“Don’t be afraid to give up the good to go for the great.” – John D. Rockefeller, industrialist and philanthropist
Are you the owner of a small business? Do you have insurance? If your answer is no, then you must ask yourself, “Why not?”. There are many benefits to insuring your company. But perhaps the greatest is that it would be taking a step up from ‘good’, to ‘great’. How so?
There are 30.7 million small businesses in the US, and that makes up for 99.9% of all US-based businesses. These create 1.5 million jobs every year and account for 64% of the new jobs out there. These businesses are the main drivers behind global economic growth. Considering all this, it’s not an exaggeration to say that small and medium-sized businesses are the backbone of the economy.
On the other hand, starting your own business means opening yourself up to a lot of risks. The market is competitive and learning what differentiates you and your brand can take a lot of time, effort, and money until you succeed. Small businesses also have a high failure rate, nearly 42%, which means it takes a lot of drive and focus to stay in the game. Unexpected crises can make this even more stressful.
Insurance can help ease these complications and keep your focus on what’s important. Here are a few ways that your business could benefit from insurance, and help it grow.
Insurance works as a springboard for a small business
I’ve said that insurance is less like a parachute and more like a springboard. What I mean is that rather than just bailing you out of a tough situation, insurance can literally help you spring back up to the top of your game after a setback.
There’s a lot of risks involved in small businesses and that can’t be avoided. But by increasing your capacity to take reasoned risks, you’ll be opening yourself up to more opportunities. You know that your work will go on no matter what happens so you can stretch yourself that bit more.
You also get insurance that will help you if you lose income during an event that disrupts your normal course of work. Your foresight will ensure that even if something as unpredictable and devastating as a natural disaster occurs, you won’t be affected as much as others would be. It’ll help you get a head start once the time of crisis is over.
It will attract skilled employees
It can be a task to attract a highly skilled workforce, especially when there are so many competitors around too. Studies show that employees are more likely to stay with a company if they have health benefits and other insurance in place.
Insurance gives them a sense of security, knowing that they’ll still be protected if something unexpected occurs. This will improve your ability to hire employees who can take your business to the next level. Also, the heart of your business is your employees, so happy and secure employees mean higher retention of skilled people. This will ensure your company keeps growing at a steady pace.
Insurance works as a safety net, too
What if a customer falls right outside your shop and injures themselves, and holds you responsible for it? If you have professional liability insurance, you could hire a good team of lawyers and defend yourself. But if you don’t have insurance, you may end up having to pay out thousands of dollars from your pocket – either for a lawyer or to the claimant, or even both. This kind of example is relatable for retail businesses that have customers visiting them daily.
Even for those working from home, certain policies can help them in the case of theft or damage to their property. Home-based businesses would benefit from finding insurance that covers their equipment and inventory. This will help your business grow because you will be able to avoid dishing out huge amounts of money in these situations. Instead, you can put this money elsewhere.
There are different kinds of insurance
There’s no one-size-fits-all insurance policy. You’ll have to choose one which is right for you. Some of the insurance policies taken out by small businesses owners are:
- Professional liability – these protect you against claims of negligence due to failure to perform or mistakes.
- Property insurance – these cover any damage caused to your property and/or personal effects by certain disasters.
- Product liability insurance – in case you’re in a situation where your product has caused damage to someone.
- Vehicle insurance – these insure certain vehicles that you’re using for your business.
- Business interruption insurance – This insurance is for situations that cause an unexpected and abrupt disturbance to your normal workflow.
You can see that because these are nuanced and keep different kinds of small businesses in mind, they are capable of protecting the different elements of your business. Whether it’s vehicles, a physical shop, or even a business that runs from home – these are ways to keep them safe.
There are other reasons to get insurance as well. It makes your company look more credible and professional. It’s a benefit for your employees and attracts expert talent to you. In some instances, it’s even required by the government.
So, how can insurance help your small business?