Commercial Insurance: A Must of Any Business

Whether you're tossing around the idea of starting a small business, are knee deep into raising capital, or have run a company for several years, the concept of commercial insurance should be one you're familiar with. If not, it's a good idea to quickly familiarize yourself, as it can save you a great deal of financial heartache and headache should something unexpected happen. There's no doubt about it: making sure you're covered can be expensive. It is another expense when putting more money out there is the last thing you want to do. However, there are numerous reasons why you should.

Small Business

Many small business owners labor under the misconception that commercial insurance is just for the big boys. Sure, the major big box store on the other side of town needs that kind of coverage, but your small hardware store can surely do without it, right? This is a bad way to look at things. Even the smallest companies need protection. One might argue they need protection more than the big companies, who can cover unexpected issues with their capital reserves. If you look carefully, you might be able to find protection that fits even a meager budget.

Liability

If you are developing your own home business, you might look into liability commercial insurance. You don't need to have a brick and mortar store to qualify for protection. You have assets, too, even if you have little more than intellectual property at stake. If you're dealing with customers, you could be sued. Your product could be found to be defective. These snags in the road can destroy a fledgling business. Don't leave yourself open to this destruction. Be prepared and take steps to make sure you can survive an unexpected obstacle.

Larger Deductibles

If you're having trouble seeing how you could afford commercial insurance, you might want to look into plans with a larger deductible. This can allow you to pay cheaper premiums while still giving you protection against an incident that could wipe out your entire business. Of course, you need to exercise caution when determining your deductible. If it is so large that you will go into bankruptcy trying to pay it, you're in the same situation you would have been in without any coverage at all. The key is to find a comfortable balance. Talk to a broker in your area with experience dealing with companies of your size. With time and good advice, you'll be able to find a plan that meets your needs without wiping out your budget.