How Important Is Insurance To Operating A Small Business?
As a small business owner, you’ve invested time and resources into building up your company. But how are you ensuring that it is protected? Insurance provides a layer of security. Without it, your employees, the business, and you are exposed to potential harm. In light of recent events, it is clear that even the most well-prepared businesses can’t foresee what lies in the future.
Below, 8 business executives discuss their views on the importance of insurance for a small business.
I have formed hundreds of companies. After the small amount of money we charge to form an LLC or other corporate form, we always advise start-up clients to stop spending money on unrecoverable, fixed costs (like legal services) and save money for two things: (1) marketing (driving revenue), and (2) insurance. Without insurance, you are completely exposed and have failed to take the most cost-effective step you can take to protect your business.
Robert Reder, Managing Partner
It Just Makes Sense
Insurance just makes sense. At Generated Materials Recovery we handle industrial recycling which can be a dangerous job for our employees and our physical location. Should a fire break out or a team member be injured, it’s imperative that we have the insurance to cover those events.
Peace of Mind over Cost
In some cases, you may be required to have it. Depending on the circumstances, most types of insurance are fairly affordable and the peace of mind that comes from the protection is worth every penny.
Every Business Should Make It a Priority
Insurance is important to everything, not just small businesses! My background bias is showing. This is how I landed my first official recruiting job in the insurance industry as I could speak the language before I even joined the organization.
Katie Gillespie, Senior Recruiter/Account Team Lead
Don’t Risk It
Depending on your state and local laws, you might be required to have a certain amount of insurance (like Workers Compensation or Liability Insurance). You might think that with a limited budget it would be okay to skip a recurring payment that seems costly, but in the end, it might leave you extremely vulnerable and with an unacceptable amount of risk.
Vidya Betesh, Human Resources Generalist
Insurance Is Becoming More Vital
With unforeseen issues like our recent global pandemic, I am beginning to believe that insurance for all businesses is becoming more and more vital.
Deborah Bubis, Recruiter and Sourcer
The Worst-Case Scenarios Do Happen
No one expects the worst-case scenario to actually happen. Having a fire tear through your building or someone getting injured from a product your company made, it’s unthinkable. Still, you just can’t run the risk as a small business, because if the worst-case scenario does happen and you don’t have insurance, you also won’t have a small business to worry about anymore either.
Be Mindful of History
Important if the insurance company is able to stay around and will pay the claim. Lawsuits will be numerous in the states so better safe than sorry, just make sure you get one with a history of defending claims.