Three Reasons Small Business Owners Should LOVE their Insurance

Valentine’s Day was last week and everywhere I went it looked like Cupid had made his annual drive-by shooting. Chocolates and cards and stuffed bears, oh my. All flashy reminders that it’s the season to show some LOVE.

I bet your insurance agent was not on your list to send a box of chocolates. But perhaps they should be. If your insurance agent has provided insurance that covers the type of business you are in, and did a good job of addressing what risks your business faces, then there are a lot of reasons to love your agent. Or at the very least, three reasons to love what insurance DOES for you.

1) Insurance gets you customers. Customers need to feel safe where and with whom they do business. Your safety rating, trained employees, and years of experience are all awesome – but if you want the contract? It’s going to require a certificate of insurance. To most people it looks like an ordinary piece of paper but to your customer it represents your commitment to their safety.

2) Insurance paves the way. Customers aren’t the only ones who require you carry insurance – so does the landlord who is renting you office space. You just leased a new copier, the one more complicated than the space shuttle? That means insurance. You need a permit or a license to do something for your business? Probably need to show insurance.

3) Insurance is your life jacket. Unless you are independently wealthy and want to lock away thousands of dollars in case your business is sued, your office building pipes freeze and then bust flooding your valuable files, your employee gets hurt on the job, etc. You need insurance to keep you afloat after a loss, and keep you in business. Think of insurance as the moat around your castle preventing the marauding invaders from destroying what you’ve built. What, your business isn’t a castle? That’s okay whatever you’ve built, be it a landscaping business, florist or restaurant – it still needs the protection.

Maybe you don’t have marauding invaders trying to pillage your castle but you do have the possibility every day you are in business to be held liable for an injury, to possibly lose merchandise or equipment to theft, to wreck a delivery truck, and much more. Insurance is good for your business because of what it does – and even if you never love the policy or the agent you’ll love the benefits of carrying. However I would appreciate the chocolates!

(Cross posted)