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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 15, 2019

    How to Achieve Goals and Increase Your Chance of Success

    How to Achieve Goals and Increase Your Chance of Success

    Does it ever feel like the things you want to accomplish always end up on the back burner? If the answer to that question is “yes,” you’re not alone. Only about 33% of people consistently work toward their goals. In some cases, their goals may seem too lofty to accomplish, or else they aren’t sure how to make a plan for them.

    If you don’t come up with concrete steps to take toward your goals, they’ll remain dreams. There’s nothing wrong with being a dreamer, but being able to turn your dreams into goals you can realize will help you lead a happier and more fulfilling life.

    Luckily, you can realize almost any dream when you harness the right goal-setting methods.

    In this article, I’ll show you how to achieve goals and get closer you success.

    1. Break your dreams down into specific and measurable steps

    We couldn’t talk about goal-setting without mentioning SMART goals.

    SMART goals are specific, measurable, assignable, realistic, and time-related.

    Specific and measurable steps are so important because if we don’t know what our target it, how can we ever hit it?

    Take all those beautiful dreams you have for yourself and make them into things you can actually do. If you want to be an entrepreneur, for example, a step toward realizing your dream might be researching what you’ll need to start your business.

    Find out more tips about utilizing SMART goals here:

    How to Use SMART Goal to Become Highly Successful in Life

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    2. Have at least one clearly defined goal for every interest and role in your life

    It’s so easy to become complacent or stagnate. We often think that our careers are the only places where we need to set goals, but we aren’t only what we do.

    To make the most of your life, take the approach that you’re always learning and growing in everything you do. Anything worth doing is worth doing well after all.

    Set goals whether you’re sponsoring an activity for your child, taking up guitar lessons or trying to prove your worth at work.

    You’ll notice that this approach forces you to constantly develop new skills. It can also be fulfilling to put more focus and value into all areas of your life— not just the ones related to our careers.

    3. Align your goals with your life’s mission, purpose and passion

    Take the opportunity to do some soul-searching. What is it that you want to do with this precious life of yours?

    Anything that conflicts with your life’s purpose is bound to cause discontent. Staying in a bad relationship, doing a job that goes against your values, or maintaining the status quo just because it’s comfortable are not options for you.

    Thinking about your goals in this way can help you eliminate things in your life that don’t serve you. This frees up mental space that you can use to do the things you care about the most.

    Many of us struggle to find the time to work on our goals, but this strategy enables you to make more time.

    4. Create goals that ignite your spirit and inspire you to take action

    If you can’t be fired up about your goals from the start, they might not be good goals for you.

    The road to success is often tough. You’re going to have times when you might feel tired or discouraged.

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    You need to feel inspired enough that you’ll be able to overcome obstacles as you encounter them.

    If what you’re doing motivates you to be the greatest version of yourself, you’ll be much more resilient.

    5. Write down all your goals in specific, measurable detail

    This is your road map for what success will look like. The more you define what you want the finished product to be, the greater the chance that you’ll reach that vision.

    When you write down your goals, you’re creating a document that you can revisit to make sure you’re on track.

    When you’re in the middle of trying to achieve a big goal, it can be hard to see what’s working for you. The things you write in this step will help you stay on-message as you take your goals out of your mind and into the real world.

    Don’t just write down your goals and stash them away in a folder somewhere. Take the extra step to put them somewhere where you’ll see them.[1]

    If you have too many goals to post on your desk, write a summary or choose one or two steps to work on for the day. Just seeing them will keep them in the front of your mind.

    6. Commit to hitting each of your targets without exception

    You wouldn’t have created the target if you didn’t think it was necessary. Hold yourself accountable for taking the steps to succeed.

    You can always adapt your strategy or break your targets into smaller steps if you find that they aren’t attainable as you originally wrote them.

    Hitting even the smallest target is cause for a celebration. It’s a step in the positive direction. Your success will make you crave more success.

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    We often make excuses when we get tired or overwhelmed. Take away the option to make excuses. You will only be satisfied with the best effort from yourself.

    7. Share your goals with others to motivate each other

    There’s something so powerful about people sharing their goals and dreams with one another. Doing so gives voice to some part of us that could remain hidden (and therefore never be accomplished).

    When other people know about your goals, they can cheer you on and hold you accountable. When people share their vision with you, you can do the same for them.

    This strategy is particularly beneficial when you’re trying to develop healthy habits. Post about your workout on social media, or do a healthy eating challenge with your best friend. You’ll be less likely to slack when temptation arises, and you’ll probably encourage someone else to reach for their goals too.

    8. Set a series of daily, weekly and long-term goals, complete with starting times and deadlines

    Many goals never reach realization simply because the goal-setter doesn’t check their progress. People tend to forget what they set out to do, or their goal gets crowded out by other obligations.

    Forcing yourself to revisit your goals at regular intervals breaks them into smaller steps and it reminds you to think about them.

    Giving yourself regular deadlines for smaller tasks related to your goals also helps you reflect on your strategy. You’ll figure out what works for you, whether your timeline is realistic, and whether or not you need additional help to stay on track.

    In addition, celebrating small wins helps you stay motivated. Here’s how:

    How To Celebrate Small Wins To Achieve Big Goals

    9. Take 10 minutes every day to imagine how great it will feel to achieve your goals

    Visualization is such a powerful tool. Some of the most successful athletes, celebrities and business people take time each day to think about how success looks and feels for them.[2] Imagining that feeling of satisfaction can be a great motivator.

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    When you do meet your goals, take some time to be grateful. Thank yourself for showing up and doing the work. Be grateful when the stars align properly to help you advance to the next step.

    It’s not just getting to the destination of your goals that matters. How you take the journey is important too.

    10. Take an action step toward reaching your goals every day

    Your goals can easily get buried in the hustle and the bustle. Even the smallest step in the right direction is still moving you forward.

    Keep chipping away at the work every day and before long, you’ll start to see those dreams come to life.

    Maybe you didn’t start your business today but you designed the logo that’s going to go on your website and business cards. Doing that task well is going to help you so much in the long run.

    Concrete actions day by day draw your dreams out of obscurity and into the realm of possibility.

    The Bottom Line

    Dreams can inspire and overwhelm us. By turning our dreams into goals that we can work toward, we increase our chances of success. Things that once seemed impossible are suddenly within reach.

    It’s time to start turning your dreams into goals and your goals into realities. Change begins today.

    More Resources About Setting & Achieving Goals

    Featured photo credit: Andrew Neel via unsplash.com

    Reference

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