For a frighteningly large amount of small businesses, securing business insurance or having a risk mitigation backup plan is of a low priority – provided it’s even thought of at all.
According to InsuranceBee’s Annual Risk Survey, out of the one thousand small business owners interviewed, approximately 29% of those small businesses have zero contingencies in place; even though that same survey reflects 93% have financial worries over their startup, while 47% reported to have anxiety over the economy causing their business to fail.
From Errors and Omissions insurance to protect against legal action from a client to General Liability insurance for accidental injuries to Workers’ Compensation insurance safeguarding against employee lawsuits, “insurance policies are not ‘nice to haves’,” InsuranceBee’s Senior Advisor, Maureen Brogie, says. “They’re essential for small businesses. Without insurance, if someone claims them, all the blood, sweat, and tears that went into building their business could just go to waste. For most, if not all, this should be a risk that’s simply not worth taking.”
So, why are so many businesses taking that risk?
Well, for one, many owners may not even be aware of business insurance as it’s such a rarely discussed necessity – especially for young startups.
Another reason may be to avoid the monthly insurance bill in the name of saving. However, when one considers the fact that the average lawsuit for something as simple as a fall could cost upwards of $20,000? Purchasing insurance is a cost-effective option.
And for that 28% of businesses who try to put away a rainy-day amount for just such emergencies? While something is better than nothing, sadly, the same rule as above often applies – a single lawsuit can cripple a small business entirely if it’s not careful.
So, please; don’t just cross your fingers and hope for the best! Help protect your business with smart and forward-thinking insurance, so you can rest easy and focus on growth – knowing your passion is covered.
