Top Reasons Why Insurance Is Important For Small Businesses

Insurance

Running a business goes far beyond selling goods and services. Insurance might not be the most thrilling topic, but it’s a crucial part of small business ownership.

Why is insurance so important? What types of insurance are required nowadays? Let’s see what more than a dozen proven business leaders have to say.

All Part of the Plan

To get a business off the ground, you need a rock-solid game plan, which often includes insurance policies. Make sure you’ve got the cash required to cover them all.

“Being prepared is the best way to avoid risk and panic mode. Be ready for anything. That will help you to stay calm, assess the situation, and proceed with efficient, capable action.” – Dave Ramsey, Personal Finance Personality

“Depending on your industry, the space you’re renting, and the practices of your business, you might be required to have certain insurance policies in place before getting started. Don’t move a muscle until you’ve got all your ducks in a row, in this sense.” – Lori Price, Co-Founder of PixieLane

“It’s the least-fun part of developing a business plan, but insurance is just one of those mandatory things you need to get things off the ground. Just get it over with, deal with the costs, and move forward without a second thought.” – Ryan Rockefeller, CEO & Co-Founder of Cleared

Protecting Your Profits

Anything can happen in the business world, including devastating events. Unlikely, yes – but you need to be fully prepared with the right insurance policy.

“If you can navigate your business career without being sued or having insurance issues, you’re doing pretty well in this world. Insurance can protect you at your most vulnerable moments, so bite the bullet and buy the policies you need.” – Dylan Arthur Garber, Co-Founder of Audien Hearing

“You probably won’t get the loan you need without a comprehensive business plan that includes an insurance strategy. Educate yourself on the subject, because your insurance needs will evolve along with your business over time.” – Jeff Meeks, VP of Sales and Marketing at EnergyFit

“As we saw throughout 2020, small businesses are on the chopping block, and you need to protect yourself in every way possible with insurance and smart planning. Don’t get caught off guard.” – Matthew Mundt, CEO and Founder of Hug Sleep

Best Practices for Employees

Your employees are the engine of the business, so protect them at all costs! Look after them with insurance policies to maintain a healthy and happy workforce year-round.

“I believe that the only hope for the human race is fair trade and ownership. People do not tend to blow up stuff that they own. The only way to fully enable trade and personal property is through insurance.” – J. Patrick Gallagher, CEO of Arthur J. Gallagher & Co.

“Offering insurance for employees is one of the best ways to show you care, even if the benefits aren’t as plentiful as you’d like. If you’re a smaller business, employees will be loyal and appreciate it even more.” – Aidan Cole, CEO of Nailboo

“It’s not something we like to think about, but employees can get sick or hurt at any time, on or off the clock. You need a plan insurance-wise to cover your costs and get employees back on track without compromising their health or well-being.” – Lindsay McCormick, Founder and CEO of Bite

“Generous insurance offers can be built into your business plan to attract and retain talented, motivated employees. It shows that your priorities are in the right place, and is simply a good omen for your business in general.” – Hector Gutierrez, CEO of JOI

“Even if you just have a few employees, do yourself a favor and protect them (and yourself) with an insurance policy ASAP. You aren’t immune to any crazy scenario. Avoid stress and financial strain by taking this simple step – get insured.” – Tyler Hayden Read, Founder of PT Pioneer

“Want the best people in your industry to come work for you? Be on top of your game in terms of insurance, benefits, and all the legal protections you can offer. It’s a big investment, but will multiply your results well into the future.” – Dylan Trussell, CMO of Culprit Underwear

Simplify the Process

Insurance can be a dry and difficult topic to navigate. Here are some tips to make the whole process simpler and easier for your business needs.

“Look into a Business Owner’s Policy (BOP) if you need an all-in-one insurance package that combines all the key elements. You can also save some cash in the process. Don’t overcomplicate it if you don’t have to!” – Lucas Nudel, Founder and CEO of Pride Palace

“The insurance space is vast and honestly confusing for a lot of people. If you need an agent or an advisor to help you figure out the essentials for your business, it’s worth the extra cash spent. Save yourself some time and headache!” – James Sun, Founder of BeautyTap

“You’re the owner, so you’re taking on the bulk of the risk and responsibility in this whole business equation. It’s a lot to handle, so ease some of the pressure by being insured. You’ll thank yourself later on.” – Jeff Goodwin, Vice President of Direct to Consumer and Performance Marketing at Orgain

In our world, insurance is a business necessity! However, no policy is one-size-fits-all. Be smart about your business and protect it without wasting key resources.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.