No doubt you try to run your small business inexpensively, cutting costs wherever possible. Maybe you've managed to start with low rent, used office equipment, and free software. However, the one thing you shouldn't overlook is the need for commercial insurance. Consider five excellent reasons your small business needs commercial insurance. 

1. Legal Contracts

You may also need commercial insurance to cover situations not protected by your landlord's insurance. The owner of your building may have a policy that only covers the basics, not the contents of your office. 

Do you intend to apply for business loans? The lender may require you to carry a commercial insurance policy for the length of the loan. 

2. Lawsuits

Any business is a potential target for a lawsuit. Some claims may be legitimate while others are false, but regardless of the lawsuit's merit, it will endanger your finances and the future of your business. 

For example, does your business fully comply with all federal and state laws for access for those with disabilities? If someone sues you, commercial insurance could help you navigate a difficult time while keeping the business afloat. 

3. Work-Related Injuries

There's no predicting when and how an injury will occur at a worksite. Don't think you have to own a construction business or a factory to worry about injuries. Injuries can also happen in accounting offices and florist shops.

Don't risk your business and your employees' health by operating a modern company without the proper insurance. Without it, you might have to close your business to pay for a work-related injury. 

4. Professionalism

Some of your potential clients may only enter into contracts with businesses that have commercial insurance. Those clients are looking to protect themselves. If you don't have the necessary insurance, you send a message that your operation isn't on the highest professional level. 

Commercial insurance is a low-cost means to upgrade your business immediately. If you think you're too busy to apply, think again. You can find applications online and quickly apply for a free quote. 

5. Obtain and Retain Employees

Perhaps the only difference between the offer you make to a prospective employee and the one made by your rival across town is that your competitor offers employee health insurance. The difference is noteworthy. Today, people look for job security in an increasingly insecure work environment. Offering health insurance makes your job offer instantly more appealing.

Having insurance can also help retain your current staff. People working without insurance will often continue to apply for other jobs until they find one where they will receive insurance. An employee insurance program will keep you from suffering constant employee turnover, which slows down productivity and can impact your bottom line. 

Commercial Insurance is a Modern Necessity

Don't think of commercial insurance as a luxury. It's necessary, just as internet communication is essential to the modern business environment. No matter how many specialty tools you need for your particular work, you'll find that often the most handy is your commercial insurance policy.