Is it Safe to Skimp on Your Business Insurance? 04/25/15

Having insurance may cost a lot of money but it protects you from various losses. A lawsuit or a disaster can take your business out of business. It’s your investment, do your best to protect it. There are some types of insurances that are obligatory, but it’s the other ones you should take an interest about. Depending on what business you do, on what you offer and perform, there are insurance policies that can save your business from coming to an end.

Cost vs. risk

A business owner is confronted with a lot of expenses that may harm the profit. Insurance costs a lot and even if you purchase it, you may never actually make use of it. That doesn’t mean you should skimp on your business insurance. It’s better to prevent and invest in the safety of your business than to have a lawsuit on your hands. For example, a physician or any licensed health care professional is most probably going to be at least once in their activity confronted with various claims of medical negligence. Medical malpractice insurance protects them from liability associated with wrongful practices that could result in bodily injury, property damage and medical expenses. Generally claims of medical negligence are taken very seriously by the law which usually forces the medical professionals to heavily compensate the injured party. As such, insurances are essential in this line of business.

The best example of how necessary insurance is and that you should not disregard it is the protection against financial risk. Money insurance is a type of insurance that protects against financial risk. It replaces stolen money that belong to your business, whether they were taken in transit or from your premises. It compensates bodily injury that occur to you or to your employees in care of assault or attempted assault while carrying business money as well.

Covering every possible risks your business could endure is the smartest move you can make as a business owner. Think about the fact that if your business has employees there is always the risk that one of them could have a serious accident or a long-term illness; this can lay you up for a long time. Disability insurance is the only method to avoid this nightmare. It is recommended to buy disability insurance from the first day you start your business for yourself and for your employees.
As an employer you are faced with many risks and costs in case anything bad happens and insurance is the only way to protect yourself and your business.

No matter how good of a job you did evaluating what could go wrong with your business, don’t cheap out and be safe; insurance is a necessary aspect of owning a business, so take up all the insurances you need to protect your investment.