Desmond Insurance Blog
The United States is a land of opportunity for everyday people. Almost 99% of all businesses in the country consist of small businesses. It highlights the effort many Americans are willing to put in to build a successful enterprise of their own.
Small businesses, however, are still susceptible to several risks that all businesses face. Unlike bigger companies and corporations with millions of dollars at their disposal, small businesses have limited means. This means that a minor unexpected incident can create a large financial setback. It’s why - even before the pandemic - 20% of businesses don't see it through their first year.
Business Insurance Can Mitigate an Unexpected Setback
Small business owners must take steps to protect their businesses. Business insurance isn’t a requirement for small businesses to operate, but it can mitigate potential financial setbacks. Here are some ways business insurance can play a major role in protecting a business owner’s interests.
Business Liability Insurance for Physical Stores
Online businesses may not need this, but businesses like restaurants or retail stores with customers entering your property will need to stay covered. Business liability insurance protects a small business owner’s financial interests during any one of these scenarios:
Without business liability insurance covering these incidents, business owners pay for these costs out-of-pocket. It can be financially devastating on the business if the owner has insufficient funds to pay. By having insurance and the right coverage, business owners can either be fully covered or reduce the amount they have to pay out-of-pocket.
Professional Liability Insurance
This type of insurance covers your legal fees. One example would be when a small business owner company provided a product or service that caused errors, incomplete, or inadequate work.
Professional liability insurance can protect various small businesses: from a photographer being sued for providing substandard output. Or a small construction company whose unsatisfied customer claims the house they built is not up to standards.
Not only can the legal fees result in an expensive lawsuit, but having a legal case can damage your business’ reputation. Your insurance ensures business owners have the financial means to seek legal protection while minimizing the lawsuit’s effects with ongoing operations.
Business Income Insurance
Small businesses can lose income due to property damage caused by natural disasters, fires, theft, and more. It could mean a deficiency in funds that could go toward rent, utilities, and payroll. In turn, this could lead to operational problems, especially if the business owner cannot pay for these costs out-of-pocket.
If a small business is covered by business income insurance, business owners can receive payouts enough to cover rent, utilities, payroll, or a combination of the three. It can tide the business over until the property is repaired and can resume operations.
These are just some of the ways business insurance can protect small businesses. Insurance premiums are an added expense, but it’s a small expense to pay compared to the protection small businesses afford. After all, small business owners can never predict an incident resulting in a financial blow the business may not recover from.
At Desmond Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (859) 491-5100. You can also request a free quote by CLICKING HERE.