More Small Businesses Have Performed Well This Year

Improving economic conditions have led many small businesses to have improved finances over the course of the last year or more, but those steps forward so far in 2013 are above and beyond even those seen last year. As a consequence, many smaller companies may be looking to expand, but that may come with the necessity of taking on more small business insurance costs.

In all, 53 percent of companies say that they have enjoyed improved business conditions in the first several months of 2013, compared with what they handled a year earlier, according to a new survey from the financing company Direct Capital. In addition, another 21 percent of businesses said that their business was about the same as it was to this point in 2012, and just 26 percent said that they're at least a little bit worse off.

This was likely reflected in the demand for more small business loans observed by Direct Capital, the report said. Through the end of May, the company had seen five straight months of increased demand in its Small Business Lending Index, indicating that businesses are feeling so good about the way things are going that they believe they can take on potentially sizable balances.

"We have seen strong lending demand this year and now and more than half of the business owners we polled are saying things have improved this year," said Stephen Lankler, senior vice president at Direct Capital. "Those continue to be good signs for the small business economy. That said, the recovery has been described by many as slow and I think the survey backs those findings. You still have one out of four business owners saying 2013 has been worse than the previous year."

Small businesses that are seeking increased financing as a means of being able to increase their reaches in their local communities and beyond may necessarily end up having to pay higher premiums for insurance coverage, particularly if they plan to hire more workers. Bringing on additional employees will likely increase costs for premiums on workers' compensation and general liability insurance, and these higher prices will certainly have to be accounted for financially before any decisions are made. For this reason, it might be wise to shop around for the best possible deals on this coverage, while also keeping them sufficient to encompass everything that needs to be covered.