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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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    Published on October 8, 2019

    How to Advance Your Career (and the Big Mistakes You May be Making)

    How to Advance Your Career (and the Big Mistakes You May be Making)

    The late writer William S. Burroughs once said that “When you stop growing, you start dying.” It might have a morbid undertone, but it’s one hundred percent true in terms of one’s career.

    The days of finding a job with one company that you can stick with for 30 years, and simply relax as you move up its company escalator are few and far between in today’s world. This isn’t necessarily bad news. On the contrary, it means that you’re the one in charge of shaping your career advancement.

    By putting these principles and behaviors into practice, you’ll begin to see how to advance your career quickly. Ready? Let’s get started…

    1. Define What Success Is for You

    There’s no right or wrong definition of what success in your career looks like. The important thing is to figure out what success looks like for YOU. It might, and probably will, change along the way, but if you don’t have some sort of milestone on the horizon, then you won’t know which direction to go in.

    Think about success in your career in terms of one year, five years, and 10 years. Once you have that, it’s time to lace up your boots and get to work.

    2. Learn How to Develop and Follow a Plan

    Nobody just stumbles upon success accidentally. Sure, they may stumble upon breakthroughs or new methods accidentally, but all success stories have one thing in common — a plan.

    Establish a timeline for the things that you want to achieve in your career in the next year, five years, 10 years, and so on. Consider the skills that you’ll need to learn to make these things happen and work on acquiring them.

    3. Surround Yourself With Those Better Than You

    It’s a rule of thumb among musicians that if you want to get better, then you need to get out of the bedroom and play with people who are better than you.

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    By surrounding yourself with people who are better than you and where you want to be, you’ll not only see how these people climbed to where they are in their respective fields, but you’ll learn from them and naturally want to push yourself to be better in your own job as well.

    4. Seek Out a Mentor(s)

    A mentor will not only be able to help you refine and reach your career goals, but will be invaluable in landing promotions and finding unadvertised job openings.

    One unique approach is to work on fostering a relationship with a mentor both within and outside of your company. This will help in giving you different perspectives as you rise up through the ranks in your company and career overall.

    5. Stop Wasting Your Mornings

    You may not think you’re a morning person, but if you can learn to be one, you’ll thank yourself 10 years down the road.

    Prepare a to-do list of tasks that you want to accomplish the day before and work on knocking them out for at least one hour before you respond to morning emails. The problem with responding to emails first, is you’re giving your attention to somebody else’s agenda, instead of plotting your own course for the day.

    6. Arrange or Attend a Networking Party

    If you’re attending networking events simply because you might get a few free drinks, you’re doing them wrong. These events are great for meeting new people and forming relationships. Your goal shouldn’t be to get hired by the end of the night, but to simply make a good impression by being friendly and authentic. So what’s next?

    Reach out a few days later via email or on social media to follow up and connect!

    7. Pick Up Some New Skills

    Nobody wants to be the old dog that can’t learn any new tricks. To move up in your career, you’re going to likely need to pick up new skills along the way. Maybe your company offers on-the-job training or you have the option of taking online classes at night.

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    By learning new skills, you’ll not only be able to expand upon what you can already do, but you’ll make yourself more valuable to your employer and future employers.

    8. Exploit the Benefits Already at Your Disposal

    Remember what we just said about the possibility of your company providing on-the-job training? Take advantage of these sorts of benefits!

    If you’re working for a company that allows you to job shadow other employees or has company mixers, you should attend these. They not only allow you to develop your skills within the company, but show seasoned executives within your field that you’re interested in more than just clocking in for a paycheck.

    9. Make Yourself Indispensable

    Good help is hard to find and employers want to retain outstanding employees. If you can learn to make yourself indispensable to your company, you’ll not only communicate that you’re successful, but will have a lot more job security. What’s this entail though?

    It’s actually not all that difficult. By being reliable, adapting to new challenges, and holding your own work and performance to a high standard, you’ll stand out among your peers and others will take notice. Easy enough, right?

    10. Get Off the Fence

    People who advance in their careers are those who don’t shy away from voicing their opinion and stand up with authority when the opportunity arises.

    If a problem arises in your company and you think you might have a solution or are willing to work to find one, then let others know. Employers value and promote problem solvers. Start off with something small and work your way up towards tackling more difficult tasks and projects.

    11. Don’t Wait for More Responsibility, Ask for It

    If you want more responsibility in your job, then be open about it with your manager. Your manager may be so busy with their own work that they weren’t aware you were looking for more challenges.

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    Just make sure you can handle it and that you already show strong performance in your current duties. And if your manager doesn’t seem supportive about offering you more responsibility, well, then it could be time to look for new employment.

    12. Stop Wasting Time on What You Don’t Want

    If your career goals start with “I should do this…” there could be a problem. This kind of language in referring to goals can doom them to failure because the want isn’t there.

    Consider using the RUMBA method (Reasonable, Understandable, Measurable, Behavioral and Agreed) when setting your goals. That “agreed” part should really be “want.” By going after career goals that you actually want to accomplish, you’re much more likely to achieve them.

    13. Seek Out Feedback and Apply It

    Simply doing your job might not always push you up in your career advancement. Too often, employees just assume that their bosses will notice their performance strides and reach out when the time is right to advance.

    Don’t be afraid to regularly seek out feedback and ask for constructive criticism. It not only shows that you value your manager’s opinion but demonstrates that you care about your job and want to become better in your chosen field.

    14. Pick Your Bosses Wisely

    Advancing in your career can move a lot quicker if you’re working for the right people. If your boss isn’t any good at their job or doesn’t value you, then moving up could become difficult.

    A great boss though, will be able to help you capitalize on your strengths and be an advocate for your success. If there aren’t any strong developers of talent in your management chain already, then look around for some and seek them out as mentors.

    15. Learn to Develop Your Sense of Timing

    The odds of asking for a promotion or raise are in your favor with over 70 percent of respondents to a survey from PayScale reporting some success. One thing to keep in mind that can make all the difference is when you ask.

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    Some corporate cultures may prefer that employees reach out about advancement during their annual review, but maybe you work for a more free-spirited startup. The best approach may be to take note of when others advance and ask about how the organization handles employee development.

    16. Work Hard and Promote Yourself

    Working hard and delivering a solid job performance are the keys to advancing in your career no matter what field you’re in. This doesn’t mean you need to be completely humble about your accomplishments either.

    Keep a record of your positive impact within the organization and let others both within your company and your field know that you’re enthusiastic about your role and work.

    17. Don’t Just Build Your Network… Cultivate It

    It’s way too easy to add new people to your LinkedIn network and then forget about them for all eternity. Rather than just collecting business cards or social media contacts, you should be cultivating relationships with the ones you already have.

    Follow up with people that you haven’t spoken to in a while, offer to connect them with somebody you know in their field, or ask about a new job title they may have taken on. Doing so could be the spark that leads to a potential job referral.

    18. Join a Professional Organization

    The National Association of (insert your industry here) and other professional organizations can still offer a great wealth of advantages from networking to industry insights, and skill development.

    Even outside of professional organizations dedicated to particular job fields, civic organizations can also be fantastic for making new contacts. After all, so much about career advancement is who you know, and you never know who you’ll meet who knows somebody else who is looking for someone with your skills and experience.

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    Featured photo credit: JESHOOTS.COM via unsplash.com

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