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What Risks Do You Face Without Business Insurance
Author David Schneider | May 23,2007
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Having your own business can be the fulfillment of your dreams. You have always wanted it, and now you are working to make it a reality - or at least thinking about it. But if you are thinking about trying to arrive at your dream without business insurance, then you need to think again. The possible risks that you may face could definitely rob you of your business overnight. Here are some things that are at risk if you do not have business insurance.
Lawsuits from employees
State law requires that you have workmen's compensation if you have any employees. This enables them to be compensated for any job-related injury while they work for you. If you do not have it, then an injured employee will have no other recourse but to sue you for it. When they go to the lawyer, the state will also know that you don't have it. Keep yourself protected.
Lawsuits From Outsiders
With the lawsuit mentality of people today, they often are just looking for an excuse to sue somebody. If they do something as simple as falling on your premises and become injured, then you could quickly lose your business or a large sum of money. There is an army of lawyers ready to help them to do it, too.
You will need liability for many different aspects of your business depending on what kind of business it is. If you have drivers, then you need liability to cover them in the event of any accidents or injuries. Your vehicles need to be covered. You also need product liability insurance. This is in the event that your product ever injures someone and they bring a lawsuit against you.
Physical Loss Of Your Business
It is often the simple but unexpected things that can happen that may shut your business down for a time - or altogether. It could be something as simple as an employee leaving a coffeepot on - which burns down part of your building. Other common situations might include: a leaking pipe which destroys both product and equipment or a thief could steal your computer equipment.
In situations like this, a standard policy would protect your building and its contents. Event coverage protects you when something like this happens. You choose the form of coverage between actual cash value and replacement value. Actual cash value will enable you to be reimbursed for loss, minus any depreciation. The better way to go, however, would be with replacement value which replaces your loss with new equivalents.
Financial Loss
Following the events mentioned above, which puts you in a position of being unable to carry on your business for a while, you are now at a loss for day-to-day income. All your employees will now have to look for work somewhere else. The good news is that having two different kinds of insurance would cover you in these cases. Business Interruption Insurance provides equivalent income for those times when you are otherwise unable to perform your business duties. This covers general losses, but also specific reasons can be added to cover this break in daily activity which may be the result of power loss, your entrances to the building become blocked and employees can't get in, your supplies can't be delivered or if civil authorities prevent access.
A similar insurance, called extra expense insurance, is also necessary. This insurance allows you to be given money and equipment to set up your business in a new location allowing you to carry on as usual.
Disability Insurance
This is what you need in the event you become disabled or unable to work. Without it, you may have no income at all and your business could fail.
It is obvious that having a good business insurance policy can help you in many instances. The potential loss is almost unthinkable and recovery may take many years without it. So, if you have been operating without business insurance, or if you are ready to start your business but have not yet looked into insurance for it, then now is the time to start getting some real information about it. You can start right now getting the information you need by going to QuoteMatch.com. By filling out a no obligation form, you can quickly have your situation referred to a number of business insurance brokers, which will then send you their best insurance quotes. After looking them over, you can select one that best matches the coverage your business needs. |
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