It can be expensive to leave out insuring your small business if you’re an entrepreneur or small business owner. Courts usually rule in favor of the customers and public opinion tends to be partial towards claimants more than brands or businesses. There are many situations where not having insurance as a safety blanket can cost you dearly, in terms of money and reputation. Let’s explore some disastrous situations like this and discuss how insurance can help small businesses overcome them.
What to Expect If You Don’t Insure Your Business
1. High Expenses in Case of Theft.
If expensive equipment is stolen from your shop and you aren’t insured, you’ll have to swallow a significant loss for the items that were stolen. On top of that, your company will have to spend money to purchase replacements for the same. When combined, all these costs add up to be quite a pretty penny. This could be easily avoided by insuring your shop’s items against theft. That way, the insurance company would pay to source and purchase the replacements. You’ll have the same stock back on the store’s shelves soon, at no extra expense to your business.
2. Someone Hurts Themselves on Your Property.
An astonishing amount of money is spent by shops and other retail outlets to settle cases related to customers injuring themselves on the premises. It can go up to $100,000 in some cases. The odds aren’t in the business owner’s favor, either. According to the Occupational Safety and Health Administration (OSHA), 9 out of 10 customer accidents are a result of some form of negligence. Stores are liable to pay for the cost of any damages caused in such a case.
That means if someone hurts themselves on your property, and you’re uninsured – you’ll be forced to cover the medical costs out of your pocket. Plus, there’s a chance that there will be a messy interaction between you and the individual, which can lead to bad publicity. But if you’re insured, it’s the policy that will take care of the medical costs and there won’t be any messy altercations to deal with.
3. Damage Due to Fire
There are many situations where a fire can suddenly spring up. It could be due to faulty wiring or a short circuit. Regardless of the cause, a fire can be ruinous to a business. It can lead to the mass destruction of goods and even force the shop to shut down during a busy season. If your inventory gets burned down, that will be a huge expense for your shop. The store will have to replace the items. This will also lead to losing out on normal business and many business plans will have to take a backseat. If an event like this occurred during the holiday season, it would affect bonuses and even holidays.
Having insurance in place helps you avoid all this. The store will be reimbursed for the cost of goods lost as well as the business lost during the time of closure. The repairs can be finished quickly and business can resume as normal. Plans won’t have to be sidelined.
There are many such examples and innumerable case studies out there with horror stories ready to make any small business owner’s hairs curl. It’s better to opt for insurance for protection. Here are a few things to keep in mind while doing so.
- At the very least, get general liability insurance. This protects you from costs associated with physical injuries experienced by customers, libel, and more. It’s also one of the least expensive types of insurance and is especially beneficial for low-risk businesses.
- Many small-business owners are fearful of expensive policies that could break their banks. But what they’ll have to pay out will depend on the nature of the business. Low-risk businesses that are new can opt for a business owner’s policy. This combines many policies to create a single low-cost package. Similarly, there are many other options suitable for different businesses. Don’t let the fear of paying premiums stop you from hopping on a consultation call to find out more information.
- Finding the right insurance partner is important. Small businesses should seek out partners that are receptive to their issues and easy to communicate with. Many have been in situations where they hire an agent, only to regret their choice later. Spending time, looking for recommendations from trusted sources in similar industries, and doing the research is important to finding the right partner.
This is where we come in. Gonzalez Insurance is a family-run business that treats each client like family. We invite each individual into a real family, with shared values, understanding, empathy, and trust. We want our clients to know that no matter what, there’s a group of people who definitely and without question have their back. If you’re a small business owner and you need to safeguard your business for the long haul, then get in touch with us.