It Just Takes One Accident to Place Your Entire Business at Risk

Posted by on Jun 4, 2015 in News | 0 comments

It Just Takes One Accident to Place Your Entire Business at Risk

The threat of a lawsuit is around every corner and the unfortunate reality is that it is inherent with every employee you hire, customer you serve, or client you sign.  There is some part of your business that leaves you exposed to a lawsuit bankrupting both you and the company no matter how small your business is.

With that being said, I wanted to provide reasons why every business needs to protect itself against risk with the proper types of insurance – here are seven:

  1. It Just Takes One

All it takes is one accident – a broken contract – a disgruntled worker – to place your entire business at risk. Let’s say your company gets sued for negligence – even if you win, it can easily put you out of business simply because the cost it will take to mount your defense.

  1. Personal Injury Happens

You are open to personal injury liability claims every minute of every day if you own property where customers come to do business. If they happen to fall on your business premises and you’re not insured, you are liable for medical bills, lost wages, pain and suffering and other expenses that will come out of your own pocket.

  1. A Flimsy Corporate Shield

Many small business owners use a “corporate shield” thinking that they have protected their personal assets from any business liability claims or judgments. This is far from the truth and there are circumstances where that protection doesn’t stand up in court. Without business insurance, you could literally lose everything you own.

  1. Thinking Exclusions Apply

Any employment liability claims may be excluded from a general liability policy. Property loss may be excluded if you have a commercial liability policy. And it is unlikely that your business assets are covered if you are a home-based business owner with homeowner’s insurance.

  1. Losses beyond Your Control

Would you be able to replace them today and get back to business if you walked in tomorrow to find your office had been robbed and every computer was gone?  If you don’t have insurance to help replace what is lost, losses from theft, natural disaster, and other accidents could bankrupt your business.

  1. Reckless Driving Accidents Happen

Most business owners believe that the auto insurance policy that covers their personal auto will cover them if they are driving their car on company business.  You could find yourself paying for someone else’s pain and suffering out of your own pocket for the rest of your life if this isn’t true and you are in an accident where you’re at fault.

  1. Depending on Other People’s Insurance

Let’s say that another person causes an accident which ends with a car coming through the front window of your storefront and destroying your merchandise. Their auto policy – if they have one – might cover some of the damage and replace products but it might not cover or provide enough coverage to compensate you for lost income while the shop has to be closed for repairs.

Waiting until something happens or procrastinating while you figure out whether or not you can afford to purchase business insurance is never a good option – the real question is – can you afford not to insure your business? Contact me today for a free quote.

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