Business owners, focused on building their success, can often forget to safeguard the entities and assets they’ve worked tirelessly to build. By proactively securing adequate business insurance, entrepreneurs and small business owners can diminish the impact of unplanned events such as litigation, injury, and theft to protect their business… and themselves.
One lawsuit can impact, or end, a business. If not properly insured, liability and financial responsibility ultimately come back on the business owner. This can quickly escalate professional problems into issues that impact families, personal assets, and futures. While insurance can seem like “one more cost” on top of many for small businesses, it is vital to ensure that disruptions are solvable problems and do not leave life-impacting consequences.
Adrian Wilcox is a State Farm Insurance Agent based in Largo, Maryland, and licensed in Maryland, Virginia, and DC. As a former FSC loan client, Wilcox often participates in their events, including the group’s “Capital Matters: Building Your Growth Team Expert Panel” and a Lunch and Learn session. During these sessions, Wilcox gave businesses valuable insight into this topic. Wilcox recounted four critical considerations and tips for business owners when considering insurance needs.
The most important step is to start the conversation.
In Wilcox’s experience, many business owners hesitate to inquire about protection because they are either apprehensive about cost or are unaware that protection is offered. “Sometimes you don’t know what you’re missing until it is too late,” Wilcox remarks.
He adds that business insurance can often be less intimidating, and more available than it seems. While less advertised than other insurance, business policies are available through common insurance providers, including State Farm. Initiate the process by connecting with various providers to share your unique business and start the conversation. Armed with information and real costs, business owners can begin to navigate coverages.
Explore various policy considerations.
Standard packages exist for each type of business. These insurance packages are built to consider the unique nature of the company they protect. For example, a plumbing business is insured differently than a consulting business. To create a policy that covers the unique needs of a business, additional protections can be added. Common policy considerations across the board include property damage, worker’s compensation, lawsuits, health, liability, theft, disaster, accounts receivable, fire, etc.
Wilcox notes that this decision should not solely be driven by price. Often potential policyholders consider getting protection as a “box to check” and forget to adequately allocate liability limits that protect the actual cost of their assets. In the end, insurance is most worthwhile if it can help the business owner cover all potential losses.
Protect the business by protecting the business owner.
Wilcox adds that it is also important to consider how business owners, partners, and other key players are personally insured. Life insurance and disability provide peace of mind that income can be compensated and the business can continue should the unthinkable happen.
In both professional and personal situations, gather multiple competitive quotes and different policies for consideration. With information in hand, business owners empower themselves to make smart choices for their future rather than leaving the fate of their endeavors to chance.
It’s Not Too Late to Protect Your Assets.
The only time it is too late to get insurance is after an incident occurs. Start the process now!
When in doubt, reliable agents and experts like Adrian Wilcox can help business owners navigate policies to secure the right coverage. “My passion lies in educating business owners, making protection approachable, and being a resource,” Wilcox adds.
Through institutions like FSC First, entrepreneurs can learn more about financial considerations and programs to further grow and establish their businesses. Contact us today to learn more about accessing business coaching services through our Level Up program or securing your business’s financial future.