Small Businesses without Insurance Are Taking Dangerous Risks

s the owner of a small business who is likely very cost-conscious, it might be tempting to forgo certain types of insurance that aren’t required by law. In fact, Next Insurance found that 44% of businesses have never had insurance at all. But going without insurance could end up costing your business way more than the monthly premiums would and maybe even lead to ruin.

There are many types of business insurance, and some are required by law in certain states. For example, the Affordable Care Act requires businesses with 50 or more employees to offer employer-sponsored healthcare coverage. Failure to obtain such coverage doesn’t just expose a business to risk; it could also lead to governmental action for violating the law.

But not purchasing insurance simply because it isn’t legally required isn’t a great move. You may not be required to have general liability insurance, which helps protect your business if someone makes a claim of bodily injury, property damage or libel/slander against your business. But if a customer slips and falls on your property, getting injured in the process, he or she may sue you.

So instead of avoiding insurance, it’s best to make strategic decisions about which insurance policies your business needs and which it doesn’t. To make this call, you need to know your industry well and may even need some assistance from experts like us.

Call or email us today to schedule some time to review your policies and make sure you are protected.