What risk can I really face as a business owner just starting out?
We hear variations of this question a lot. Frankly, the question really boils down to this, “Why do I really need business insurance, especially as a start up company?”
Don’t you really want to ask that same question yourself?
What follows is a list of real scenarios documented with carriers across the country. These scenarios are both liability claims as well as property claims. As you read through, I am sure you’ll run across enough to make begin to understand the importance of commercial insurance. Let’s get started and follow these situations which expose you and/or your business to risk:
- A month after you open your shop, vendors begin calling you and demanding payment on bad checks. You go to talk to your bookkeeper about the problem and find that she has disappeared. You find travel magazines featuring Tahiti and deposit slips indicating that she has deposited your checks into her personal account.
- One of your employees is interviewed on television without your knowledge. In the interview, that employee calls a competitor “a sleaze ball who gouges his customers at every turn.” You get served with papers saying that the competitor is suing you and your business.
- The old coffee maker you provided for your employees in the breakroom starts a fire, destroying your leased office and the building to burn to the ground.
- A customer walks into your store, slips on a newly-mopped floor and breaks her wrist and cuts her head on a desk on her way down.
- You walk into your office on a Monday morning and find the back door wide open and all your inventory, telephones, and computers are gone.
- You meet with two clients for lunch. One of them has to leave early, and you volunteer to give the other one a ride home. On your way, you run a traffic light and get broadsided by another vehicle. Everyone in both cars is seriously injured.
There are hundreds if not thousands of examples just like this. Just pick up the newspaper of browse the news online. Don’t become a statistic due to an uncovered loss.
Are there risks assumed the minute you start a business, absolutely. Getting business insurance in place must always be a priority for a new business. A new business risks both any commercial assets as well as personal assets. Talk to your commercial agent as well as your state department of insurance for guidance.