If you or a loved one has recently started a new business, congratulations are definitely in order. From putting together an effective business plan, securing a location, and marketing the start-up, it is very hard work being a small business owner. It is also full of risk. Entrepreneurs often put everything they have on the line to ensure the success of a business, and, with such a high amount of energy and resources being funnelled toward a business, it can be easy for forget the importance of protecting those efforts. There are plenty of things that can go wrong when it comes to a new business, and it’s never been more important to get the appropriate insurance. Here are the top reasons why every entrepreneur should consider insuring their small business as soon as possible:
1. Prevent Problems with Employees
The employees you hire as a business owner are some of the most important investments you make. You depend on them to make your business run, and every business owner wants a group of employees who love and are good at what they do. Unfortunately, as much of an asset as your employees are to your business, they can just as quickly turn into a huge liability. Every business owner should consider investing in workers’ compensation insurance. This insurance will supplement an employee’s wages in the even that they cannot work due to trauma or medical emergencies that happen on the job. If an employee accepts the compensation, it will also bar him or her from filing a lawsuit against your business. Workers’ comp helps you take care of your employees in an emergency and protects you from legal repercussions.
2. Protect your Material Assets
Because so much money is invested to get a business off the ground, it would be devastating to suddenly lose those investments without a way to get them back. You have to consider all the material assets that are part of your business and make sure they are adequately protected. Things like buildings, vehicles, equipment, and furniture can all be insured. If you’re not sure what to insure, figure out where you have invested the most money and start from there.
3. Lower your Overall Risk
Instead of simply insuring the assets that you think should be insured, try to consider getting insurance as a way to reduce your overall business risk. Maybe you don’t pay too much monthly for the computers you have been financing for office employees, but, if damaged or stolen, it could delay work flow for days. Try to think about the things that are most important for your day-to-day business and protect those things from harm. This will help you sleep easier. It’s also a good idea to think about the most immediate risks to your business and start insuring from there. If you live in an area with a high level of burglary, maybe you should invest in a security company that also insures the assets in the building.
Carol Wilson is a freelance insurance business writer who is in the midst of creating her very own business insurance guide for consumers. In the meantime, she likes to share her knowledge of business insurance and other business related topics such as marketing to small business owners, entrepreneurs, and other corporate moguls. She welcomes your comments at [email protected].