Operating a profitable business is difficult under any circumstances. Today, it is more challenging than ever. It seems potential pitfalls are everywhere.
One of the most significant forces affecting businesses these days is the repercussions of the COVID-19 pandemic. While the world seems to have a better handle on the virus, its effects will linger for many years to come. They include changes to how, when, and where employees work, as well as how customers and clients engage with companies.
Then, of course, ongoing supply chain issues are making it more difficult for companies to get the raw materials, components, and supplies they need to function. They have also made it harder for businesses to ship their products.
And with all those issues causing headaches for business owners, there remains the ever-present risk of losses from property damage and other causes. That includes lawsuits from customers, clients, and others who believe a particular company has caused them financial injuries. Fortunately, these problems can be addressed by having adequate business insurance.
Why Business Insurance Is Critical
It would be ideal if businesses could operate flawlessly and incidents never occurred. But the reality is that accidents happen.
Damage occurs, and lawsuits are filed every day as a result of things like:
- Employee injuries. No matter how well you train your workers and how careful they are in doing their jobs, people still get hurt.
- Non-employee injuries. Something as benign as a raised ridge in a section of carpeting that trips a visiting customer or client can be very costly if the person falls, suffers an injury, and sues you.
- Vehicle accidents. Even the safest of drivers make mistakes, and the result can be significant financial consequences.
- Professional errors and omissions. If your company provides professional advice or services, you are required to meet certain standards. If you fail to do so, a client can sue you for the financial damage they incur.
Even in the case of a baseless lawsuit, your company must defend itself and pay for legal representation. Consequently, it is vital to your company’s financial stability to have business insurance. It is also a good idea to stay current on business insurance trends.
Business Insurance Industry Insights
You need to understand the insurance industry to develop an effective business insurance strategy. If you have not shopped for business insurance coverage recently, you will be pleased to see how providers are evolving to meet customer needs.
This includes:
- Making it simpler to purchase and manage insurance policies online. Insurance companies know that business owners and decision-makers are busy people who do not want to spend a great deal of time researching and buying policies.
That is why many providers offer instant, self-service policy quotes on their websites. Then, you can purchase the policies you need, report claims, and manage your policies online, too. Plus, should you ever need a Certificate of Insurance (COI), you can get that from the website, as well. - Offering highly customizable coverage. Insurance companies have always provided several types of insurance policies to cover different business risks. For example, you might need workers’ compensation insurance to protect employees financially if they are injured on the job, commercial auto coverage for company-owned or leased vehicles, and professional liability insurance to shield the business from client lawsuits.
But companies today are more flexible than ever in working with customers to find the ideal policy limits and premiums to protect their businesses. - Doing more to help clients minimize business risks. When a company experiences fewer incidents and claims, everyone wins. To help with that goal, insurers provide a wealth of free information and resources. These materials can be particularly useful to first-time business owners.
- Offering new and enhanced business insurance policies. Insurers have historically been slow in adapting to evolving client needs. That may be partly because those needs tended to evolve gradually in the past. However, markets and businesses can change very rapidly today.
Consequently, business insurance companies have gotten much more nimble. That means if you could not find a specific coverage or coverage with particular features and costs previously, it may be available now.
Small Business Insurers As An Extension Of Your Company
To sum up the recent trends in small business insurance, you might say that companies are striving to be more than insurance providers. They are focused on being extensions of the organizations they serve.
And that is a tremendous advantage to companies in today’s fast-paced business world. As your financial protection needs change, your insurance company is with you every step of the way.
