Managing a business is a delicate art. It’s like walking on a tightrope at 50 feet high while balancing income and expenses, and I’m sure I don’t need to tell you how much weight there’s on each side. Ideally, we want our expenses to be lighter than our income, that’s how you make a profit. There are business owners who try to minimize expenses by cutting out everything that doesn’t provide an income, but it isn’t as effective as they think it is, mainly because not all assets are meant to produce. Having security guards won’t provide you with any money, but it will prevent that your hard-earned money goes to the hands of someone who tries to threaten you with violence.
It’s exactly this way how business insurance works. By covering your main assets in case of an unfortunate event, you’re taking steps in advance, foreseeing possible risks, and assuring your financial future for your business. That’s the mark of a true businessman, to plan every step they take to achieve their goals while making contingency plans for unexpected events. But insurance does much more than just having your back. It can be the key to closing deals and to open new frontiers for your business.
- Minimize your expenses in case of a disaster
First of all, the main purpose of business insurance is to provide coverage to your assets, and just by doing that you’re saving money that otherwise would be used to replace your property losses. Take a look at your first balance sheet and see how much you spent on getting the building for your business, customizing it or buying the tools and equipment you needed to begin operations. Do you think you would be able to do it again? however, this time you got to take into account all other assets that need resources as well. Bear in mind that, without said resources, these assets will become rusted gears in your company. As I said in the beginning, it’s a fine art that requires the ability to balance things out.
But, if you have Business Insurance coverage, your first line of defense will be ready for when a disaster happens. Depending on the quote that you got from your insurance agent, you may have got different coverages. A really good insurance deal is the one where 80% of your assets are covered under any circumstance. Let me give you a quick example:
Imagine that you have business insurance coverage that protects your building in case of fire, and one day, an old gas line in your building explodes and creates fire, damaging everything in it from computers, documents, infrastructure, chairs; everything turns into ashes. You would need to shut down, rebuild, buy everything again and start over. Plus, you would need to pay your workers while rebuilding is going on. Every single instance where you would need to spend due to this accident is covered by your business insurance policy. First of all, repaying your lost property, then covering your rebuilding expenses, next paying you a percentage of what your business would have earnt in profits have the fire not have happened, and last by paying your staff while you’re temporarily out-of-business.
- Expand your business
If you’re a business owner, you’re probably always looking for small investments to make in order to expand your business and your net income. In order to do this, you need to have the right connections, but more importantly, you need the leverage to being taken seriously.
It may not look that obvious for some people but having business insurance coverage adds to your business owner resumé. It means you take hard work and dedication into consideration and are willing to protect it from turning into ashes. This, in turn, increases your influence in the business world and helps you make new friends and possible business partners. Businessmen that are experts in their field know that prevention is as important as dedication and good ideas.
In some cases, it is necessary to have insurance in order to get anything done. For example, some contractors agencies need to show an insurance certificate to be eligible for a certain job. Continuing with this same train of thoughts, some business owners may look to make business deals with those who have insurance coverage, simply because it saves a lot of hassle when it comes to situations designed for insurance purposes.
- Obtain the best deal for what you need
There are many good insurance companies in the US and many not too shabby, and each one has their own formula to calculate quotes. That means that there’s always one who can provide you with coverage that fits your needs for a lower price compared to the rest. If you were to find this agency you would hit the jackpot. However, in order to do this, you need to have a great agent helping you looking for the holy grail.
But how much does this help? A lot. It can save you from hundreds to thousands of dollars per year depending what insurer you chose and what coverage it provides; this is because not all agencies provide the same types of coverage. Some agencies don’t offer protection against water damage or hail. So this is to be taken into consideration when making your final call and choosing the company that’s going to stand by your side as a shield.
End balance
Let’s do some recap. The first thing you need when looking for insurance coverage is to get the best agent you can. Independent agents are the best at this since they will see across all the board of insurance companies. Moreover, this is perfect because that’s what you need next, to choose the agency that offers every possible coverage at the best price possible. It’s difficult but not impossible. You don’t buy the first thing you’re being sold. After having your insurance, you can start opening negotiations with other business owners you would like to make deals with, all the while having the certainty that you possess the tools to make every deal possible.
After all, it takes a great mind to assimilate this information and how to use it in their favor. The one thing you shouldn’t do is go about without insurance just because it’s not essential to include in the budget. Just look for businesses that have gone bankrupt after a lawsuit, and you’ll realize the importance of these words. Give importance to what demands it, and you will achieve great things.