Most people would not
walk on a tightrope without a net beneath them. Even the
most-experienced acrobat feels better with security.
This example is similar
when considering whether or not to buy insurance for your business. Are
you willing to invest in peace of mind, or do you prefer taking
a chance without insurance, hoping that you'll dodge lawsuits that not only
disrupt business but also terminate ownership of all your family
possessions, especially if you're a sole proprietor?
I've personally seen the effects of not buying insurance coverage,
and I can tell you that leaving the home where you've become
accustomed to sleeping every night, with nothing except the clothes
on your back, is a frightening experience. That's a situation
you don't want to happen, whether you live alone or have a family.
You deserve to profit from business. You also deserve to protect
yourself and your family from potential liabilities associated with
that business. That's why researching and buying insurance is an
part of your business plan. Insurance helps to:
personal assets from loss
Provide peace of
mind as you build your empire
Qualify you to apply
for projects that require liability protection
First, you must
determine what type of insurance to purchase. Then you must decide
how to structure each part of the coverage.
Thankfully, a reputable
insurance agent who specializes in your type of business will know
the standard policy structure and be able to make changes, if
needed, for special considerations.
My first insurance policy
protection against product liability
*$10,000 for off-site
The policy cost $350 per
year. I purchased the policy from a firm that specialized in small
business coverage. My firm was located at home. As I researched
insurance policies, I overlooked contacting my homeowner's carrier.
I later learned that the
carrier did not offer rider policies, which is the common name for
coverage when a business is set up within the home, and the
insurance company insures both entities.
Insurance policy costs vary between carriers and geographic
locations. I've heard of costs between $150 and $350 per year. No
matter what the cost, coverage is worth your peace of mind.
Where do you begin looking for business insurance?
1. Ask businesses within your industry for references.
2. Make inquiries through industry associations.
3. Check large warehouse stores for insurance options. You may
qualify for a policy whether or not you're a member.
4. Call the carrier that covers your home to learn if they provide
business insurance riders.
It's easier to sleep at night once you find, review, and sign the
policy. But the job's not done. Each year you must review your
coverage to learn if more or less is a better choice.
updated regarding carriers just in case another company offers a
better policy. Be ready to change firms if it makes sense without
unnecessarily cutting corners.
Need more insurance
Tips to Keep Your Company Out of Court, Robin Gronsky, small
explains 25 ways you can stay on the right side of the law. This CD
is your insurance primer.
You won't find this
information anywhere else except on this CD.
Click here to read more about Legal Tips to
Keep Your Company Out of Court
©2006 Shirley George Frazier. All rights
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