Fallacies of Insurance Need by Business Owners

Business owners, from bakers and pool services to IT consultants ask the same question, “Do I need business insurance?” The answer is always the same, “YES!” No matter the rationale, no matter the explanation, the bottom line is every business needs insurance. Yet, many business owners offer fallacies of why their business doesn’t. .


“Nobody will ever sue me.” Which can also sound like, “I don’t make any money, and you can’t squeeze blood from a stone.” I set up an LLC or any other statement of my business isn’t worth suing.

Any business and everyone can be sued. LLC’s can be broken. Once a judgment is rendered, a persistent attorney can file a judgment lien which doesn’t go away. Assets can be frozen or seized and wages garnished.


“It’s a corporation, they can’t get me.” Is another one we hear time and time again.

Incorporating protects the officers and owners from actions or damages against the corporation under most situations. However, that corporate shield can be pierced or even stripped and a business owner held liable personally. Without doing a case study, the smaller and newer the corporation, the more likely this could happen.


‘If something happens to me, it’s no big deal.”

Most businesses don’t survive the death of a principle. Often, the business is dissolved to pay off obligations. Banks may get nervous and escalate loans or cut credit lines, employees may leave.

Insure your business and your peace of mind. It’s a small price to pay for taking care of the risks associated with owning and running a business. Pull your head out of the sand and understand reality vs. fallacy.

Maximize Broker Support

Have you asked your commercial insurance broker this important question?

Today, we’re going to discuss a concept, an idea, which can have a significant impact on your business, and isn’t covered in a policy, but does include your licensed insurance professional. It’s not a rider or any type of coverage or has any premium associated with it. Instead, it’s about how to maximize the support you receive from your broker.

Having a board of directors is often reserved for those Fortune 1000 companies. A board of directors is a group of business professionals brought together and is paid to advise the senior management of a company in determining policy and direction of that company.

Most small businesses cannot afford to pay for the advice and counsel of a board of directors. Yet, often, this is when a business owner needs some outside eyes and input the most. It is possible to build an advisory team dedicated to helping you with your business.

Everyone talks of customer service and going the extra step to provide more value to their clients and customers. Use this to your advantage and create an advisory board, a board of directors if you will, for your business. There are a number of professionals, including your commercial insurance agent who should be willing to help you grow.

Your CPA, Attorney, and Commercial Insurance Agent provide the nucleus of the advisory team. Your banker, financial advisor, and perhaps a key vendor or two rounds out this board. It’s your business, you determine the when the group meets, the agenda, and what you wish to accomplish with your team of advisors.

Your commercial insurance broker will be a key component of your new advisory team. Have him or her help you put the team together. If no one else will to do it, perhaps its time to interview the replacement vendors who will help you and offer that level of service.