Why Your Business Needs Insurance

People come up with all kinds of reasons why they don’t need insurance: my business doesn’t make money; you can’t squeeze blood from a turnip. I’m incorporated, so I’m already protected against liability. I trust my partner/clients/family not to sue me, so why bother?

Why bother, indeed? The truth is, all these rationalizations are just that: ways business owners talk themselves out of additional expenditures. But just like you wouldn’t own a car without insuring it, and just like you’ve probably got some kind of insurance on your home, your business needs the same kind of protection.*

Beyond how much sense it makes to protect something that’s valuable, there’s also a chance you could lose business opportunities if you’re not properly insured. One of my clients owns a residential cleaning company. She recently tried to break into commercial cleaning. She’s done great business for years and her clients love her, but when she started approaching restaurants to see if she could take on projects for them, none wanted to take the gamble. Why? She didn’t have insurance. Without it, they weren’t willing to deal with the consequences if something went wrong on her watch.; it would’ve cost them too much in time, money and reputation. In the end, the restaurants chose someone else and my client got insured.

But what if the thing that’s keeping you from getting insured isn’t any of these excuses but rather that you don’t know how to find the right insurer? It can be difficult to pick an insurance agent, and to be sure you’re not getting fleeced.

Before you take your first step, be sure to read this article. It explains the differences between insurance agents and insurance brokers. Different types of insurers are better equipped to meet the needs of different businesses.

After that, go to your state’s insurance department website. This will be your best resource for all insurance-related questions and concerns. You can find quotes and comparisons, buying tips, and more. Find your state’s insurance department here.

And remember: insurance agents are there to work for you, not the other way around. Always contact at least five agents to be sure you know the range of prices available. At each office, ask for a current, valid agent or broker’s license, as well as customer references. If they’re reluctant to give these out, you know something’s wrong.

Use these tips, along with the resources listed below, and you should have no problem getting the insurance you need at a price you can afford.

http://businessinsure.about.com/od/insurancecompanies/bb/chooseinsco.htm
http://businessinsure.about.com/od/insuringyourbusiness/tp/purchcheck.htm

*Oh, and to the person who thinks their business is too poor to insure, take note: everyone and every business can be held accountable. And judges can wait. Once a money judgment has been weighed against you, your wages can be steadily garnished, your equipment seized and your assets high-jacked. So, yeah. Get protected.