By Naira Alamilla, Independent Insurance Advisor PRO, PACCGA
There are two major insurance categories: Commercial Lines and Personal Lines. Your auto and homeowners insurance are considered Personal Lines which covers individuals. On the other hand, Commercial lines provides coverage for “many kinds of insurance products designed for businesses”.
According to the Insurance Information Institute, “There are over seven million small businesses in the U.S., ranging from construction firms to grocery store to home-based businesses. All have one thing in common: Without the right insurance coverage, each could be wiped out by a disaster or a lawsuit. In addition, almost all businesses are accountable for the safety of their workers and bear responsibility for injuries suffered on the job.”*
We, entrepreneurs and small business owners, are risk takers. This is what separates us from the rest of the workforce. We take risks and persist in hopes that one day we will all become successful business owners of a profitable company. However, insurance companies sees or defines “risk” differently. For them, “risk is another word for peril and refers to things that can go wrong. Crime, vandalism, fire, a personal injury lawsuit, a computer virus, equipment breakdown… death or illness of a key employee- the list of adverse event which can cause economic harm to your business or organization goes on.”**
In order for us to have a profitable and stable business, we need to make sure we are taking all the steps to make sure we are minimizing the “likelihood of things going wrong, a concept known as loss control.”** But obviously, no matter how hard we try there are things that we cannot control and having the right insurance coverage protects you from having to pay thousands or millions of dollars out of pocket and wiping your retirement account or other savings or investments.
As the weather is getting nicer and as we ramp up our business activities/transactions, please make sure you have the proper business insurance coverage tailored to your business; there is no one-size fits all policy. Your business insurance policies should be reviewed at least once a year to make sure it is adjusting to your growing business. Please contact your insurance agent to make sure you are properly protected. Should you need a second pair of eyes, I am always here to help.
Have a fun and profitable summer!
References:
* https://www.iii.org/fact-statistic/facts-statistics-commercial-lines
