Insurance Awareness Day falls on June 28th, and this mid-point in the year is a great opportunity for small business owners to re-evaluate insurance needs. Meeting with your insurance agent for things like updates, changes, or questions about how to protect your business and income, keeps you an active participant in safeguarding your future.
Every business needs insurance. It’s as simple as that. If it’s been awhile since you’ve reviewed your policies (or if you don’t have one at all), it’s time to do that. Don’t risk your income by failing to protect it in the first place. With proper coverage, you can rest assured that if something bad happens, you won’t be at a total loss and have a better chance of bouncing back.
Here’s why insurance is a must for any business owner
Types of damages that can happen to a business run the gamut from fire, flood or other water damage, crime, and vehicular damage. That goes for the building, the equipment, the inventory, personnel, and even reputation or ability to earn in the future. Claims filed against your business —whether you have a physical location or not —can cause severe financial loss. This includes things like malpractice, employment practices, or injury to other people’s property (even intellectual or virtual property).
Facts about insurance that might surprise you
Current statistics show a lot of differences in how small businesses deal with risk. Did you know that nearly 1 in 4 businesses (22%) don’t have any insurance coverage at all? If you think this seems pretty risky, you’d be right. Three out of four small businesses faced an insurable event in 2020 alone. Those are big odds.
Data shows that business owners aged 45+ were far less likely to carry business insurance than their younger counterparts. This number is most likely tied to the fact that starter owners carry mortgages from lenders that require insurance. Risk awareness is high in this group because so much of their future is invested. This is why it’s important to stress the value of insurance for all, so that even the most experienced, self-funded business owners can protect their investment and their legacy with adequate coverage. Cost plays a huge role — in turn, insurance companies need to keep cost within reach.
Post-pandemic research shows that many more entrepreneurs are adding insurance coverage owing to either losses from 2020 or changing costs in premiums that make it more affordable in the first place. As things continue to return to “normal,” it’s important to remember that no one knows what the future holds.
Support is available for small business challenges
For every business owner, it helps to know that building a safety net includes working with qualified professionals that can provide support. Running your company is much more manageable and scalable when it’s built on a strong foundation, and delegating tasks or consulting with an expert can add value to your portfolio. If you’re looking for a virtual CFO to help with bookkeeping and financial analysis to help you organize your business finances, reach out to me anytime.