The Hidden Cost of Doing Business
Your Business is your lifeline, protect it.
Starting a new business is no small task. Often times it’s a daunting and overwhelming experience. For a successful business you must know how to monetize your offering and how to sustain it. To say “this is easier said than done” is an understatement. As business men and women, we will go over the numbers again and again until we feel confident about the choices we have made. The problem is, sometimes this confidence never comes because we are constantly facing new challenges as a result of doing business.
One of the things that can cause business owners to fret is business insurance. Why do I need it, why is it so expensive and what does it do? Some fret over the cost and others fret over the coverage. In my experience, not knowing how insurance protects you or what drives cost can lead to a bad experience with your insurance provider. As a general rule, insurance is based on risk. Insurance carriers assess everything according to the risk they represent. This can drastically affect cost, the riskier an operation is the more expensive it will be to insure.
But why do we need it? As a business owner you will want to take every step in protecting your business. What if someone got hurt as a result of doing business? What if there medical bills were 10 thousand, 20 thousand, or more? Could your business survive paying these large amounts? This is why insurance exists; it restores the business to the same financial status as it was before a loss.
As a business owner, I suggest shopping for insurance as early as possible. If you are in the early phases of your business plan then include the cost of insurance. Planning rather than reacting will help reduce the shock factor if business insurance is expensive for you. Secondly, rely on your agent; they are licensed professionals who understand your policy. Walk through the policy with them, make sure there are no gaps, and obtain peace of mind knowing that your business is protected.
