What would happen if you, a student skydiver, tell your instructor that you wish to make your jump without a parachute? Of course, your teacher would refuse on legal as well as practical grounds. You would get exactly the same reaction from mentors and lenders if you proposed doing without business insurance.
What’s the Big Deal About Insurance?
It probably makes sense to even the most skeptical among us that certain types of companies need protection against property damage or liability if someone were to become injured. Of course, a construction company or restaurant would need to be protected in the event of fire, storms, theft or injury. But is the same really true of small, home-based enterprises or stores? Couldn’t you take the money you would spend on premiums and better use it to start and run your company?
The one-word answer to this question is “no.” Regardless of how micro or macro your operation is, you need to be protected. In fact, the law requires it in most cases. Furthermore, banks and other lenders simply will not give loans to parties who seem unstable and vulnerable – and that’s exactly what you would be if you did not have the proper coverage.
What Does Business Insurance Protect Against?
If any of these scenarios could possibly apply to you at any point in time, taking the opportunity to compare business insurance options makes sense for you:
- You are sued for malpractice.
- One of your staff needs carpal tunnel surgery and months of physical therapy.
- Your office is broken into and all of your equipment is stolen.
- A customer slips in your driveway on her way to your office to get her taxes prepared.
- One of the products you manufacture causes injury to a customer.
- You are forced to close for weeks because of weather, natural disaster or other issues beyond your control.
- You fire an employee and are sued for wrongful termination.
If even one of these incidents were to occur, it could lead to tens or even hundreds of thousands of dollars in legal fees and other costs. Having the protection of a good business insurance package can mean the difference between surviving and being bankrupted in a sea of debt and legal problems.
No one looks forward to paying their business insurance premiums. Nevertheless, failing to have adequate coverage could leave you hurtling toward the ground without a parachute. Take time to research policies that meet your unique business needs as well as being affordable. You might be surprised at how relatively inexpensive they can be.