A lot goes into running a successful business, but in the long term, one question matters most: are you making more money than you’re spending? If the answer is no, your business model isn’t sustainable. If the answer is yes, the follow-up question is usually about how you can make more.
While most business owners get this right away, they tend to be less familiar with the role insurance can play in boosting that revenue they earn. If you’ve never stopped to think about how insurance can help you grow, then consider these four possibilities.
It’s no secret that bigger clients pay more.
But they ask for more from their service providers, too. Those demands usually include general and professional liability (also called errors & omissions) insurance policies with certain limits, often $2 million. While it’s fine to acquire insurance or increase your limits when a client requires it, already having coverage in place would send an even more powerful message.
When you have robust liability insurance, you demonstrate to potential clients that you…
In the Internet age, anyone can start a website and call themselves a consultant. Insurance is one of those professional touches that sets you apart from the competition.
Business moves fast. Having coverage in place means you’re ready to sign a contract when an opportunity arises, so you can get down to work faster.
If something goes wrong, most uninsured businesses don’t have the funds to settle or even defend against a major lawsuit, which means the plaintiff will have to accept a loss.
As you gain experience and expertise, it’s natural to expand your offerings into higher-value services, and doing so can significantly boost your revenue.
Naturally, this is great for your business—but it can lead to trouble if you don’t adjust your insurance policies to reflect your new income. There are two major reasons why:
The good news? It’s pretty easy to call your agent and make policy updates as your business grows.
At a certain point, a business can’t grow without adding people. Hiring employees is an exciting milestone for any business owner, but it also brings an entirely new set of logistical challenges: taxes, benefits, and workers’ compensation insurance.
Workers’ compensation is the only type of business insurance legally mandated throughout most of the country. While laws vary, most states require a business to purchase workers’ compensation as soon as it hires a full- or part-time employee. This coverage might feel like one more unwelcome expense, but it’s critically important. Not carrying it could result in fines and penalties! Plus, if your employee gets hurt on the job, you could be liable regardless of whether you have coverage.
Think of workers’ compensation as another essential support structure for employees—right alongside a computer, desk, and software license.
A business plan is a hopeful document. It lays out how exactly a new venture will succeed. But what happens when…
If you don’t have insurance, you can throw your business plan out the window. But if you do have adequate coverage, you can probably get back to normal with minimal financial loss. The key to staying on track? Work with an agent who can recommend appropriate policies for your industry and risk exposure.
With the right business insurance policies in place, you can stop unforeseen expenses from derailing your revenue growth.