SMB Growth Depends on Business Owner's Insurance – Here’s Why
It takes a lot of time, money and effort to launch a small business. And, despite what you might read in the news, the notion of an overnight success is largely a myth. A whole lot of planning, smart choices and yes, luck, go into creating success — whether it's overnight or over several years.
With everything on the line, how much sense does it make to go into business without adequate protection against unforeseen circumstances? Operating in the public sphere without insurance coverage is the equivalent of shooting craps with your business.
Simply said, SMB growth truly depends on General Liability insurance. Here's why.
Protection Against Lawsuits
If you're operating without General Liability insurance, all it takes is one judgment against you to sink your business. First of all, you'll need to hire a lawyer to defend you in court. Then, there are the costs associated with any expert testimonies you'll need to procure to support your defense. There's also the downtime your small business may experience while you're preparing your case.
On top of that, you may spend as many as five to seven weeks or more in court defending yourself against the suit. And if the judgement goes against you? You'll be on the hook for court costs as well as the amount of the settlement to which the jury decides the plaintiff is entitled — which can easily run into millions of dollars.
Clients Often Require It
In many cases, proof of liability insurance is required as part of a bidding package on certain jobs. If yours is an industry in which this is commonplace, the very existence of your business will depend upon having the best small business insurance you can find. Otherwise, you'll find yourself locked out of a lot of deals you may otherwise have won. Today, providers like Verifly offer flexible policy options so that getting covered doesn't come with the hassle or expense of years past.
Further, if you're planning to rent a facility in which to conduct your business, many landlords require you to carry General Liability insurance. Their policies will only cover the building. You're on your own when it comes to what's inside. Most lenders will require you to carry insurance coverage to protect their investments as well.
The takeaway: Trying to operate without General Liability insurance could lock you out of the ability to rent a facility or borrow capital you need to take on a job.
Insurance Enhances Your Credibility
Being in a position to readily provide a certificate of insurance when asked to do so says you're serious about your work. It also demonstrates that you're aware of the risks involved and have taken steps to mitigate them.
In other words, it speaks directly to your professionalism.
It is next to impossible to overstate the importance of trust in today's business environment. Advertising the fact that you have liability coverage gives prospective clients more confidence in your capabilities. It also tells them you're ready to deal with the consequences should anything go wrong.
These are just a few of the reasons SMB growth depends on General Liability insurance. Again, you've put a lot of planning, effort, time, and money into getting your business up and running. Going without protection is taking on far more risk than is practical — just to save a few bucks. After all, when something goes wrong, every dollar you saved on monthly premiums will be consumed — plus a whole lot more you'll have to scramble to find to cover the costs.