Insurance coverage is an expense that many small business owners might be tempted to cut back on, or even cut out totally, as they try to cut costs during this deep recession.
Business Owners are placing a losing bet if they follow that road. Insurance is a prime example of gambling. You bet the house (the insurance company) that your business is going to suffer a loss. Each policy term you place your bet. Each year the insurance company takes your money. They are betting that you won’t have a loss. What happens when the odds shift and you miraculously win? – YOU LOSE.
Sure the insurance company will pay out. That is what they do. But if you cut back to a “No Frills” policy, what do you really get. Your building rebuilt, your contents replaced. What if you don’t have business interruption coverage. Who is going to make your payroll if the business isn’t open. Who is going to rebuild the “Goodwill” if your customers go somewhere else because you cut “Extra Expense Coverage”? That coverage pays for opening at another location until yours is available for business again.
Cut rate insurance is just that – cut rate. Mundane disasters that threaten a business _ fire, theft, power outages, even someone being injured on the premises, will be covered. But the frills that are cut aren’t really frills at all. They are necessary.
Loretta Worters, Vice President for communications of the Insurance Information Institute, a New York-based trade group, said insurance may seem like a lower financial priority for some small business owners right now.
Call your local business insurance specialist, Tim Hawley, at 602-279-3100. Tim has 20 years of experience and will asist you in finding the balance of coverage and cost.
Filed under: Business Resources
