There are always some pre-conceived notions doing rounds in the industry of business insurance. One cannot rule out the presence of some visible risks and some unseen or potential risks facing the business. Thinking that your business will run the way it is and carries no risk is a big mistake. This is the basic reason why many business owners do not consider it important to buy any insurance for their business. Let us take a look at some of the common myths.
My business cannot be sued and is not collectible
Every business can be sued, in case a money judgment is rendered against them. Your bank accounts, equipment and assets can be seized and you are left in the hands of a persistent attorney, wishing you had bought insurance cover.
My business corporate format will protect me
Just because your business is a part of is a corporation, doesn’t mean that you can do away with the insurance. The corporate will only protect owners, officers and individual investors from personal liability for any actions and debts of the corporation. However, there are different laws in different states and the corporate protection might prove to be very flimsy. When that occurs, you are personally liable for everything and is answerable.
My business partners are my friends
Most business owners in partnership believe that if they become disabled or fall ill, things will just work out and everything will get taken care of as the business is in a partnership. It is seen that the small businesses often do not survive after the death or disability of the main partner. Things hardly work the way expected and business partners do not take much interest in the remaining family members. Therefore, it is very essential to get the business insurance and get complete protection for you and your family.
Once you understand the truth behind these myths and realize that they are just based upon some wishful thinking, it is time to look at your business with a fresh perspective. Sit with an experienced insurer in this realm and discuss about the risks involved and the kind of insurance you should buy for your business. Regardless of the industry or the size of business, insurance is important and should no longer be considered a luxury. It is true that business insurance can be expensive, nevertheless, we need to make a place for it in our budget.