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10 Reasons You Should Have Business Insurance

10 Reasons You Should Have Business Insurance

Every business is different, and therefore the insurance needs of every business are notably different. However, there are practical rules about the general insurance needs of a business.

The Small Business Administration devotes several pages to advising business owners on the types of insurance they can purchase, and suggests that, at a bare minimum, small businesses of varying legal structures should carry liability insurance.

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    So what does the term “business insurance” cover? While there are a wide variety of types of insurance that fall under this designation, the SBA defines it as insurance that “protects your investment by minimizing financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, or a natural disaster.”

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    Business insurance offers a spectrum of coverage that includes protection for liability issues, property loss, vehicle use, fidelity (such as bonding), workers’ compensation, business interruption insurance, and key person insurance, as well as other less well known options. Here are 10 reasons for you to get business insurance coverage today:

    1. You can’t protect yourself from lawsuits happening.

    You have great clients. In fact, your clients are the best in the world and they would never sue you. If this mindset sounds familiar to you, you may be erroneously reaching the conclusion that you don’t need business insurance. Lawsuits have many causes and effects. Unfortunately litigation is often used strategically to protect or identify liability.

    If the work you do for a client is a part of a larger contract, your client might be obligated to sue you in order to eliminate their liability. In other words, your client may have no other legal option than to initiate a lawsuit against you. Without proper insurance, you might find yourself paying hefty legal fees to defend yourself.

    2. You have substantial investments in equipment, property, or inventory.

    Most businesses require some sort of infrastructure to keep them moving. A boutique retail location might need significant tenant upgrades or investment in merchandise. A graphic designer or photographer might invest heavily in equipment or technology. A carpenter or artisanal chef will probably have considerable financial investment in necessary tools of the trade. A business insurance policy offers protections that a personal insurance policy will not and may protect your business in case of theft, damage, or other disasters. This type of coverage ensures that your business can replace or repair property in a timely manner.

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    3. You have contracts with your clients.

    Many business owners believe that their contracts are so solid and ironclad that courts of law will be avoided completely. Unfortunately, even arbitration can require costly legal representation or advisement. While responsible business owners will continue to depend on contracts as a method to delineate expectations and agreed-upon outputs, contracts do not solve every conceivable problem. Complications happen and sometimes lawsuits are unavoidable. Business insurance may includes errors and omissions insurance to protect your company in times of need.

    4. You had business insurance, but let it lapse.

    Due to other priorities, you let your coverage lapse. Gaps in coverage are almost bad as no coverage at all. Insurance works best when there are no gaps in coverage. While your efforts and expertise contribute to your success, the reality is that there are too many variables you don’t and can’t control. Insurance protects your business when and if those factors go sideways.

    5. You have employees depending on you.

    Once you have employees, your responsibilities become more substantial and there are types of insurance that your business is legally obligated to obtain, including, in most states, workers’ compensations insurance. There are other forms of insurance available to businesses that can protect your employees’ livelihood such as liability insurance, which can offer financial protection by making payment on a judgement, removing the financial burden from the company’s concern.

    6. Your business model depends heavily on the experience or knowledge of one person.

    Just when you think that insurance offerings could not get any more diverse, you discover key person insurance. This insurance provides assistance if a key employee (such as you as the business owner) becomes ill, injured, or deceased. This insurance product protects the business while the key person recuperates or in the event a search for a successor becomes necessary.

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    7. You don’t think you have enough assets to make it worthwhile.

    In the case of sole proprietorship or even a corporation — this business structure may not completely shield personal assets — you may be on the hook for judgments against your business and those findings can follow and hinder you until they are paid or discharged. Even with limited assets, a determined assignee could wreak havoc on your credit, making it difficult to begin anew.

    8. You want peace of mind.

    You’re a pretty lucky person and you don’t live in a part of the country where disasters are likely to hit. Unfortunately, wishful thinking does not provide as much coverage as a real plan. There are many factors outside of your control and the best way to assure peace of mind is to take responsible action. An experienced agent can help you discern what is vital and essential for the longevity of your business.

    9. You want to reduce your business risk.

    The main problem with this mentality is that accidents happen. There is simply no way to prevent every possible permutation of calamity from occurring. While an ounce of prevention may be worth a pound of cure, the best prevention can be to plan for the worst and hope for the best. Then instead of pouring energy into avoiding the unforeseeable, you can divert that energy into building your business.

    10. You are considering securing a loan for your business.

    Your company is ready for expansion, but you hit an obstacle when you apply for the business loan that will help you build your venture. Your lender either balks at your business loan application or wants to charge your company an unwarranted interest rate due to your lack of business insurance coverage. Business insurance is an established way of managing risk and demonstrates to lenders that you value protecting your investment over saving a few dollars.

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    As you can see, there are ample reasons to invest in business insurance. Simply wanting to protect what you’ve built and invested in should be reason enough.

    Featured Photo Credit: EDMONTON ALBERTA STREETCAR ADVERTISING PLACARD 1926 —PIC 1 by Jerry “Woody” via Flickr

    Featured photo credit: A Better Business/Jo Jakeman via flickr.com

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    Last Updated on February 25, 2020

    15 Personal Goals for Work to Help You Succeed

    15 Personal Goals for Work to Help You Succeed

    It’s easy to blend into the crowd at work. The majority of workers choose to settle for mediocrity and anonymity; especially if they work in a large or virtual work environment. It’s much easier to go to work every day and contribute just enough to meet your job’s requirements than it is to leave a lasting impression on your coworkers.

    What isn’t easy is standing out.

    By setting personal goals for work, you can intentionally work towards getting noticed which will propel you towards getting your dream job.

    Do not settle for mediocrity and do not settle for anonymity. Dream big and stand out from the crowd. Here are 15 examples of personal goals for work to help you stand out from your coworkers and lead a successful career.

    1. Self-Mastery

    Self-Mastery is all about deepening your awareness of your skills, strengths and weaknesses. Once you identify what makes you unique and what you’re most passionate about, use that awareness to develop your skills even further.

    Use your awareness of your weaknesses to identify areas of improvement. By practising your self-awareness in these areas, you will demonstrate an ability to self regulate your development and growth.

    2. Being Grateful for Where You Are

    Take a moment and reflect on how hard you worked to get where you are today.

    How many times did you apply to your job? How many interviews did you go through? How many hours have you put in?

    You’ve worked hard to get to where you are today. Be grateful of all of the hard work you’ve put in to get you where you are today.

    By practising gratitude, you open yourself up to receive what’s next.

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    3. Staying Excited for What’s Next

    The perfect vibrational stance to be in to be actively working towards your goals is to practice gratitude for your current situation and to feel excitement for what’s coming next.

    Expect better things to come. Anticipate that you will accomplish your goal and that you’re working towards your dream job. Be open to receiving what’s coming your way next.

    4. Celebrating Each Others’ Differences

    As coworkers, we all bring different strengths to a team environment. Introverts bring deep thought to current issues and extroverts do well in busy meetings and discussions. The Myers-Briggs Type Indicator is an excellent measurement of personality differences and brings an interesting review of your team’s personalities interact with each other.

    If possible, request to have an MBTI done with your coworkers so that you can learn more about your similarities and differences; or recognize the differences in your team’s personalities and appreciate that they each contribute different values to the group.

    5. Using Your Team’s Differences to Your Advantage

    Once you learn more about the different personalities on your team, you can work more strategically with your coworkers. Some coworkers may present as introverts who prefer to take time away to review information before making decisions. Other coworkers may present as extroverts who excel in group discussions and facilitating presentations.

    Once you identify the different strengths of your coworkers, you can plan projects and group work according to each other’s personality strengths.

    6. Managing Conflicts Effectively

    If conflict arises between yourself and another coworker, take time to assess how you’d like to work through the situation rather than reacting in the heat of the moment.

    Request a private meeting with the other coworker and present the facts in an objective manner. Initiate a practical conversation to discuss the issue of conflict and then find a mutually-beneficial solution together.

    Doing so will show your coworkers and your boss you’re capable of dealing with emotionally-sensitive discussions while keeping a cool head.

    7. Becoming a ‘Yes’ Person

    Volunteer for new projects and special assignments. Be the first person to put up your hand.

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    If your boss is looking for someone to step up, be the first to volunteer. It shows you’re engaged and gives you the opportunity to learn new skills.

    8. Saying ‘No’ When Necessary

    This may seem contradictory to the previous point, but this is not!

    If you’re close to burnout or have a lot going on in your personal life, choose to say no to additional work if you must.

    Be aware of your own mental state of wellness. If you’re incapable of taking on more, say no rather than saying yes and being unable to submit impeccable work.

    If necessary, share with your boss privately that you’re not in the right place to take on work but you intend to get back on track and as soon as possible.

    9. Showing Humility

    It’s not possible to be perfect at everything all the time. If you make a mistake, own up to it.

    Let your boss know or coworker know that you made a mistake and you want to correct it. Tell them that you have learned from this experience and you will do things differently going forward.

    Practice humility so that you may demonstrate a willingness to do better.

    10. Modeling Work Life Balance

    Make your own self care a priority so that you’re allocating time out of the office to your exercise, health and nutrition goals.

    Carve out time before or after work to taking care of you. Propose walking meetings during the day or try organizing a group fitness classes at lunch. Invite your coworkers to join you in trying a new yoga class.

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    Show your coworkers that you’re committed to work life balance so that you can show up as your best self while at work.

    11. Under Promise, Over Deliver

    If you commit to finishing a project by a certain time, be certain that you will do what you said you’re going to do when you said you’re going to do it.

    Do not commit to completing a project using an unrealistic time frame. If you’re unable to deliver, you will inevitably harm your reputation and will negatively affect others’ expectations of your abilities.

    Rather than committing to more than you can accomplish, commit to what you’re capable of or slightly less so that you can over deliver on your promises.

    12. Finding Your Own Answers

    Rather than quickly turning to your coworkers or your boss when you have questions, do your best to find your own answers.

    Review company policies, best practices and previous situations. Use critical thinking to determine how to best handle a situation and demonstrate that you’re able to make sound decisions when it’s required.

    After doing your research, present the situation to your boss and share how you would handle the situation. Ask for guidance to see if you’re on the right track. By doing so you’ll demonstrate drive and ambition.

    13. Asking for Help

    If a situation arises that is above your pay-grade and you must ask for help or guidance, do so with humility.

    Respectfully ask your boss or coworkers for their help. Let them know that you are grateful for their assistance and that they’re willing to share their knowledge. Offer to be of assistance to them if it’s needed in the future and repay the favor.

    Here’re some tips for you: How to Ask for Help When You Feel Silly to Do So

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    14. Offering Help

    If you can see a fellow coworker is struggling, offer to help them out. Offering your help will demonstrate your ability to work as a team player.

    If your workplace has hired a new employee, offer to take them under your wing and show them the ropes. Let your boss know that you’d be happy to show them around.

    It will demonstrate your seniority in the workplace and your interest in fostering teamwork and morale.

    15. Taking a Brain Break Regularly

    Take a few moments whenever you can for a mini meditation. In the bathroom, the coffee room, or on the subway on your way to work, take a few deep breaths and center your mind.

    Slow down your heart rate and tune in to your inner self. Remind yourself that work can be stressful but we don’t need to let the stress affect us. Return to this grounded and centered state whenever you feel out of alignment.

    The Bottom Line

    Use this list of personal goals to skyrocket your career path at work. Let your actions speak louder than words.

    Demonstrate to your boss and your coworkers that you don’t intend to settle for mediocrity; you intend to stand out from the crowd and will do so by implementing personal goals and actively working towards your dream job.

    More Tips About Goals Setting

    Featured photo credit: NORTHFOLK via unsplash.com

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