Within the first year of a business operating, about 1 in 5 startups will fail.

However, this doesn’t have to be your business. You can do a few things to protect your livelihood, including getting insurance for small businesses.

While it is not always required by law, there are still many benefits to getting startup business insurance. Keep reading to find out why it can actually help your business succeed.

Increase Credibility

The first thing that business insurance policies can do is improve your business’s credibility. You’ll be able to provide this proof of insurance to your customers, making yourself a more legitimate business despite being smaller.

Your customers will know they’re working with someone insured, giving them more peace of mind. In some industries, like construction, having insurance may even be required before you can start working.

Find and Hire the Best Employees

Having business insurance will also ensure that you can find and hire the best-talented employees. Hiring the right employees can help your business go from a startup to an enterprise, but no one will want to work for you if they’re not protected.

There are some insurances you’ll need to have before you can hire any employees, and you may need particular types of policies if you’re in a certain industry, like contracting or construction.

Protect Your Customers

Your business’s insurance will also protect your customers if something goes wrong. You’ll need to have a business owner’s policy.

A business owner’s policy combines your business liability and property coverage to help protect your business. That means if you have a customer slip at your place of business, your insurance will help pay for their medical costs.

Save You Money

While the business insurance cost might be expensive upfront, it will help you save money in the long run. You’ll be minimizing your business’s losses and using a risk management strategy that could protect your business from having to close.

Claims and lawsuits against your business can add up, and it could be much more expensive than the cost of the insurance policy.

If you’ve never made any claims to your business, you could actually have a lower insurance rate when you renew as well. To minimize your chances of needing to file a claim, ensure you have contracts for every business deal you do.

In addition, train all of your employees and ensure that they have a safe environment to work in. Conducting regular training and providing a safe environment for both them and your customers will minimize the number of accidents that could happen at your business.

Find Business Insurance for Startups Today

These are only a handful of the benefits of business insurance for startups. There are many more. But you’ll only be able to enjoy these benefits if you find the right insurance provider who will be on your side.

Request a quote today and learn about the different insurance policies we can set up for your business.