• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • 100 Words

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

4 Good Reasons Why Every Business Owner Should Have Insurance

By Enero Febrero

If you want your business to be successful, it’s important that you have adequate insurance. Even if you’re a small business that’s just starting out, you still need it. And while you may think only larger businesses purchase it as a luxury, this couldn’t be further from the truth.

Here are four good reasons why it’s important for business owners to have insurance:

Life is Full of Surprises

You never know when a tornado or flood might occur that causes catastrophic damage to your business. In fact, any natural disaster could strike or your business could even catch on fire. Without insurance, you’re stuck wondering how you will pay for the damage, whereas with insurance everything will be covered.You may think your business budget is tight now, but imagine what would happen if you had to come up with $5,000 to $10,000 to get your business back up to code?

Someone May Get Hurt on Your Establishment

Accidents can happen at any time. Imagine if one of your customers slip and fall and seriously injury themselves while at your establishment; you’re responsible for paying for their medical care. With insurance, your policy will cover any funds that need to be given to the victim. Without liability insurance, you could find yourself throwing your own money to them for medical bills, pain and suffering, legal fees, and more — a financial nightmare that your business may not be able to recover from.

Company Vehicles Need to Be Insured

Cars are expensive. Imagine one of your employees getting into an accident or someone stealing one of the company cars — and another expensive nightmare for you to deal with. If you have insurance, however, you’ll avoid the stress because all you have to do is call your insurance agent and they’ll take care of everything required to get your company a replacement car on the road as soon as possible.

Maintaining Business without the Key Person

Most of the time, it’sthe knowledge of one or two key people who keep a business successful. Key person insurance helps a company stay on top if a critical employee dies or is unable to work for a lengthy period. This type of insurance provides the funds needed to keep your business afloat until the critical employee returns or you find a suitable replacement.

Closing Thoughts

Unexpected events occur all of the time — which is why it’s important to have insurance. After all, it makes little sense for business owners to risk all of the time and money that they’ve invested just to save a few dollars. The bottom line is that insurance is an investment every business needs to make regardless of its size. Don’t make the mistake of waiting until it’s too late to consider your insurance options.

Photo Credit: David Hilowitz

October 2, 2015

Comments

  1. 1

    Jayson says

    My sister’s business had no insurance then, which made it hard for the business to bounce back because it had nothing to depend on and it was too late, so it closed down. Now, my sister had a new business again and she made sure it has insurance and has learned lesson from the previous experience.

The Question of the Week:

How is your investment portfolio doing this year?

View Results

Loading ... Loading ...

Recent Posts

  • Grandfather Says: Net Worth and Real Value
  • The Top Daily Deal Sites on the Internet
  • Proper Financial Planning for Individuals With Irregular Income
  • 14 Things You Should Never Spend Money on While Traveling
  • 18 Amazing Facts You Didn’t Know About ATMs
  • Black Coffee: Chunk and Run
  • 100 Words On: Why Tracking Your Net Worth Is So Overrated
  • Six Ways to Create a More Professional Social Media Presence 
  • How to Get Great Deals with Drugstore Coupons
  • 11 Ways to Ensure Your Summer Vacation Doesn’t Bust Your Budget

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. The 6 Most Valuable Grocery Store Products
  2. 2. Series I Savings Bonds Are Now Paying 9.62%; Here Are Their Pros & Cons
  3. 3. 25 Examples of Shrinkflation That No Longer Fool Consumers
  4. 4. 7 Big Reasons Why a Roth IRA Isn’t the Best Way to Save for Retirement
  5. 5. 3 Ways That Great Sleep Helps You Get Richer
  6. 6. What’s the Fastest Way to Pay Down Your Mortgage Early?
  7. 7. How to Save Money on Dental Care So You Won’t Go Broke at the Dentist
  8. 8. Historical Gold & Silver Benchmarks for Wages and Commodity Prices
  9. 9. Tip Inflation: We’ve Got Nobody to Blame But Ourselves
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2022 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2022