Why do I need business insurance?

Business owners often launch their business because they are GREAT at what they do.  They provide great service.  They build great products.  And they want to have greater control over their life.  However, too often the product or service becomes their focus – and they forget to act and think like a business owner.  And business insurance is left as an afterthought.

This post is intended to provide three main reasons why business owners need to stop and purchase insurance for their business.  While not an exhaustive list, these reasons are fundamental to every business – and must be considered.

1. With limitless opportunity comes with great risk…

The greater public assumes that merely by owning a business – you are printing money.  Your business card says “CEO”.  Your website lists you as an Owner.  The public thinks you have it made.  Often, this is simply untrue.

This misconception places a target on business owners, on their business, and on their future success.  Insurance can shield your company’s assets and its future from the unexpected or unintended. As a result, the business can continue to operate, grow and flourish without bearing the full brunt of the unexpected pitfall.

Growing a business without preparing for the risks it faces can result in the unexpected meaning the end of your business – a scary and disproportionate result for something beyond the owner’s control!

2. Protecting Tomorrow…

We know that most business owners are not living in palatial homes with expensive cars and private jets. But we have not acknowledged the business owner’s true realities. Payroll. Taxes. Rent.  Cash-flow AND your personal needs to merely live.  Each and every one of these requirements must be met for the owner the business to merely survive.

But what happens if the unexpected happens?  A fire.  A storm.  A client tripping on your premises and injuring themselves.  Each and every one of these creates a draw on a business’s essentials.  And can lead to their ultimate demise.

Insurance provides protection for these unexpected events – and help a business get persevere and reach its potential.

3.  You likely need it…

No business operates in a vacuum. They rely on customers, vendors, landlords, suppliers, employees… and the list goes on.  Each of these connections operates pursuant to a contract or set of laws to govern the relationship.  With those contracts and laws, come risk and requirements – which trigger the need for insurance.

Hiring employees triggers the need for worker’s compensation insurance.  Selling a service triggers the need for an errors and omissions/malpractice insurance policy.  Renting a location triggers the need for general liability insurance.  Buying a property or storing inventory triggers the need for property insurance.  Often times, statutes or contracts lay out these requirements (ie worker’s compensation insurance is required by Illinois law or review contracts for “insurance” in the headings or body).

If a business fails to have insurance, not only will they face the full brunt of the resulting damages – but they may also be subject to regulatory fines/fees and breach of contract claims – which only make the issues worse.

Conclusion

In short, insurance allows a business to launch and grow confidently – so long as it is part of a deliberate and informed strategy.  You should contact the skilled and knowledgeable team at Sidebar Insurance Solutions to make sure your business is protected now and for the long term.

Connect with us today by calling 708-942-5150 or emailing adam@sidebarinsurance.com!

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