Why You Should Never Do Business Without Insurance

Business plan? Check. Bookkeeper and business cards? Check. Website? Check. Entrepreneurs often have all of the standard fixtures in place when they start their business, but far too often, they leave out a very important element: business insurance.

While entrepreneurs are known for taking risks, operating without business insurance is not a risk that any business owner should take. Not having business insurance can make all the difference between being able to weather a business storm or having the business you sacrificed and worked so hard for over the years blown away by a disaster.

Business insurance is something that entrepreneurs tend to hear about here and there, but it is not something that is discussed in the small business community as a non-negotiable – something that people cannot do without. As a result, a lot of businesses do without it.

We get it. Getting a business off the ground and keeping it running is expensive. All of the expenses that are necessary to keep things going add up, so hearing about any additional expense is enough to make you throw your hands up in despair. “I’m already just barely staying afloat. I can’t add another bill to my books!”

We live in an opportunistic, hyper litigious society that will drop a lawsuit on you quicker than a flash, especially if they think you have some money – and most people assume that a business owner has money.

Perhaps their gripe against a business is valid; the business owner made an error that cost the customer resources or caused some type of harm or pain, or there was a data breach, and the customer is deserving of some level of compensation. Or, perhaps people may file a frivolous lawsuit against a business, hoping for a big payday. Then, there’s the case of disaster: your office or shop can catch fire, or a natural disaster can rip off your roof and damage all of your inventory. In either case, you need protection.

Business insurance protects a business in case customers experience any harm at the hands of your company or in case you suffer loss as a business owner. It is coverage that you need before things go wrong, not something that you acquire after you find yourself in hot water as a business owner.

Various types of business insurance coverage exists:
- General liability insurance
- Commercial property insurance
- Data breach insurance
- Business income insurance
- Workers’ compensation insurance
To discover which types of protection your business needs, consult with business insurance providers. Accidents and incidents can happen at any time. When an active business insurance policy is in place, the financial consequences of potential lawsuits, injuries, harm, etc. are covered so that your business assets are not wiped out by these unfortunate events. Without this type of coverage in place, you would be responsible for covering these expenses out of pocket.

Best of all, business insurance might not be as expensive as you think. Some businesses could be covered for liability for less than $40 per month. Be sure to price out the different coverages you need with several companies to find a policy that offers the best value for your needs.

Not only will having an active business insurance policy give you peace of mind and save you some stress, but it increases the credibility of your business and offers an added level of protection for both you and your employees. Therefore, do yourself and your business a favor: acquire business insurance before the storm comes.