Every business comes with a fair share of risk. Today, the risks are even more than we ever anticipated. We are living at a time when global pandemics are hurting businesses in profound ways. Unfortunately, we don’t have control over most of the things that happen. Even when you have taken all the precautions, the risks never seem to go away. It would be best if you protect your business.
Only about 70% of the small businesses survive to see their fifth birthday in Canada. Even more glaring is that over 7000 businesses go bankrupt annually. These stats paint a grim picture of what to expect. Insurance is an easy way of plugging those gaps that you will not be able to seal.
Here are the top six reasons why you need insurance for your small business.
1. To shield the business from potential liability
As noted, business liability can easily cripple your operations. Assume an employee who claims that your business negligence caused him or her permanent disability sues you. If the claim is awarded, you will have to pay if you don’t have workers’ compensation insurance. You can take workers’ insurance, work-related insurance, contract-based insurance, and many other actuarial derivatives related to employment or contractual obligations. You can cover all your bases to ensure that you have protected your business from any eventuality. Small businesses don’t have to buy general business insurance. If you visit this site, you will find unique challenges affecting small businesses in Canada. You will also see how insurance packages should specifically address your immediate needs. Often, you want an insurer who can provide you the cover you need to scale over time.
2. To protect employees
Every small business must leverage its resources for it to compete. Human resources are the leading sources of competitive edge for any industry. Employees want to work in a place where they are protected. They want to be assured of their welfare, salary, and job security. You cannot guarantee that in a world that is full of risks.
First, you have to provide a safe work environment not only now when we are facing the coronavirus epidemic but also in the future. Secondly, you have to ensure every one of them to protect them and their dependents. In case of any inconvenience, the insurance will easily take care of them. In case of injury, disability, or any other problem, their families will not have to suffer.
3. To secure business assets
Business premises are laden with hazards from natural calamities to political unrest. Theft, arson, and destruction could quickly put you out of business. You have to secure all your business assets, including buildings and other assets. Ensure digital assets such as computers, websites, social media accounts, and databases are safe. Secure them against cybercrimes and insure them. Business disasters can wipe out your reserves, disrupting all business operations. Insurance can help you return to work as soon as possible.
4. For your peace of mind
Everyone wants a piece of mind. When you start a business, you are prepared for success, not pain and disappointments. Some people come to the rude awakening of the vagaries of entrepreneurship. The cycles of business from booms to slump can be hectic for anyone, even those who are experienced. However, you can reduce such problems through adequate insurance of your business processes. You can ensure most of the business functions, including outsourcing and customer acquisition.
5. To comply with regulations
Some small businesses are obligated to provide insurance cover for their employees and processes. Contractors in the construction, home services, remodel, and manufacturing are required to secure employee welfare and health. Apart from elaborate safety standards in the company facilities, they must offer comprehensive coverage of all the possible risks associated with their job. Failure to comply with such regulations can cost a small business, its operating license, or expose it to fines.
6. To protect your clients
Your clients deserve quality services and products at the agreed time. If you have assured anyone of service and delivery, they will make decisions based on such information. You must be able to deliver at all times if you don’t want to disappoint your clients. You cannot offer reliable service if you have not mitigated all the risks associated with business downtime and potential disruption of overall functionality. Customers also want you to protect them from potential liabilities. Having insurance makes you attractive and competitive in the market.
Insurance comes in different packages. You can buy cover for natural calamities, property, business processes, workers’ compensation, and many other options and alternatives. Since you may not afford to insure every aspect of your business, you must completely seal off major avenues of liabilities. Your business will have a fighting chance in this cutthroat business environment.