Regardless of the location of your small business, you are bound to face some serious risks the most notable being compliance, strategic, operational, and security risks. Luckily, most of these risks can be countered by taking small business insurance.
If you start a business and don’t have any more money, a security risk i.e., theft can put you out of business if you don’t have a burglary or theft cover. If you face operational risks i.e., an employee acts negligently, an employer’s liability policy can cover you from resulting losses and prevent your business from collapsing.
Here are our top reasons for taking small business insurance seriously in 2024 and beyond & why Hiscox is a preferred insurance provider for small businesses in the US and beyond.
1. Minimize Financial Loss
Recent research suggests that over 75% of small businesses in countries like the US have problems accessing capital. The figures are much higher in other parts of the world. Considering over 99% of businesses in countries like the US are SMEs (small and medium-sized businesses), it’s easy to see how small businesses can’t afford to face any sort of significant financial risk yet this is inevitable in the formative stages.
With small business insurance, a business can minimize many risks i.e., legal risks like lawsuits that can lead to significant losses and collapse of small businesses. The same applies to lawsuits, natural disasters, and more.
2. Boosts Credibility
Small businesses struggle to establish a good reputation. As a startup, you’ll need a way to inspire trust, and getting all the relevant business insurance is a great start. Having the right policies shows potential clients that you can handle unexpected events and financial responsibility in cases of product defects and other eventualities like third-party claims requiring refunds or compensation.
3. Saves Money
Risks are inevitable. Without small business insurance, a small business owner will be forced to dig deep into their pockets every time a coverable loss occurs. Considering the premium paid for different small business policies is usually a small fraction of the percentage paid during compensation of a claim, having small business coverage eventually leads to huge savings. This is the case especially when small businesses bundle up key policies together and shop around for the best quotes online from providers like Hiscox.
4. Covers the Most Important Assets: Employees, Equipment, Goods/Services, Structure, and More!
If you get the right small business insurance coverage, you will have covered just about any risk that can collapse your business. Workers’ compensation takes care of your employees in case they are sick or injured. You can get commercial property insurance to cover your business premises and all its contents from risk, floods, and other risks. There are also policies for covering business interruption and cybersecurity risks.
Final Thoughts
While insurance may be a mandatory requirement in some industries in the US, most small business owners can operate without taking insurance policies. However, doing this exposes the business to serious risks that can lead to a total collapse of the business. You need coverage against theft, vandalism, natural disasters, cyber security risks, lawsuits, third-party liabilities, and more. Coverage may also be a business strategy as it adds credibility in many industries.
Leading Small Business Insurance Provider in the US and Beyond: Hiscox
Hiscox is a leading business insurance provider that provides over 400,000 UK-based small businesses with various insurance covers. Whether you are a consultant, online freelancer, an architect studio owner, hair salon owner, etc., you can get tailored insurance quotes for your business in 5 minutes.
Request for a small-business insurance quote online. Enjoy benefits like flexible covers and great business support. Hiscox is an award-winning service.
