Running a business comes with multiple risks. But small business owners that don’t invest in the right insurance policies can be faced with bigger (and more costly) problems. Building a better business is all about knowing what tools and resources to invest in to help drive success. Automatically, we think about strategic marketing plans and business branding to attract clientele and get your products/services out there, but your small business investments shouldn’t stop there.
Taking out insurance, whether it’s mandatory like workers compensation or elective, gives you peace of mind that things are looked after. Business insurance is vital for protecting everything you’ve worked hard to build, your employees and your customers. And while building insurance isn’t generally the top of entrepreneur’s lists when it comes to insurance policies, it’s one of the most important types to take out. Here’s why:
1. You Want to Prevent Business Interruption and Loss of Profits
No one wants to see their blood, sweat and tears get sucked down the drain. Business building insurance is a means of protecting your most valuable assets from damage or destruction, with as little downtime and loss of profits as possible. Even the smallest of office space repairs and damages can put a significant burning hole in your wallet. And there’s nothing worse than forking out money for something that could’ve been covered and reimbursed.
Building insurance doesn’t just cover the loss or damage to your place of work and its contents should something happen. It puts you on a quicker and more economical path to restoring and rebuilding, without all the expenses coming out of your pocket. And for many small business owners, this is invaluable.
2. You Want to Protect Your Business Against Natural Disasters
We don’t realise how necessary protection against natural disasters is until it hits us right in the face. Or in this case, your office building. The insurance lingo calls it the act of God. And regardless of whether you believe in him or not, fires, floods and hurricanes do happen. Thus, an adequate level of protection is needed to keep your business (and everything in it!) safe.
Almost all successful businesses will experience a loss at one point or another. It doesn’t matter how careful you are or how high your attention to detail is, it won’t cover losses from natural disasters. From the building that houses your work to everything you’ve invested in it, the right insurance policy is the ultimate protection to getting it all back to business, literally.
3. You Want to Keep Your Business Up and Running
Small businesses don’t always run smooth, but hey – you probably already know this by now! It’s the beauty (and pain) that comes with being an entrepreneur. You have your good days. And then there’s those ‘find a dark corner to scream in’ kind of days. We’ve all been there. As a business owner though, you must find ways to beat the battle and keep things running as smoothly as possible. This is where insurance plays a critical role.
Choose business insurance policies that will help you pick up the pieces in the event of an emergency. It’s not always a one-fits-all solution either, so delve deep to understand what will benefit your business needs. Whether it’s to compensate for the loss of income during downtime (income protection and/or business interruption cover) or reimburse you for the damage caused (building insurance), you want peace of mind that your insurance company will look after you.
4. You Want to Minimise Risks
Risks are inevitable when it comes to running a business. Some can be controlled and others will take you by surprise, sending you on a financial rollercoaster of some seriously hair-pulling times. Building insurance can minimise a lot of these risks, including financial risks, and should be a key part of every owner’s risk analysis and management strategies.
Accidents happen. And the right insurance cover provides an extra layer of protection to help manage them. Once in place, you’re in a better position to divert your energy back to building a reputable business, rather than anticipating every corporate risk under the sun.
5. You Have a Duty of Care
Your staff and clients, however small your business may be, rely on you to engage with a business that’s safe. It’s up to you – and you only – to make this happen. Protecting your business through insurance shows you’re standing up to your duty of care and taking care of the basic essentials. It also proves you take your role as a business owner seriously.
6. You Want to Make Your Business Look Credible
There are multiple factors that can make your business look more credible and taking out business insurance is definitely one of them. It’s not a common benefit we think of, but it’s hugely positive one that shouldn’t be avoided. Building this credibility builds trust with your staff and clientele too and offers a behind-the-scenes service to them that shows you’ve taken the right steps to ensure that if anything does go wrong, you’re able to put it right – quickly.
Whether your small business is set up at home-base or you have an external office space you’ve purchased, building insurance makes sense.
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