When you're just beginning to build your business, you may be uncertain about adding premiums for business insurance to your new business expenses. However, there are several ways that this add-on can help take your business to the next level and prevent you from failing. Here is the how and why of small business insurance.
It Can Protect Your Business from Unmanageable Loss
The first reason to get commercial insurance is that it will help protect you from any accidents that could otherwise put you out of business. For instance, if you are a small bake shop and your building has a fire, the costs of buying new equipment may be too much for your budget to handle. If you are selling a product and you are successfully sued by a customer, the costs of your lawyer and settlement payments might put your bank accounts in the red. Instead, if you have insurance, your insurer will foot the bill for many different types of claims. Of course, your premiums might go up after a claim, but it's a way of paying for the costs of an accident in a more gradual fashion.
It Can Give You a More Professional Face
Depending on your trade, you may be losing business by not having the proper insurance to back your work. Contractors are a big one where clients will want to see that their homes are protected and that your workers are insured from injury on their property. In this case, an investment in your commercial insurance can actually increase your revenue by bringing in those more discerning clients.
It Can Be Flexible for Small Businesses
If the costs of taking on a large business insurance policy are daunting to you, note that there are insurers that cater directly to small businesses. They attempt to provide only the coverage that you need. This could mean a liability insurer or property insurer with low coverage limits for a small home business. Or, if you need fleet insurance, you could look into insurers that offer pay by the mile insurance.
It Can Be Straightforward
Finally, business insurance can be made simple with the help of a business insurance broker. They will assess your biggest insurance needs and help you find insurers that offer a manageable plan for your business. Since they often work with larger businesses as well, they may be able to get bigger discounts that you wouldn't have access to when creating your own package as well.
For more information about commercial insurance and its benefits, talk to an agent at the Western Reserve Group.