Starting a Small Business May Trigger Need to Review Your Insurance

When you're wrestling with the challenges of starting a business, it may seem that insurance should be far down on the priority list. And there's no question that a sound business plan, good location, quality employees, and adequate capital can help make the difference between profit and loss.

But as a new business owner, did you know about these three ways insurance can help your company grow?

• By helping you attract and keep good workers

• By helping to provide funds to further your plans and pay off obligations

• By helping to protect your premises, equipment, and vehicles

Group health insurance

A business that offers health insurance has a major advantage in competing for qualified workers. Now, more affordable small business health insurance is available to companies of any size. There can be direct profit and loss benefits, too: health insurance premiums paid by the business may reduce payroll taxes and business income tax.

Life insurance

You're the honcho, the go-to person — but what would happen if you weren't there to go to? Life insurance helps make sure your obligations will be taken care of, from paying off business loans to providing financial security for your family. Your insurance agent can also show you how to use life insurance to fund a supplemental retirement plan for yourself and key employees, or a buy/sell plan that lets someone buy your interest in the business later on.

Commercial insurance

Ask your insurance agent about commercial insurance to protect your capital assets, from computers to delivery trucks. You should also make sure of having ample liability coverage in case of an adverse legal judgment. With the right insurance, your new enterprise will have a valuable safety net.