Small businesses can boost business with insurance policy investments geared toward overcoming the many hurdles they face year-to-year, including stiff competition, litigation, and stringent regulations. Without a proper success strategy, the vast majority of these enterprises don’t have a very promising long-term outlook.
Only 80% of small businesses make it past the first 12 months, according to an SBA report. Their prospects get worse the next few years after startup, with only one in three small businesses lasting more than 10 years. You can separate your business from the struggling ones and get ahead of the pack with the right business insurance policy.
Take a look at some of the key insurance policies that can prop up your small business.
- General Liability Insurance Policy
General liability insurance provides coverage against a wide range of liabilities, including unfortunate loss-making scenarios that are continually faced by small businesses. This policy can protect your small business from significant losses resulting from common lawsuits.
An employee or customer could sue you after getting injured on your business premises. If a court rules that you’re at fault for the claimant’s injuries or damages, general liability can take care of the compensation claim. The cover ensures that any reimbursements to victims don’t hurt your cash flows.
Also, such protection can fortify your business by qualifying you for renting valuable commercial spaces. You may never get a chance to open a store or office without general liability insurance. This is because many landlords see the cover as a shield between any injured party and themselves in case of an accident on the premises leased to you.
- Commercial Property Insurance
You may also boost business with insurance policy options that guarantee your survival or quick comeback after damage to or theft of your assets. Property insurance is one such option as it can cover damage to property caused by:
- Natural disasters
Many businesses without property insurance never recover from disasters that destroy their physical operating spaces or office equipment. Choose to stay ahead of other businesses by securing your business assets with adequate insurance coverage.
- Workers’ Compensation Insurance
A single workplace injury compensation claim could burn a significant hole in your businesses’ finances. You have to be ready for any such eventuality, and nothing prepares you better for such uncertainties than carrying workers’ compensation insurance.
Don’t forget that each state has its own version of workers’ compensation insurance regulations for enterprises. You may pay thousands of dollars in fines for not carrying the policy if your number of employees exceed the exemption limits.
- Professional Liability Insurance
Professional liability insurance is a critical small business booster for those in the service industry. You need to protect your service from cash-draining liabilities if you’re an architect, doctor, dentist, contractor, etc.
Besides protecting you from legal expenses related to lawsuit settlements, this policy can help you get deals from high-end clients. Such clients seek to work with businesses with personal liability insurance, as it guarantees coverage in case a project is flawed, exceeds the budget, or is overdue. This type of coverage can also help a newly established business build credibility with its clients.
With the right insurance policy for boosting business, you can have peace of mind knowing that your small business is shielded from loss or collapse if the unpredictable happens. The above are some of the policies you should consider carrying for protection when navigating some of the harshest business circumstances.
The right commercial insurance is essential throughout COVID-19 and beyond. For a policy to suit your business and property at the right price, contact the team at Humble & Davenport Insurance today.