7 Ways to Protect Your Small Business and Employees
From workers' compensation and health insurance to succession planning, these seven key considerations will help you build a secure, compliant and future-ready business.
Running a small business means wearing many hats. From managing day-to-day operations to strategizing for growth, your responsibilities are vast and varied. One of the most critical aspects of success is taking steps to protect your small business and care for your employees.
Here are seven key considerations to help ensure your business and workforce remain secure, compliant and well-supported.
1. Understand the importance of workers' compensation insurance
Workers' compensation insurance is a safety net for both your employees and your business. This coverage protects against financial loss in the event an employee experiences a work-related illness or injury. While state laws vary, most require businesses to provide this insurance from the first hire. Be sure to familiarize yourself with the specific requirements in your location, as they can depend on factors such as company age, size and industry.
2. Select the right health insurance plans
Offering comprehensive health benefits, including medical, dental and vision insurance, is a powerful way to attract and retain top talent. When choosing plans, carefully consider the coverage each option provides, as well as the associated costs like premiums and employee contributions. Strike a balance between providing robust benefits and maintaining affordability for your business and your staff.
The ADP Employee Benefits Survey 2023 found that 78% of employees feel valued when their employer offers benefits. However, the survey also revealed that while employees want less taken from their paychecks, they often have less available for unexpected healthcare costs. This underscores the importance of selecting plans that meet your workforce's needs without overburdening them financially.
3. Prioritize retirement benefits for long-term security
Retirement benefits are increasingly essential for businesses looking to build a loyal, engaged workforce. By offering flexible plans with various options and financial wellness tools, you empower your employees to build long-term security. Plus, robust retirement solutions can help your company stay compliant with evolving state mandates and avoid costly penalties.
[pullQuote]
4. Protect your assets with business insurance
Safeguarding your business assets is just as important as protecting your employees. Business insurance provides coverage for commercial property and vehicles in the event of accidents, disasters or lawsuits. Additionally, product liability insurance shields your company against defects, while professional liability insurance offers protection from financial losses due to negligence, malpractice or errors.
5. Plan for the future with succession strategies
As a business owner, it's essential to plan for the future, including the possibility of your own departure. Succession planning helps ensure the longevity of your company by preparing employees to step into leadership roles. By identifying and nurturing potential successors, you create a stable foundation for your business to thrive even in your absence.
6. Regularly review and adjust your protection strategies
Your business and employees' needs will evolve, so it's crucial to review your benefits, insurance and succession plans annually. Regularly assessing and adjusting your strategies helps ensure that you're always providing the most relevant and valuable protection for your company and workforce.
7. Seek expert guidance to navigate complexities
Navigating the intricacies of how to protect your small business can be overwhelming, which is why many owners rely on expert advisors. Accountants, attorneys and financial planners can provide invaluable guidance in their respective areas, helping you make informed decisions and manage complexities with ease over time.
Remember, employee benefits are directly linked to engagement, loyalty, productivity and overall experience, which are all factors that significantly impact your bottom line. By ensuring your employees feel their needs are met and that they're genuinely cared for at work, you cultivate a positive, productive workplace culture that drives business success.
Ready to take your business protection strategies to the next level? Download our small business owner's toolkit.
