Small business owners have to meet several responsibilities. Purchasing small business insurance is among them. You’ll find that many policies exist when you explore your options.
For example, cyber insurance is one of the newest policies that companies should consider purchasing. The average monthly cost for all policies ranges between $300 and $500. However, these costs become part and parcel of doing business.
Although it feels like an added expense, insurance has a place. It also delivers several benefits. High-profile clients, such as corporations and enterprises, that partner with small companies have several requirements. They partner with those that can deliver and can solve problems if they arise.
Therefore, maintaining policies shows that your company remains financially solvent and protected.
It also gives clients peace of mind, especially if you work on their properties.
The following are five benefits of small business insurance.
- Protects the Company
Insurance policies protect the policy holder. Thus, the main benefit that the premium delivers is protection.
Each policy protects the company differently. Some policy options are:
- Commercial auto
- General liability
- Commercial property
- Data breach
You don’t need to run a technology company to benefit from picking up a data breach policy. Any entrepreneur who collects customer data, such as credit card information, protects their company in case a breach occurs.
If you run a delivery service company, you must insure your fleet of vehicles. The best way to protect the fleet is to hire the most responsible delivery personnel.
Even though you have a great delivery staff, they can find themselves involved in vehicle collisions that they couldn’t avoid. Insurance will help repair vehicle damages so you can continue operating your business.
In case you’re wondering, read more about the ins and outs of self-employed insurance.
- Meet Legal Obligations
Keep in mind that some states have insurance legal requirements. For example, all companies, including solopreneurs, must purchase worker’s compensation coverage.
Some states will only license professionals after they have obtained the proper insurance. Other professionals should purchase policies even if their states do not mandate them.
Professionals, such as doctors, face the threat of malpractice suits. Therefore, they become more hireable if insurance companies will insure them.
- Client Peace of Mind
Entrepreneurs who work on people’s properties, such as landscapers, plumbers, and construction workers, benefit from picking up insurance for client peace of mind.
If a landscaper or plumber hurts themselves on their client’s property, they put the client in the crosshairs of a potential lawsuit. Once again, professionals make themselves more hireable by removing their client’s liability with proper coverage.
Then, you can advertise that your company carries the proper insurance and credentials.
- Satisfy Contract Requirements
Landing a contract with an important company is a big deal. However, working with enterprises and corporations requires going through some checks. For example, they need to know that you can handle the task.
Companies of this magnitude have more eyes on them, such as regulatory. Thus, they must account for every penny that comes in and out. They’re happy to give overflow work to small businesses; they must ensure that the organization is legitimate first.
Otherwise, it can cause them a host of issues. One way that clients protect themselves is to require that their partners have insurance. If you do not have the proper protection, you risk losing the contract.
- Protects Against the Unexpected
Society has become more litigious, and insurance protects your business income in case you lose your fight in court.
Insurance also protects your company against the unexpected.
Very few people predicted that the United States economy would come to a near halt. The economic shutdown of 2020 brought several companies to their knees, especially restaurants, retailers, and beauty shops.
The American economy probably will not shut down like that again. However, storms, earthquakes, and grid blackouts will continue to occur.
Insurance protects against business interruption and income losses from unforeseen circumstances. Simply ensure that you purchase the proper coverage.
Small businesses work on tight budgets – most entrepreneurs know this. Therefore, you must watch your spending closely. Insurance can feel like an additional expense that has no obvious benefits. However, if something goes wrong financially, you’ll experience relief that you purchased the policies anyway.
Insurance protects companies against lawsuits, business income interruptions, and the unexpected. The policies and their costs can scale with you. Therefore, speak to a reputable agent who can help you find the right policies.