Business insurance is a must if you wish to protect your business and lifestyle but many owners don't understand the basics of this type of protection. Here are five common myths about business insurance, and the myth-busters that you need to know.
Myth 1: You don't need business insurance unless you have employees
Truth: Whether you're managing a staff of 5 or 15, or you're just a one-man or woman show, having business insurance is a necessity for every business owner. The risks that come with entrepreneurship are not covered by your homeowner's insurance even if you have a home based business. And if you're an independent contractor in a high-risk industry, like contracting, you most certainly will need specialized protection in order to keep from putting all you've built for yourself and saved at risk.
Myth 2:A basic liability policy is all you need
Truth: For a few business owners, this may be the case. But every business is unique: some may rely on extremely valuable equipment or inventory, others may deal in sensitive data, and still, other types of businesses might come with a higher risk of getting sued. It's important that you understand the ways in which a standard policy will or won't work for your singular business and situation. Additionally, if you have employees than you have a worker's compensation and employment practices risks. You may not be required to insure those exposures but if you don't then your life savings and future earnings is. Work with an independent insurance agency - like Yennie & Jones - on the best ways to fill in the gaps.
Myth 3: You can forgo an auto insurance policy if you or your employees are using their own vehicles
Truth: Whether you have business vehicles or not, having an auto insurance protection is a necessity if you or your employees are driving in order to conduct business. Your personal auto insurance policy likely won't cover accidents or injuries that occur during the course of doing business, so don't neglect this important protection.
Myth 4: Business insurance is extremely expensive
Truth: In fact, the opposite is true: business insurance can be extremely affordable, and is a small price to pay to protect your company, livelihood and your personal assets. You've put your heart and soul into building your business and your life and a well-rounded insurance protection program will give you peace of mind so you can pursue your dream without worry.
Myth 5: Sole proprietors don't need to purchase worker's compensation insurance
Truth: It's true that in some states you can file for an exemption so that you are not required to purchase worker's compensation insurance, but that doesn't mean it's the best choice for you or your family. The vast majority of health insurance policies exclude on the job injuries and in some States like Missouri and Kansas you can be held responsible for the injuries to your uninsured subcontractors and their employees. Savvy clients will avoid working with an uninsured business just like your business should.
For business insurance questions or to help you evaluate your business' risks, call or contact Yennie & Jones Insurance Agency today.
