TRUiC Details The Importance of Insurance For Pressure Washing Businesses
There are a plethora of risks associated with the pressure washing business, perhaps more than the amount the average business would be exposed to. This makes it even more important for pressure washing business insurance to ensure that they are adequately protected since the costs of not being so are severe. This article will outline in more detail the reasons why it is important for businesses to have appropriate insurance. Before exploring the popular policies for businesses in the pressure washing industry and how one can find business insurance for themselves, we will also look at importance of insurance for a business. It is important to note that the risk management efforts of insurance are not limited to the single-firm setting.
Why Have Insurance?
Insurance is vital to a business’s vitality because remaining unprotected leaves one open to risks with financial consequences that could easily cause a small business to go under. While businesses in the pressure washing industry face more of these risks, importance of insurance rises. Fortunately, there are a number of insurance policies they can implement.
It is important to note, before continuing, that the risk management effects of insurance also extend to the multiple-firm dimension. Moreover, it can prevent the free-riding of other pressure washing businesses in competition with your business.
This works. Because, where there is a disparity in the capital between firms, those that are not wealthy don’t exert effort because of low liability. However, with insurance, wealthier firms are able to acceptably pledge themselves to lower effort, thereby limiting the reasons for less well-off firms to free ride.
Additionally, insurance ensures that third parties are protected from risks the operation of your business may expose them to. For example, any cars or pedestrians may take place in an accident as a result of your pressure washing delivery vehicle. Or by an employee of your business in the installation of a heavy machine.
All of this also fails to mention that there are instances in which insurance is a legal requirement for businesses. For those in the pressure washing industry, one example of this might be workers’ compensation. It is mandatory in the majority of states to make certain that employees of companies are adequately protected.
Popular Policies: Importance of Insurance
There are a number of common risks that all businesses may face, regardless of the industry they operate in. General liability protects against these seemingly omnipresent risks and is the most common policy for businesses to invest in.
Despite its usefulness, general liability insurance is not mandatory. Though it is still highly beneficial. Running a business without it is almost asking for it to fail due to the number of potentially fatal liabilities you are opening yourself up to. The damages from even one of these risks could result in astronomical legal fees that could bankrupt a business.
As soon as your pressure washing business begins to hire employees, it will be necessary to invest in workers’ compensation for them as it is a legal requirement. For the most part, it is legally necessary at a state level for full and part-time employees.
Some of the risks this policy insures employees against medical intervention, injury, and death due to on-the-job mishaps. That is why importance of insurance is high. Due to the fact that the job of handling pressure washing machines is inherently dangerous, this policy is in the best interests of everyone.
Of course, the pressure washing units and installation equipment must move around. And the cheapest and most efficient is via vans or trucks. This will render commercial auto insurance a necessity as all states require businesses using vehicles on public roads.
The final insurance policy pressure washing businesses should protect themselves with is commercial property. This is due to the expensive and complex nature of the highly technical machinery. Replacement or repair of even the accessories to these machines could prove costly due to their specialist nature.
Our Thoughts on Importance of Insurance
Evidently, insurance is paramount to businesses in the pressure washing industry. For a more in-depth look into pressure washing insurance, please see TRUiC’s article on the subject.
Having business insurance does more than only protect your company from potential risks; it also helps establish your company’s credibility.
Having the appropriate policies in place demonstrates to both your clients and your contractors that you take the management of risk seriously. In addition to this, it helps express to everyone that you will give the appropriate protection in the event that an accident takes place.
Contracts May Call for the Purchase of Business Insurance:
Companies much like yours enter into contracts on a regular basis. As a result, it is essential to be aware that the protection offered by insurance is a requirement of many contracts. The renting of a building from one’s landlord is one example for importance of insurance. Other instances include: Taking out loans in order to fund purchases, both for oneself and for other people, loan agreements, and client agreements.
Covers Financial Losses:
Business insurance protects your cash in the event of a lawsuit, as well as property damage or other types of financial loss. If you suffer a financial loss that is unprecedented, insurance may assist you in recovering a significant portion of that loss. Your company will avoid any kind of difficult financial situation thanks to the protection provided by the business insurance.
Because of the insurance, the company is able to continue operating normally. It significantly lessens the likelihood that it would suffer any kind of financial setback should anything untoward occur.
Ananya Prisha is an enterprise level Agile coach working out of Hyderabad (India) and also founder of High Level PM Consultancy. Her goal has been to keep on learning and at the same time give back to the community that has given her so much.