Why Buy Business Insurance?

November 14th, 2011

Avoid Financial Disaster with the Right Business Insurance Quote

Trying to sneak by without business insurance exposes your business to terrible risks. Can you really afford not to have adequate business insurance coverage? You never know when an accident will strike, or when an employee will get hurt. Not having the right business insurance can cost you and your family the business as well as your home, savings, retirement, the education of your children, and many other assets.

What if…

  • You pull a healthy tooth from your patient’s mouth, and she sues you for malpractice.
  • You business has been robbed. The desks have been rifled through, and files are missing. In your office, your desk has been robbed of business checks, personnel files, and business contacts.
  • Your secretary needs surgery and months of physical therapy to correct her carpal tunnel syndrome.
  • You arrive at work one morning to find that all of your computer equipment has been stolen.
  • One of your waiters is talking to a friend, and a client overhears them calling your competitor an “idiot,” joking that they have been known to date underage girls. Your competitor promptly sues you for defamation.
  • A customer slips on a freshly washed floor and breaks her ankle.
  • One of your employees has been stealing restaurant supplies.

Unfortunately, bad things happen to even the most conscientious business owners. That’s why business insurance is here to protect you. Getting business insurance isn’t just the responsible thing to do. It’s what earns you your peace of mind.

Many business owners pay too little and end up with inadequate business insurance. A whole other set of business owners pay too much on their business insurance. The best way to avoid either group and end up with the business insurance you need is by talking to an independent business insurance agent. They can put together a professional, no-obligation business insurance quote for you.

Risks to Your Business

You never know when things like fires, flooding, lawsuits, accidents, theft, or loss of records will stop your business in it’s tracks. But it’s key that you use resources like business insurance to protect it when things like this DO happen. It’s better to be prepared than to be pummeled by large bills afterwards.

With all the things to keep track of with your business, you shouldn’t have to add the worry of “What If…” With the right coverage, you can sleep easy knowing you’re protected.

Home-Based Business

Why insure your home business if you already insure your home? If your computer breaks, your home insurance has you covered, and if a client slips on your floor, your home insurance will cover that, too… Right?


Most home insurance policies don’t cover the risks and liabilities of in-home companies.

If your computer (or other equipment) is used primarily for business, it isn’t covered by your home insurance policy. Same goes for other business-related incidents.

Some of the most common in-home businesses are:

  • Piano or other music lessons
  • Personal Trainers
  • Tutors
  • Professional services
  • Landscaping services
  • Tailor
  • Other services

It doesn’t cost much to add business insurance coverage tailored to your setup. It’s probably a great deal less than the loss you would be facing if you were to have a claim from theft, accidental damage, natural disasters, vehicle accident or loss from employee or visitor injuries.

There are options available to you – make sure you ask your insurance agent about protection for your business… before it’s too late.

If something happens…

Do you have the right business insurance coverage, at the right amounts, to make sure you can open your doors to business quickly? There are very important questions to ask of yourself and your insurance agent:

  • Do I have workers’ compensation insurance or disability insurance?
  • If a natural disaster were to strike my business, will I be able to set up and continue operations in another location?
  • Do I have coverage for income loss if my business is unexpectedly closes?
  • If my building goes up in flames, do I have enough coverage to demolition AND completely rebuild, refurnish and restock my business operation?
  • Do I have adequate “executive life coverage” on my key employees?
  • Will my insurance cover the revenues I’ll lose?
  • Does business insurance help me pay bills if my usual revenue stream is gone?
  • Will my insurance reimburse me for the expenses I incur in getting my company back up to speed?
  • If complaints about food poisoning start coming in, will my insurance protect me? Was it an ingredient? Was it the storage? Was it the supplier? Was it hygiene? Was it prepared improperly? How long will I have to be shut down, and how much will spoil, before I can open my doors to business again? What happens in the meantime?
  • Do I have Commercial Auto insurance on my business’ vehicles?
  • What if our computers get a bug and our customer lists are lost?
  • Can the information be recovered, and will insurance cover the cost to do so?
  • If one of my employees gets hurt, do I have disability coverage to pay part of their salary if they can no longer work?
  • Am I protected from claims or actions taken in conjunction with my website?
  • What happens if the losses from a claim go over my policy limits? Should I get umbrella insurance?
  • If my employee sues me for discrimination, will I be covered? Does my Employee Pracices Liability Insurance (EPLI) cover it?

Insurance is all about the worst-case scenarios. You need to be prepared for problems of every size, so that if something happens, you, your business, and your employees won’t be left out to dry.

Anything less than full business insurance coverage isn’t adequate protection

Consult with a knowledgeable business insurance agent before purchasing any policies. If you are just launching your business, make sure you have adequate coverage before you open your doors. And don’t fall into the trap of getting too comfortable.

Many business owners purchase their policy and never look at it again. This is dangerous – if details of your business change, your policy needs to reflect the changes so that, in case something happens, your claim won’t be denied.

Set a date on your calendar a couple months before your renewal to review your business insurance policy with your insurance agent.

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