Insurance can be tricky, both when used for personal and business means. The concept, at its simplest, is easy to understand. Insured pay for protection, if an accident disrupts their daily life. This can be protection for a business, or various elements of personal life. However, when surpassing the basic explanation of insurance, the concept and the amount that is needed hazes quite easily.
Unfortunately for business owners, the nonprofit business advisement service SCORE has found that 40% of businesses are underinsured. Worse than that, after misfortune strikes, 40% of businesses never recover and end up closing their doors for good.
Small Businesses Need Real Insurance
This insecure insurance is propagated not so much by ignorance, though, as it is by latency. More than half of US business owners claim to have insurance. However, more than 40% if small businesses believe their personal insurance is enough.
While businesses often become an entrepreneur’s life, there is a difference between personal and business insurance. Homeowners insurance does include certain aspects of small, home business protection. Yet, anything done outside of the home is usually not covered.
Plus, even if the issue does take place within the home, there are many office-related issues that are exceptions. After all, homeowners or other personal insurance is not meant to cover businesses.
The Cost of Business Insurance
The good news is that business insurance is not an astronomical expense; especially when it comes to protecting your livelihood. More than half of business owners with real business insurance pay less than $1,000 per year. Plus, with the average coverage ranging between $5,000 and $10,000, the benefits outweigh the risks significantly.
Therefore, as more people venture into the small business arena, the smart decision is to get real business insurance. This will be sure to protect business owners and their livelihood from the mounting possibilities of misfortune. Theft and liability are still an issue, yet cyber threats and other technological tragedies are also increasing. Thus, it is important that a business owner is protected from whatever might come their way.