The Importance of Insurance For Business Owners

Operating a business that is open to the public is an invitation to an accident or a lawsuit. Accidents can occur at any time, regardless of the care the business owner takes to make certain the site is safe for visitors. If a customer or client is injured at your place of business, legal problems and expenses can quickly escalate. Business owners that are not properly insured run the risk of losing their livelihood.

Whether you own and operate a shopping mall, a small business from your home, or an office in a strip mall, any number of incidents could occur to trigger an insurance claim. Havingliability insurance in effect provides protection against expenses incurred if a visitor suffered a trip or fall.

Determining the type and level of insurance

Your insurance agent will be able to walk you through the maze of insurance terms and policies available. He or she will provide quotes and ask questions to determine the level of insurance needed as well as the type of policy from which you would reap the highest level of benefit. Here are some questions to discuss with an insurance agent:
• Whether you will have employees
• The type of business you will be operating
• The location in which your business is situated (i.e., home, mall, etc.)
• Will your employees operate heavy equipment or be involved in otherwise hazardous work environments?
• Will the business be open to the public?
• Whether you have business personal property to insure

The business owner has the responsibility to disclose all potential worksite hazards to the agent. Tell him exactly what your business is and heed advice on the type of insurance policy he feels necessary to make certain you are as fully covered as possible.

In addition to having liability insurance to protect the business against a claim filed by a client or customer, the business owner will want to obtain quotes for life, health and/or disability insurance. A life insurance policy on the business owner could provide the capital needed to keep the business viable in the event of the death of the owner. Insurance provides business owners with peace of mind knowing that if there is a suit filed by an employee or client, or if they can no longer operate the business, the policy can be structured to provide an income and keep the business operational.