For most of us it’s monkey business and we don’t need business insurance.
If we don’t own a business, a business might own us. We have all either wanted to own a business, have owned a business, or currently own a business.
Owning a business is like exercising. No pain no gain.
It’s tough owning a business.
Owning a business reminds me of a story told to me by Mrs. Demmer when I was in the second grade in New Richland-Hartland-Ellendale-
“Now children,” said Mrs. Demmer, “here is a wonderful lesson from the life of the ant. It’s an example on how we should live our lives. Every day, the ant works all day. Every day, the ant is busy. And in the end, what happens?”
I answered, “Someone steps on it.”
It was one of those right answers that was wrong.
Owning a business can seem like that sometimes. Occasionally, it feels as if you had been stepped on.
Mind your own business. We have all heard that. Sometimes it comes across as “mind your own beeswax.” If a person has his or her own business, he or she should be proud. The entrepreneurial spirit is what made this country great.
I talked to someone who lost a business building and its contents due to a fire. That was a bad experience. She had no insurance. That made it a disaster. She is a good person and a hard worker, but that was of no advantage without insurance.
She was no different than an ant that had been stepped on.
Running a business involves a significant investment of money, time, and heart.
What you need to go into business is financing, a business plan, a mission statement, high hopes, and insurance.
You don’t need beeswax insurance, unless, of course, you are in the beeswax business. What you need is business insurance.
A business owner needs things like liability insurance, property insurance, and worker’s compensation.
General liability insurance covers legal hassles that might arise due to accidents, injuries, or claims of negligence. There is bodily injury, property damage, medical payments, libel, slander, and the cost of defending lawsuits. Product liability is a coverage that protects a business in case it produced a defective product. Bad beeswax. Professional liability is another coverage that is often needed. It covers malpractice, errors, and negligence. Sometimes this is referred to as errors and omissions coverage. All liability limits should be as high as possible.
If you have a home-based business, your homeowners policy doesn’t generally cover your business claims. You’d need to add riders and may require additional policies to make sure you are adequately protected.
Commercial property insurance covers your property for things such as fire, wind, flood, and crime. Higher deductibles lower the premiums. Business interruption insurance covers the loss of income that a business suffers after a claim while it is either closed or in the process of being rebuilt. It helps pay those bills that refuse to go away even when a business is unable to operate.
Workers’ compensation is a type of insurance that provides wage replacement and medical benefits to employees injured in the course of employment. The rates for this form of insurance vary greatly according to the type of business.
You might want to investigate a BOP. It’s a great dance, but it’s also an insurance package. A business owners policy is like ordering a hotdish instead of ordering meat, potatoes, and vegetables in separate plates at your favorite restaurant. It gives you what you want at a lower cost. Business owners policies combine typical coverages into a standard package that is generally offered at a reduced premium.
Your lender might require life insurance and disability income insurance to be in place. Even if it’s not required, it’s a good idea. It keeps the business going when you’re not there.
Every business has its unique risks. Make sure yours are covered. Most of the claims you might have will be unique ones.
Review your coverage regularly. Talk to your agent. Discuss changes to your business and how they affect your coverages.
I once had an agent who said that I was smarter than Einstein. They (I’m not sure who “they” were) said that Einstein was so smart that only ten people in the entire world could understand him. My agent said that no one in the entire world could understand me.
He was wrong. I found an agent who could and still does understand me. He knows what coverages I need.
Small businesses are what make this country great and what make big businesses possible.
What do you do best–sing, dance, tell jokes, watch televised football, eat hotdish, nap, or buy insurance? Your talent likely doesn’t lie in the realm of purchasing insurance.
Find a good insurance agent to help you.
An independent insurance agent will not make you feel like an ant.
Proper insurance will allow you to run your business and to stride the world like a Colossus.
And still have the time to mind your own beeswax.
Read more in our Consumer Guide to Business Insurance
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Can Products Liability Save Football
Business and Commercial Insurance (Includes Video)
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