Four safety nets for small business owners

Cloud-based backup services

Most businesses rely heavily on technology for everything from invoicing to social media connections. Unfortunately, the Internet can be uncertain at times, and you can lose your connection, experience a hardware or software malfunction, or fall prey to hackers at any time. Create a safety net for yourself by backing up your important information and systems on the cloud.

Local backups won't save you if your own servers go down, but information stored on the cloud is safe from local down times. You can back up everything from customer account files to apps data with safe cloud storage.

Professional liability insurance

Professional liability insurance protects your business in the event of claims of faulty service or of a failure to provide service. If you're unable to meet your customers' needs, this insurance will pay damages and defense costs. Professional liability insurance keeps you covered even when you don't believe you're at fault, so this is a valuable investment even if you can't imagine shorting a customer on what they ordered or failing to provide them with adequate services. Any business that provides a service should consider this insurance an essential safety net.

Access to business loans

As a small business, you may face a certain level of uncertainty that larger corporations don't have to worry about as much. You can never fully protect yourself from unexpected setbacks. What's important is that you're able to continue functioning even in the face of financial problems.

Unfortunately, small business loans aren't always easy to secure. Traditional lenders turn down as many as half of their applicants, leaving small business owners with no funds to keep their companies going. A better option to have up your sleeve is a connection to a merchant lender who can provide business loans with bad credit or other restrictions which might be holding your company back from traditional business loans.

Workers' compensation insurance

No matter how many employees your small business has, it's important to keep your valued workers safe. Most states require that employers maintain adequate insurance to cover their obligations to workers injured on the job. However, there are some loopholes that may have allowed you to overlook this safety net. Texas and New Jersey do not require employers to carry workers' compensation insurance, and in many states you do not have to insure people who work on commission.

It's important to consider the pros and cons of carrying this insurance if you have this option, though. A strong workers' compensation package will keep your company safe in the event of a workplace illness or injury, and give your employees much-appreciated protection.

With these smart safety nets in place, you can operate confidently, knowing that you have a plan in place for many common setbacks. Smart small business owners are always prepared, and these methods will ensure that you're ready for anything.