Save Your Business from Going Bankrupt: The Essential Insurance Tips You Can't Ignore
Jul. 24 2023, Published 4:36 p.m. ET
As a business owner, you juggle many responsibilities—caring for employees, overseeing operations, planning growth, and more. It's easy to get overwhelmed by daily demands and neglect certain tasks. One area that should never fall by the wayside, however, is insurance. The right insurance could be the lifeline your business needs during hard times.
Data indicates that many companies that shut down after a disaster never get back up again. Of those that do, most fold within a year, largely because they lacked proper insurance. After investing so much time and effort into your business, you want to safeguard it from financial ruin.
Insurance may not seem a pressing concern for your business, but inadequate coverage or settling for lesser policies can jeopardize your business. Enterprises that don't have enough insurance often find it impossible to recover after a disaster. While insurance requires an initial investment, it protects your business in the long run.
"It won't happen to me" is a common mentality. But no business is immune to setbacks. The fact you've successfully averted disaster so far doesn't guarantee a disaster-free future. Insurance protects your company against unforeseen setbacks that could ruin everything you've worked for.
Its primary role is to transfer potentially business-destroying risks to third parties, in this case, insurance companies. Such risk transfer allows businesses to take proactive steps, knowing they have a secure and robust safety net.
This safety net lets businesses take chances they might not have considered otherwise. A small, predictable premium will let you tackle your business's biggest threats.
It's essential to note that your business may be exposed to various risks, each needing a different kind of protection. Policies such as workers' compensation, professional liability, errors and omissions, general liability, business owners, commercial auto, umbrella, and cyber, form the protective armor for your business. The key lies in identifying which of these coverage’s align with your business needs, thus ensuring that you invest in relevant policies.
Securing the necessary coverage is the first step in your business protection strategy. However, this is more than a set-it-and-forget-it plan. As your business landscape evolves—such as hiring more employees or getting more vehicles—you may need to reassess your insurance coverage. Regular assessments—at least annually—will ensure your protection is adequate and tailored to your evolving business needs.
One place where businesses can explore the best insurance options is biBERK. They have simplified the process of obtaining and using small business insurance, offering self-service technology that provides instant online policy quotes. This resource, alongside the above-mentioned insurance tips, can help businesses navigate the treacherous waters of risk and uncertainty.
Smart business insurance is more than just fulfilling a legal obligation. It's a safety net, a buffer against the unforeseen, and a lifeline that can save your business from bankruptcy. By remaining proactive about your insurance needs and regularly updating your policies, you can help ensure your business will weather whatever storm comes. This responsibility, paired with the right partner, can make all the difference in your journey toward business success.