of hiring staff members down the line. Obtaining insurance today can make it easier to attract new employees in the future.
5. Business Insurance Is Required for Certain Contracts
Finally, certain contracts may require you to have business insurance. For instance, if you’re renting space for your retail store or office, your landlord can ask that you carry business insurance. Similarly, certain kinds of loan agreements may require that your business carry insurance.
This can help you land more contracts. Depending on your industry, clients may feel more comfortable partnering with a business that carries an insurance policy.
The Bottom Line: When to Contact an Insurance Company in Florida
Business insurance can provide invaluable protection for your company. If you want to protect your business and personal assets in the event of an accident, lawsuit, or economic downturn, you should contact a Miami insurance broker as soon as possible.