Most business owners, young and old, look at business insurance as a necessary evil. They don’t like to talk about it or pay for it. It doesn’t help that insurance agents and companies make it sound so foreign and complicated. It’s like they are speaking a different language. It doesn’t have to be like that. I propose we embrace insurance as a tool to save you and your company from disaster if something or someone blindsides you.
You built it. Why wouldn’t you protect it? The unfortunate truth is that anyone can sue you for anything. Whether the accusations are true or not makes no difference to the attorney charging a crazy-high hourly rate. Attorneys are expensive whether you are innocent or not. Wouldn’t you want an insurance policy to cover the attorney fees instead of your pocketbook?
Businesses have exposure coming from every direction – employees, vendors, competitors, government and customers. Every business is different based on industry, size and management style . There are many variables that cannot be controlled, so it makes sense to put a financial transfer (insurance policy) in place to respond to an incident that could bankrupt your company.
Insurance is there when all the policies, procedures, and contracts have failed to slow the impending doom. I know it sounds dramatic! But it’s true. Below are a few examples to make my point.
- Crime insurance – Employee (family friend of over 20 years) steals close to $1 million dollars from employer.
Employment Practices 3rd party – Employee harasses customer in a store.
- Cyber Insurance – Faceless criminal hacks your computer system without you knowing until FBI notifies you that your information is floating around on the dark web.
- General Liability – Customer is injured when they slip and fall in your office or store.
- Professional Liability – Hair salon client alleges stylist ruined her hair, and she subsequently missed out on modeling opportunities.
Insurance makes you whole. The purpose of insurance is to put you back together the way you were before the claim. Yes, there are limitations and exclusions of which you need to be aware. That is where your relationship with your insurance agent is so important. You deserve to have an agent that is responsive who you trust. It’s imperative that you understand what insurance coverage you have, and most importantly, what coverage you don’t have. The coverage gaps will get you! Cue fireball.
– by Kristin O’Neal