How Small Business Insurance Gives You A Competitive Advantage

A small business owner happily chats with a customer by phone.
| 04.21.22
Sarah Prais

When you started your small business, you probably weren’t thinking about all of the potentially negative scenarios that could happen either on-site, to your employees, or even from completely uncontrollable natural disasters that you read about or see in the news. Business insurance will work to your advantage in case your employees are injured on the job, your building suffers a total fire loss, or your equipment is stolen. If you want to be ahead of your competitors and stand strong in any unpredictable business world, your best bet is to purchase the right small business insurance to protect your business, your employees, and yourself.

Business Insurance Can Help Your Business Grow

Small business insurance can offer you protection and peace of mind. You will be able to rest your head at night knowing that your small business is insured properly. You will have such confidence in knowing that you have selected the correct policies to protect your property, your equipment, and your employees from all sorts of events that could potentially create a financial issue for you down the line.

Insurance is required to win some jobs. Some gigs require you to have insurance, that’s just the way it is. Having insurance means you can get the job instead of one of your competitors. What you need is a quick decision from a potential insurer and the ability to show your certificate of insurance on the go. This will demonstrate that you are prepared for the job! General liability insurance tends to be what is needed—which can be purchased as a standalone policy or as part of a business owner’s policy. There are other specialty policies you may need, including vendor and exhibitor insurance or special event liability insurance for a day. If your small business includes event work, it is best to use a competitive strategy to be ahead of the game with proper insurance coverage.

Commercial leases and insurance requirements. If your business is growing and it is time to seek out a space for it outside of your home, then it is important to know that you’ll need general liability coverage in order to sign most leases. Most landlords require proof of insurance. It is to your advantage to be ready for this insurance requirement so you don’t have to delay your business’s opportunity to grow! Competitors may be unaware of this and could get caught up in not having what they need. There are specialty coverages to consider, as well, including rental interruption insurance and leasehold insurance, though these are less common.

Be ready for a business loan. If you’re intending to apply for a business loan at your local bank, put your best foot forward and look into the requirements first. This will make the process smoother for you. Having proof of small business insurance will help your application because the bank will see that you take protecting your business seriously. It demonstrates a commitment to investing in your business. The more you put care into your business, the more likely you are to not default on a loan in the bank’s eyes. Sometimes having an infusion of cash can really help a business take off!

Whether you’re thinking about a business owner’s policy or seeking to hire some employees and needing to fulfill workers’ compensation requirements in your state, having small business insurance in place is a watershed moment for you as a business owner. You’re ready to really grow your business and take on competitors. As you grow, there are other insurance policies that can give you an advantage, like cyber insurance to help deal with cyber attack realities. The greatest advantage of business insurance is protecting your hard work and your employees. That kind of care keeps your business one step ahead of the competition, always!

About the Author

Sarah Prais is a content creator who enjoys blogging on a myriad of topics both professionally and personally. She loves spending time with her crazy dog, and watching anything on Shudder with her fellow horror fan—aka boyfriend.