As a sole proprietor, you work very hard to build and maintain your business. It goes without saying you want to protect it.
Yet, you may not have enough business insurance. A survey from McKinsey & Co. looked at the rates of coverage in 2016. It found that about 40 percent of small business owners do not have enough insurance.
This is a significant amount. And it should serve as a catalyst for you to shore up your business coverage.
Know the Risks
You may be a consultant, freelancer, or service provider working alone. You may have a physical location or not. However, if you receive payment for a service you provide, you are a business owner.
Sole proprietors often operate small companies. As a sole proprietor, you need to make sure you have adequate amounts of business insurance in place. Without coverage, your business could suffer financially from any incident that takes place.
Here are some examples of damaging situations:
- A piece of important equipment breaks down. You may not have the funds to repair it. Your business cannot run as a result.
- Someone falls on your property. They might even sue you for medical bills. This creates a liability risk. Your standard coverage may not offer enough protection to minimize all risks.
- You have insurance, but lack workers compensation coverage. This puts your employees at risk. You might even be breaking the law by not providing this coverage.
- Someone suffers losses from a service you provide. They sue you. They could lay claim to your personal assets if you do not have adequate business insurance to minimize your risk.
- Your business faces a claim of libel or slander. Maybe your logo looks too much like another company’s. These are instances in which advertising liability insurance can help.
How Do You Know If You Have Enough Insurance?
It’s important to have adequate business insurance in place. Work with your agent. Discuss the type of business you operate. Talk about the assets your business owns. Discuss the revenue you generate.
Then, discuss risks. These include premise liability and other general liability claims. They also include risks related to the products and services you offer. Risks related to fires, vandalism, and theft are a key concern, as well.
Your business insurance agent should work with you to customize your plan. It should represent all risks your company faces. If you do not have coverage, now is the time to seek it out. It can help to protect your company or years to come. And it can give you the peace of mind you need every time.
What are you waiting for? Get covered today! Call one of our agents at 716.631.0190.
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