Do I Need Insurance as a Business Owner? This is a question that has been debated often. I think the best way to view it is to break it down on an understandable level. Most Business owners’ biggest asset and achievement is their own company. All of the blood, sweat, stress, and long hours that you have dedicated to this endeavor can be gone in a flash without insurance. A lot of the time it’s the cost that concerns owners. I never need it or I don’t need it is how they justify not to carry coverage. Why is it that we will insure our cars, home, and life but not our biggest asset? Below is an example for you to think about related to Workers Compensation Insurance: Small Company has about 5 employees with office related exposures. They don’t have health insurance or workers compensation. Business owner believes that since he only has office staff what’s the worse thing that can happen….
Employee A goes and gets a glass of water from the dispenser and some water spills onto the floor unnoticed by the employee. Employee B gets up to go send a fax. On their way they slip and fall straight back breaking their arm. Uh Oh there is no insurance the business owner is going to have to pay for this out of pocket thus taking money from the profitability of the company. The cost to get Employee B taken care turns out to be around 20K.
Ouch! Now if the same Business Owner had had Workers Compensation Coverage, that cost of coverage would have been around 1K for the year, they could have saved 19K for that claim. That is real money that makes a huge difference to business owners of any size. Don’t leave your most treasured asset exposed. Consider the long-term benefits of commercial insurance. It’s not a matter of if it will happen.