What’s So Great About Insurance for Small Businesses?

Are you looking for business insurance for your small business but are not sure if it’s worth it? LKA Insurance Agency wants to help you understand the importance of business insurance for your small business.

Although business insurance can tailor to businesses of all sizes, we want to encourage all small businesses to get the proper protection for their business. By utilizing business insurance for your business, you can ensure that your business will not go under in the event of an accident.

Understanding Business Insurance

As a small business owner, it is crucial to carefully evaluate and consider your business insurance needs because your business has more personal financial exposure in the event of an accident or loss.

In essence, it may be more difficult to pay any out-of-pocket costs if an accident does occur, and those out-of-pocket expenses can put your business under completely.

Your Business Risks Determine Your Policy Coverage

As a small business owner, you understand the fundamentals of potential losses within your business. Commercial insurance covers your assets in the event of a loss or accident.

The best way to know which commercial insurance policy is best for your business is to honestly evaluate your business’s risks and understand what coverage saves you the most in the event of an accident.

You may need more coverage depending on your industry, operations, and general location. If you have business vehicles or multiple employees, you may best benefit from workers’ compensation insurance and/or commercial auto insurance policies.

Not sure what business insurance policies are best for your small business? LKA Insurance Agency is here to help you and give you a free quote for your business today!

Evaluating Risks Without Having Business Insurance

Every business has its risks. In essence, an employee could get injured on the job, a natural disaster could dismantle your location, a client could file a lawsuit, or a business vehicle could end up in an accident. All of these aspects can be covered within different business insurance policies for your company.

Knowing the importance of protecting your assets could save you from spending thousands of dollars out of pocket, hence keeping your business from going out of business.

By knowing your company is protected with business insurance, you can have ease of mind in the event of an accident, knowing you are financially covered, minus your set deductible.

Why is Business Insurance so important?

Depending on your business structure, you may be required by your state regulations to acquire workers’ compensation and/or unemployment and disability coverages.

Not sure if your state requires a form of business insurance? LKA Insurance services Oklahoma, Louisiana, Utah, Arizona, and Texas. Book with us today for your free consultation for business insurance!

2. Business insurance also helps to make your business look credible.

It guarantees to your potential clients and prospects that you are a safe business. If any work you do for said client goes wrong, you have a way to compensate their business with insurance coverage.

By having reliable business insurance, you show potential leads and current clients that you are a safe and trusted company within your line of business.

3. Business insurance protects your employees.

Your most important asset as a business owner is your employees. Yes, the equipment, maintenance of equipment, and your brand matter; however, none of it is possible or functionable without your employees. 

Here’s why you need small business insurance: It pays off to protect your employees, and the law requires you carry workers’ compensation; although, you can also carry other forms of business insurance to protect all aspects of your employees and your business for a safer coverage route.

By protecting your employees with small business insurance, you are also protecting yourself from any future lawsuits or liability claims on behalf of your business.

4. Business insurance keeps your business covered in the event of the unknown.

Any act that is done to your business that is not done by a human is known as an “Act of God” in insurance terminology. In essence, any natural disasters including tornadoes, floods, hurricanes, earthquakes, fires, lightning, and more all apply.

All-risk and peril-specific policies cover these potential damages for your business.

5. If you can’t control your business, business insurance has you covered.

As a business owner, if you personally run into a serious medical condition such as a heart attack, stroke, or serious accident that requires you to be “out of the office” for a long period of time, company-owned life and disability life coverage policies ensure your business is covered.

Both insurance coverages under business insurance provide payments to cover any loss of income you generate. In the event of your death or life-long disability, the insurance policies give funds for purchases of your interest under a buy-sell agreement.

There are other policies offered within this form of business insurance. To learn more, speak with us today about your business coverage options and concerns.

6. You have a high advantage offering incentives to your employees

Businesses who do not offer insurance incentives to their employees may not be able to keep employees long-term, or may not be able to retain them within their business.

Any smart business owner would agree that businesses who offer health insurance, life insurance, disability insurance, or any long-term care insurance have a higher advantage and success rate with their employees. When you offer valuable insurance policies to your employees, you’re guaranteed to keep them with your business longer.

Business insurance is cheaper than you might think.

Many small business owners struggle with the idea of getting any form of business insurance. Many believe that their personal insurance coverages will cover the costs of damages on their business; however, that is by no means the case.

Business insurance is less expensive than you would think. On average, over 50% of small business owners pay less than $85 per month and approximately $1,000 per year.

The best bet for small business owners is to pay the minimum premium for their business and avoid the hefty fines in the event of an accident.

For example, The Small Business Majority used an example of a hospitalized patient needing to pay for medical bills with insurance and without insurance. Without insurance, the individual would have paid $10,500; however, with insurance they paid $0.

That example constitutes one person’s medical bills. Consider that number being multiplied by 10+ employees, and that could simply put you and your small business out of business.

You cannot predict the future of your business, but business insurance can protect that future.

Ultimately, there is no telling that your business will or will not have an accident in the future. However, the best thing you can do for your small business is get it the protection it deserves.

With proper insurance coverage with LKA Insurance Agency, you can guarantee your business is covered. Schedule with us today to discuss your small business insurance options!