When you think about scaling your small business, what is the first thing that comes to mind? Automating systems? Expanding your marketing efforts? Increasing your workforce? Redesigning your business’s logo? What about business insurance?
Well, if insurance is at the bottom of your to-do list, you may want to reconsider. Having cohesive business insurance is fundamental to any successful business, yet many business owners often neglect it. Of course, we understand that business insurance might not be the most tantalizing aspect of your business growth plan. Just getting sound advice on business insurance can sometimes be challenging. Take a deep breath and relax. At Gild Insurance, we can give you the help and guidance you need and deserve.
Why Business Insurance?
1. Business Opportunities
Let’s say you’re the owner of a small-scale home improvement business, a painting company for example, and you’re operating without insurance. If the bulk of your business comes from private homeowners, it’s entirely possible that your clientele won’t give a second thought as to if your insurance coverage is sufficient. But what would happen if, through word of mouth, you’re offered a contract on a much larger painting project at an apartment complex? Will they want to see your policy? Will the contract have an insurance requirements section?
You already know that your business can handle the job, and your prospective client is also confident because they trust the person who referred you. And best of all, the job would double your monthly income. It looks like a win-win all around, and you find yourself very excited to take on the job. There’s just one little thing: the company asks to see a certificate of insurance (COI) before signing off for you to begin.
Now, do you think the company is willing to wait while you purchase business insurance? Of course not; they’ll just find someone else to do the job. Now, you’ve not only lost the job, but any other jobs you may have gotten through referrals. Plus, your business’s reputation has now been tarnished.
2. Business Financing Options
If you have plans to scale your business that require additional financing, that is another reason you need adequate business insurance. If you are considering a Small Business Administration (SBA) loan you’ll quickly find out there are insurance requirements needing met. What coverage you need depends on your type of business and the loan you choose.
As you might imagine, grants and venture capital funding are likely also to require insurance. This is necessary for basic risk management and protection on the investment. Any organization that is providing private equity financing will obviously have different criteria but the chances are very slim that they will shell out a penny without the proper assurances.
3. Personal Protection
Many people assume that the only reason to have business insurance is to be protected in the event they get sued, and while it’s true that this is one aspect of it, lawsuits are far from the only way a loss can occur.
Losses can occur from natural disasters like flood or fires or things like theft, or cybercrime. Should an event like this occur, you might have to shut down your business for a period of time, resulting in a loss of business income which is also another aspect insurance can cover. The right insurance plan can help you limit or eliminate many out of pocket expenses for you and your business.
What Types Of Business Insurance?
If you’re looking for a roadmap of all the different types of business insurance plans that are available, check out the Gild Insurance Map for a brief overview.
To ensure the growth of your business, you need to insure it. And if you need help figuring out how to do that, remember that help is just one click away. The team at Gild Insurance— along with Gildber the husky, our friendly but incredibly knowledgeable mascot — are always standing by, ready to help you with whatever you may need.
Don’t hesitate to contact us so we can help you take your business to the next level! You can always check out our Gild Guide to the most common small business insurance questions to get started!
