As a Small Business Owner, You Cannot Afford to Not Have Insurance
Posted: Jun 27, 2017
Owning a small business can be incredibly liberating and terribly stressful at the same time. On the one hand, you are free from the constraints of a “regular” job. You answer only to yourself (and your clients), and you know that generally speaking, hard work will bring in better pay—in contrast to working as an employee for someone, where hard work will often only result in having more work assigned to you.
On the other hand, there are considerations that small business owners have to address, too. One major question is whether they should have insurance for their business. When nothing is going wrong, paying an insurance premium each month can seem overly burdensome and even unnecessary.
However, remember that insurance is a vital part of protecting the business you have worked so hard to build. It’s a way to ensure your livelihood, even in the event of a catastrophe. Here are some considerations to keep in mind.
In Some Places, Insurance Is Not Optional
Depending on the state in which you live and do business, having insurance could very well be a requirement of the law. That means that if you choose not to carry insurance, you can be exposing yourself—and your business—to considerable risk.
Civil penalties, regulatory fines, and potentially even criminal penalties await those small business owners who operate their business in violation of the law. As such, carrying insurance to comply with the state law simply makes sense.
Good Insurance Does More for Your Business Than You May Think
Insurance is not just about covering your losses if there is a disaster (although it does an admirable job of doing that). A good insurance policy can do so much more to help build your business.
For example, if you are able to offer solid health insurance plans to your employees, you will find that your business is able to attract better quality workers. That, in turn, helps your business grow and prosper. Another possible benefit of insurance is the ability—depending on the specifics of your policy—to borrow against the policy as a source of capital.
Depending on your situation, there may be other benefits, as well. Ask your insurance agent about the benefits of carrying insurance.
Knowing the Costs of Insurance
Some small business owners opt to avoid insurance due to the mistaken belief that they cannot afford it. Simply put, a good insurance policy can be much more affordable than you may realize. Your needs and situation will drive the specific costs of your policies, but you may find that the premiums are much lower than you realize.
In addition, keep in mind that your insurance costs may very well be tax deductible, which cuts the “true cost” of obtaining insurance even further. Talk to your agent for more information on this matter.
Understanding Your Risk of Forgoing Insurance
Many small business owners have never actually sat down and considered what could happen in the event of a disaster. They are busy in the day-to-day hustle and bustle of keeping a small business afloat. But take a moment and consider what could happen in the event of a fire, flood, injury, or other similar event.
In the span of just a few hours, you could see the business into which you have poured your blood, sweat, and tears completely decimated. You could see your life’s work wiped out in the blink of an eye. In addition to the heavy losses you could realize, you would also be faced with the grim prospect of eking out a living when your source of income—your small business—has been eliminated.
At Highmark Insurance, we are here to help you. Talk to us today about protecting your small business.