Hands protecting business buildings to illustrate the concept of business protection
Suanny Garcia
By: sgarcia
Read in 9 minutes

Ready for the Unexpected? Invest in Business Protection

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If you’re reading this, it’s not too late to invest in business protection.

After all the hard work, dedication, countless sleepless nights you’ve poured into your business, the next logical step is protecting it. There are many reasons why you might need to have a business protection plan for your business. This can involve your staff, premises, goods, customers, and even your ideas. Here we will show you how to protect your business and why.

What is business protection? What are my options?

For starters, business protection is widely recognized as insurances that help protect a business against possible financial losses when illness or death affects the owners or their employees. Business protection can also be used to ensure the ability of business owners to repay a loan in similar circumstances. In a nutshell, insurance is pivotal to your business, even Camino Financial’s own Kenny Salas commented on The Top 5 Reasons You Should Insure Your Business.

There are many ways business protection can help your company. Merely getting insured can offer loads of benefits for your business, and there are plenty of protection plans to choose from. Consider this range of business protection options to choose from provided by AMP Services, a leading life insurer and retirement services provider in Australia and New Zealand.

  • Business expenses cover: If you’re unable to work due to illness or injury, you can receive funding to help repay your eligible business expenses such as business rent and power or to help cover the cost of a temporary replacement for you in your business. 
  • Key person protection: If you or a key person is unable to work due to illness or injury, you could receive a monthly benefit up to an agreed value (maximum $10,000) to help keep your business running.
  • Shareholder protection: If you or your fellow shareholders are unable to work due to illness or injury, major trauma, disability or death, shareholder protection could pay a monthly benefit up to an agreed value (maximum $10,000). 
  • Debt protection: If your business has debts, you may not be able to continue contractual repayments if you or a key person became disabled, died or suffered a specified major trauma. With Trauma, Life or Disability insurance you could receive a lump sum payment at an agreed amount to help meet your business’ debt obligations.

Life happens, and these options will ensure that life continues to happen for you, not to you any of the aforementioned unfortunate events. What if your business is in a risky natural disaster zone — that’s for you Californians, Hawaiians, and South Floridians — what happens in the event of a natural disaster, such as an earthquake or flood? There are some insurances that cover the loss of property — buildings, equipment, etc. — but what about the money you lose during the time your business is closed? Make sure your insurance provides a clause for this as well.

Other Benefits of Having Business Protection

Having insurance can also improve your credibility for future clients — they know they’re covered in case anything happens because you’re covered, too! Not to mention, it’s a huge relief for prospective employees. The law requires that you carry workers’ comp, but you should also consider offering disability coverage, even if you have to charge your employees for a portion of the cost.

Plus, in the instance your business receives a lawsuit (from one broken contract, one unhappy employee, or other endless reasons), without insurance, the cost of legal defense is often unsurmountable and can quickly run your business to the ground.

Aside from insurance plans, the benefits of protecting your business with equipment and software are next up on the business protection list. Take for example, if you own a trucking company and have to keep your trucks parked in a yard. Having a security camera to keep a closer eye at potential lurkers or thieves, can prevent a huge loss for your business. It quite literally happened to a trucking company based in South Florida, who wished to remain anonymous. The business owner was keeping an eye on the cameras and was able to catch the thief first-hand, call the cops, and prevent another huge loss for his business after suffering from a loss that moved him to purchase the camera in the first place.  

Where to Go to Get a Business Protection Plan and Other Protection Features

Whatever route you choose to take after you’ve done your research, you may need several different insurances from different providers or one comprehensive package deal. We recommend getting quotes from several sources such as State Farm Small Business Life Insurance, which allows users to request a quote based on his or her respective state, and offers options for business continuation, key employees, employee benefits, and key employee incentives. You can also request information on Farmers Insurance key person life insurance, or even go to a bank such as Mass Mutual, which offers options like estate equalization, succession planning, in addition to others offered above.

Your options can be overwhelming: it’s a good idea to use a tool to compare simultaneously different quotes from several insurance companies. Sites like NetQuote pulls up quotes for a wide array of insurance providers based on your business’s location, number of employees, and other basic information you provide.

Next up: Although insurance is key, business protection is not limited to insurance. It can also take the shape of security cameras, cybersecurity, checking the Personal Property Security Register (PPSR) before buying expensive machinery for your business — to make sure the machine is debt-free —, and securing yourself against fraud.

That said, security cameras help track down anyone who intends harm on your business, whether it be a midnight thief or an untrustworthy employee, as we have seen in the real case above. If you have a business that can benefit from recordings, consider investing in a camera. Depending on the resolution and depth, cameras can range anywhere from $99 to as much as $2,599, and everything in between. We advise you invest wisely depending on what your needs are and how much you need to see.

In the internet era, cybersecurity is as important as insurance. If you’re a small business owner who doesn’t want to spend all insurance budget on cybersecurity, Comodo is a great option when it comes to a low-cost security solution. Small businesses enjoy free antivirus, free and paid SSL certificates, free internet security, mobile device management, firewall protection, security for POS systems, and many other convenient services. A basic Internet Security Pro plan can range from $39.99 to 95.98 yearly.

 

To sum up, instead of looking at business protection like an additional expense or having the mentality that insurance companies normally take from you, consider it as what it is: protection for the business you worked so hard to build, grow and maintain.

We hope this article changed the way you think about business protection or inspired you to research more about how to protect your business. Besides protection, remember there are many other ways to make a smart investment in your business: learn here how to invest in technology or how to invest in digital marketing. Spending a portion of your profits in your business in areas like these can guarantee your success in the long run.

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