Starting a business from the ground floor up is hard work. According to the Small Business Chronicle (Chron), small business owners should not expect to make a “profit” in their first year of business, but nor should they define profitability by the earnings their business makes during its first year.
Chron recommends that business owners should evaluate profitability in the following three ways: for the investors, for the principals and for the business altogether. A business could be breaking even on paper, but an owner could be making a higher income than their previous job. Likewise, investors’ payments can be structured in a way so that they’re making profit, even while the business’ profitability is just getting off the ground.
Regardless of how you’ll evaluate your business’ profit, a simple way to make sure you start on the right track is to invest in business insurance. A business owner’s policy (BOP) will protect you, your employees and your investment. For more small business tips, read on!
How Insurance Serves Your Business
In life, anything can happen. Whether we’re at home, on the road or on the job, there’s no such thing as being too safe. This is where business insurance comes in. As a new business owner, you want to be sure that you, your services and your employees are protected.
The first question is, what is small business insurance? In its most general form, small business insurance protects small businesses from being hit hard by financial loss. Relationships with your customers, employees and even business partners can quickly turn sour, whether through miscommunication or even equipment failure.
Why Should You Get Business Insurance?
LegalZoom writes that the smaller your business, the more likely you’ll be held personally responsible for any misconduct, even if there seemingly was no misconduct to be had. With business insurance, your litigation costs are covered and your staff protected from ill-intending people. If you lose a case after being sued, your business could suffer from bank account seizures and wage garnishments, wrecking your developing company’s budget and affecting you and your employees’ livelihoods. When wages are affected, chances are your team will begin looking for other jobs and jump ship.
Invest in Small Business Insurance
There are a number of business insurance packages for startups and small businesses like your own. These insurance policies work for you so you can continue to work for your company. These insurance package types include:
− Business Owner’s Policy
− General Liability Insurance
− Professional Liability Insurance (E&O)
− Worker’s Compensation
− Cyber Liability Insurance
When first starting your small business, it is recommended that you get a Business Owners Policy (BOP). BOP combines property insurance and general liability insurance into one manageable and cost-saving bundle. As your small business expands, you can invest in more coverage types to protect your growing assets.
Building a small business takes guts, and you’ve got ‘em! Find competitive business insurance rates here, or give us a call at 800-460-6467!