Is insurance necessary for your startup?
March 27, 2008 by ShannonCherry
Filed under Business
Just read an interesting article over at the Boston Herald, which says that most small business owners aren’t insured they way they should be.
Above the basic liability insurance, you may need more: from workman’s comp to business interruption insurance.
And let me tell you, that business interruption insurance saved the day for my father, when his convenient store in the Adirondack Mountains literally exploded (long story) with most of his weekly deposit in it!
For weeks he had no income, so the business interruption insurance paid for that – and for a temporary store until the new one could be built.
Do you think your well covered?
Hey, Shannon!
There’s nothing like talking business insurance to get people uneasy. Do I need it? Will I need it? Can I afford it? Are all questions I hear from folks I work with.
Unforunately, I get skeptical 1. because insurance companies tend to prey on people’s fears and 2. (like one guy mentioned in the article) when you file a claim, the premium goes up.
For a tiny start-up, that increase can be a big gouge and defeat the whole purpose.
I’m lucky that my coverage is pretty inexpensive but I might consider getting business interruption insurance since I’m a one-woman show.
This is a great topic and one that alot of homebased or travelling entrepreneurs often overlook because it’s not mandatory to consider it like it is when you lease a space for your business, where it’s required.
Not too many businesses can afford to be out of commission for very long before it becomes mission critical. I’m blessed to not have needed it, but this is a great reminder for all of us.
Great post!