Often times, business owners have to consider ways to cut costs, but if you’re thinking about foregoing certain forms of business insurance think again. There are many myths floating around about business insurance that owners fall for everyday, increasing their overall risks tremendously.
So what are the business insurance myths you should be aware of and avoid? Let’s take a look at some of the most common myths running the rumor mill.
My Business is Too Small to Need Insurance – If you don’t have a business insurance policy and face an accident, injury, or even a loss of life directly related to your business’ operations, you will most likely “bear the brunt” and be responsible for any associated costs. For a small business owner, this could mean losing your business and having to pay from personal funds. Just because your business is small doesn’t mean it’s at risk.
Workers’ Compensation Isn’t Necessary if You’re the Only Employee – Some states, including New York, require all businesses to carry workers’ compensation even if an owner is the sole proprietor. In other states, workers’ compensation requirements will depend on the number of people you employ, the type of work your business does, and a worker’s classification (temporary vs. full or part-time).
We’ll Never be Sued – Any business and any person can be sued, no matter the size of your business or how well it is or isn’t doing from a financial standpoint. Additionally, simply shutting down your business and ceasing operations won’t protect you from a lawsuit. “In a worst-case scenario, you could be required to cover settlements or judgments from your personal assets.”
Our Business is a Safe Business – And just because your business doesn’t pose a risk of exposing employees to hazardous materials or an infectious disease doesn’t mean you don’t need insurance. Even if your line of business isn’t considered “risky” you do need insurance in the event of a random accident in which an employee is injured or one in which your organization is held liable for damages.
Do you need to update your business insurance or adjust coverages? Contact Lamb Financial Group. We are an insurance broker offering insurance options for a range of businesses such as human and social services organizations. Visit our website for more information or to request a quote.