Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Why my company needs insurance

Published on March 6, 2013

Many who start or run a business do not think about insurance. When they do, they find rationalizations why they do not need insurance for their business. Sometimes, this decision rests on the cost. However, what these business owners do not realize is the potential cost if they do not have business as well as personal insurance. This may include interstate insurance and, for some, agri-business insurance.

 

Insurance is required on many levels. Property insurance covers you should someone break in and destroy the building, equipment or items for sale within the building. Storms can also damage and destroy. These are not costs you want to handle out of your own pocket. Insurance is needed in case someone is injured on the property. This can happen to farmers as well as retail storeowners.

 

Some proprietors of minor businesses figure their operation is too small to attract lawsuits since there would be no money to gain. However, a judgment against an owner does not get dismissed and can be re-instated. A lawsuit may also go after personal assets–such as garnishing wages. Furthermore, business equipment may be seized and sold, effectively ending the business.

 

Filing as a corporation only provides certain protections and these can be removed by the court. This is more likely to happen with a small operation than with a large business. The court may come after personal bank accounts, homes and vehicles. Being a corporation is no excuse not to carry insurance on a business.

 

Death of an owner or partner often becomes a quagmire. Remaining partners may wish to take over the business, but taxes and other costs may, instead, mean a business will be dismantled and sold. This may be true regardless of the wishes of all parties originally involved. Insurance can protect partners and heirs by providing insurance money to cover attorney or court fees, taxes or even a buyout.

 

There are a host of reasons a businessperson requires insurance for their business. Fire, flood, outages, robbery, storms and even economic downturns play havoc on businesses. The right kind of insurance protects the owner, the family and employees.