It’s universally recommended that anyone who owns and operates a business should purchase commercial insurance. But what if you just started your company? What if you haven’t really invested all that much money into the venture? Do you really need to take on the added expense of annual business insurance premiums?
The answer to this question really depends on how much you’re willing to risk.
For instance, if you’re not too worried about how a loss or theft would impact your business then you may opt to go without insurance. But remember business insurance is not always about protecting your business products from loss and theft. Quite often business insurance is about protecting yourself or your company from being sued by people involved in an accident. It’s protection against liabilities that can occur simply because you operate a business.
The truth is legal and medical suits can very often hurt your business or worse result in bankruptcy. As your business grows this liability risk also grows to make the likelihood of a lawsuit increase proportionally. Worse there are some people or companies that will refuse to engage with your company if there isn’t protection against these legal and medical possibilities.
The good news is that it doesn’t have to be an expensive proposition particularly for new business owners or those who have invested little into their company. You can actually purchase levels and types of insurance that will cover your business liabilities but won’t cost you an arm and a leg.
For instance, if you operate your business from home you may only require a home-based business endorsement on your homeowner’s policy. This extra insurance known as an endorsement could cover the damage destruction or loss of the business equipment kept at your home. Keep in mind however that most home-based endorsements will only cover a small amount of business-related equipment but if your business requires a number of tools or equipment to operate or needs to stock inventory then it may be better to get a separate commercial policy.