No one likes paying for insurance and that is a fact. Buying and shopping for insurance for your business is as fun as having a colonoscopy. The thing is once you have had the colonoscopy or purchase insurance for your business you do have a certain peace of mind that everything is okay.
You however might be a gambler and say I do not need insurance. I will save a lot of money by not purchasing business insurance. Well, let me tell you this is ahead I win tails you lose situation.
Remember a general liability insurance policy is normally under $75 per month for most types of small businesses.
I will explain in detail below why going naked without insurance is not a smart bet.
Crunching The Numbers
Let me start off by giving you some raw data. Almost 1/3 of small businesses experienced an event last year that could have resulted in an insurance claim.
Broken down by type they are:
Contract disputes and Customer Complaints
25% of small businesses experienced complaints from customers dissatisfied with what was provided to them. These complaints range from failure to deliver goods as promised, mistakes in work, and negligence.
Injury to an Employe
Over 10% of businesses reported an injury to an employee. A Workers’ Compensation Policy can help protect you against these types of claims. Further in almost every State Workers’ Compensation is required by law. Failure to purchase coverage can lead to large fines and even criminal prosecution.
Loss from Fire or Natural Disaster
Over 5% will experience a loss to their business from these types of events. A Business Owners Policy (BOP) or Property Insurance coverage can effectively protect your business from these types of losses.
Injuries to Customers
Around 2% of small businesses had an incident where a client claimed an injury occurred on the business’s premises. A General Liability Insurance Policy or a BOP will offer protection from these types of claims.
Not all of these incidents however turn into claims.
Roughly 9% of businesses file a claim each year. The reason this figure is lower than the numbers above is a result of a number of factors such as:
- The amount of the loss is around the cost of the deductible, so many businesses pay the loss themselves.
- There is no insurance or they do not have the correct coverage.
- Not filing a claim so premiums do not go up.
What this all boils down to is that if you are in business for over 10 years there is an almost 50% chance that you will have an incident that will result in the need to file an insurance claim. So are you willing to flip a coin and guess heads or tails with your business and possibly all of your assets, just to save a few bucks?
The Numbers Do Not Lie On Being Properly Insured.
Accidents can happen no matter how careful you are. Further, there is always the risk of baseless claims and lawsuits. The one often overlooked benefit of a General Liability Insurance Policy is that the insurance company will pay the cost of your legal defense and any judgments awarded, up to the policy limits, if a covered claim is made against you.
If you do not have insurance all these costs will come directly from you and your business. You are well aware legal fees add up fast. The worst thing is that even if you are found not liable for any judgment you will still be out the legal fees.
So are you willing to roll the dice each month to save $75 versus losing all you have worked for? Take my advice, get your business insured before you roll snake eyes and crap out.
Small Businesses must be well insured for the smooth running of their business. A well-insured business is appealing to clients because the certificate of insurance proves to them that they will be compensated promptly and professionally, in case something goes wrong.
Workers also are likely to remain employed with a business longer when that business has the proper insurance. In case they are in an accident, they can rest easy knowing the medical bills will be taken care of, in addition to income replacement for the days they are unable to work.
FarmerBrown.com has the capability to provide quotes for the hard-to-place risks and get you insured quickly and conveniently.
We have the experience to analyze and recommend the appropriate affordable Small Business Insurance Coverage. Best of all, you can get a free, no-obligation quote in minutes. If you have any questions about this or any other insurance needs feel free to contact the knowledgeable agents at FarmerBrown.Com at 888-973-0016 or go to our website for a QUOTE.
We offer 5 Star customer service and can often get you insured in under an hour.