Insurance – Part of a Better Business Plan

The importance of business insuranceThose who own a business should be prepared to face any kind of trouble. Insurance can be extremely useful as it will give you the protection for your business and your personal assets.  We choose to have insurance in our personal life, so why not include insurance with our business?

Some insurance companies even have the experience in dealing with customers from all around the world. They offer insurance for big companies and small businesses. They will even cover the self-employed.

For example, if you are running a publishing company, you can cover all the properties your company have such as printers and other tools you own in the company. That is the property coverage that is provided by the insurance. There is more coverage you can take advantage of depending on your business needs.

You can look at what services the insurance companies offer and for what type of business each of the packages is for. If you have just started your company, in most cases you can have a consultation session to discuss the kind of coverage that is best for your business. There will always be the perfect coverage even for a limited budget. You have employees under your responsibility? You can get employer’s liability insurance and make sure that your company will be protected against unforeseen circumstances.

If you think that your business does not need insurance, then make sure what product or service you provide won’t get you in trouble.  If you are self-employed, then you need to make sure that you protect your personal assets.  There can be instances where your personal belonging can be brought into a lawsuit depending on your business setup.  Business insurance can be inexpensive, but should be on your checklist.  Don’t forget to protect yourself and your business from potential setbacks.  When you are creating your business plan, make sure to outline your insurance needs.

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14 comments
DC @ Young Adult Money says June 11

Insurance is VERY important for small businesses, but also important in our individual lives. It protects from big financial hits (like an unexpected surgery). I know that you can get insured for pretty much any business…for a price.

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Thomas @ Your Daily Finance says June 11

People hate insurance until they need it. The only problem I have with some insurance companies is that they don’t seem to ever want to pay out. Its like pulling teeth with them. I agree that insurance is important there needs to be a better way to help people especially if your business is robbed or burned down etc.

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Greg@ClubThrifty says June 11

Insurance can feel like a waste…until you have to use it. Trust me, I’ve seen everyday for the past 9 years why life insurance is important. I’ve also had to use it on my car a time or two. Business insurance would also be something that one should consider.

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John S @ Frugal Rules says June 11

This has been something we have been needing to take care of. Thankfully it’s just the two of us and we really don’t produce a product, but we do need to secure general liability insurance to simply cover ourselves.

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Matt Becker says June 11

Great reminder. This is something I’ve been considering with the blog, as I really don’t know much about the liability I’m exposing myself to. Have to do some more research there.

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Daisy @ Prairie Eco Thrifter says June 11

Insurance is so important. I hate seeing businesses (and individuals) without that end up in a bad situation. Unfortunately it happens all too often.

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AverageJoe says June 11

I love it when people used to tell me that they didn’t need insurance. There’s nothing better than walking around all day with a bullseye on your back and nothing to protect you from the arrows.

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Greg@Thriftgenuity says June 11

As they say, everyone hates insurance until they need it. There are very few scenarios where it is not a good idea. And it is always a good idea to do research on your exposure and whether it makes sense for you. Thanks for the resources.

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Jake @ Common Cents Wealth says June 11

I think many small businesses overlook insurance and think that it’s not necessary. It can be extremely important because a lot of times small businesses are pretty volatile and one bad event could end up shutting down the company. Insurance will help protect against this.

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Sean @ One Smart Dollar says June 11

I agree insurance is extremely important for most businesses. Anything can happen and there are always people looking to take advantage.

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Lindsey @ Cents & Sensibility says June 11

I’ve been thinking about starting a small business and put some of my side hustles underneath it – like mystery shopping, basement suite rental, and the blog for when (or if) it starts yielding money.
Insurance was always at the back of my mind but sometimes it’s hard to know where to start. Thanks for the post!

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Redshade says June 11

Insurance is a form of protection. Protection from the unknown. Whether getting personal insurance or business insurance make sure you get it sooner rather than later. Do your due diligence and check out several known companies before making a choice. Remember the cheapest is not always the best.

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thepotatohead says June 12

I’ve yet to make any sort of claim on any of my insurances. Been car and home insurance claim free (knock on wood) , but I know that if I ever need to use it I’ll be happy I have it. I think you just need to balance coverage amount and annual cost. It’s all a risk game. Odds are eventually you’ll need it, and if not then that means you’ve had really good luck.

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Jenny Smith says August 15

Always get insurance. Take the time to discuss your needs with an agent who is familiar with the laws and requirements in your area. They will know if there are any unique coverages that you should consider. The money that you spend now could save you thousands and potentially millions in the future.

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