5 Reasons Your Small Business Needs Insurance Coverage

When running a business, obtaining business insurance is just one of the costs that come with it… It's a fairly small cost too if you look at it in comparison to a lawsuit or damages from a fire, which could ultimately put you out of business. The key takeaway is that running a business comes with risks and one of the best ways to manage your risks is through obtaining business insurance.

Depending on the type of business you have, you may one policy or you may need several, but running your business without some type of protection in place is just too risky. Just look at other areas of your life… To protect your car, you invest in car insurance; To protect your health, you invest in health insurance; And to protect your home or rental property, you invest in renter's insurance or homeowner's insurance…

Your health, your car, and your home are all valuable assets, so why wouldn't you look at your business as a valuable asset worth protecting as well?

For lots of business owners, mainly home-based business owners, they won't invest in business insurance because they don't think it's necessary since they work from home. They also think that it's not necessary because they have homeowner's or renter's insurance, thinking their work property will be protected...

That's one of the biggest mistakes small business owners make, and it's through no fault but their own. The damages associated with operating a business without insurance can be severe. You can lose your personal assets, and even worse, be put out of business for good.

To be on the safe side, get in touch with a business insurance provider and at least get a general liability quote. This is not only going to protect your business but it's also going to protect your personal assets, your employees, and your customers. Here's why it's so important.

Why Your Small Business Needs General Liability Insurance

Your Business is at Risk For Litigation

The moment you become a business owner, you have a big red target on your back. As sad as it is to say, there are people in the world who are constantly looking for an easy come-up, and small business owners are usually easier targets than big brand businesses.

Whether it's a customer dissatisfied with your product or services, someone slipping and falling in your establishment, or your customer information being compromised, the odds are against you as a business owner. And while your insurance policy won't prevent anyone from taking legal action against your business, it will certainly help with legal costs that come with lawsuits.

It's Required By Law

According to the Small Business Administration, if your business has employees, you're required by law to carry workers' compensation, unemployment, and disability insurance, depending on where you're operating your business. Failing to carry the proper insurance, in the event that something happens, your business could potentially face fines, cease and desist orders, and hefty penalties… All of these will cost your business so much more than what it would cost for a business insurance policy.

Your Business Looks More Credible

If you don't take your business seriously, how do you expect other people to view your business as a credible business? If you are currently running a business, that means you are running a business in the era of informed shoppers, meaning they do research on various companies before investing a dime into a company, especially for service-based businesses.

It's not uncommon for potential customers to call a business and ask questions about their services, years of experience, and, of course, if they're covered by business insurance.

Certain Contracts May Require You to Have It

If you're running your business in a rented office space, the landlord will more than likely require you to have business insurance, and it will be outlined in your contract as well. This also holds true for certain clients requiring you to have it, as well as, equipment rentals and loan agreements may require you to have it as well. Not having insurance can cost you client acquisitions and put roadblocks on funding.

You're Protected Against Business Interruptions

Business interruptions can come in many forms but it's basically anything that stops or delays your business from operating. Most businesses experience interruptions from natural disasters like floods and tornadoes, but they can also come from fires and delays in supply chain management.

Delays in supply chain refer to the saying of not putting all your eggs in one basket. As a business owner, whether you're selling products or services, you're going to have to get your necessary materials from somewhere, right? Of course.

But what if the primary supplier you use had a power outage and wouldn't be able to be back up and running for a week? That would mean you wouldn't have access to new inventory until they open back up. This is what you would call business interruption.

To remedy this situation, you would need to have alternate suppliers on standby for situations just like this. This allows your business to still operate despite your primary supplier temporarily shutdown.

3 min read

Help! My Friend Is a No Show

Email armchairpsychologist@swaaymedia.com to get the advice you need!

Help! My Friend Is a No Show

Dear Armchair Psychologist,

I have a friend who doesn't reply to my messages about meeting for dinner, etc. Although, last week I ran into her at a local restaurant of mine, it has always been awkward to be friends with her. Should I continue our friendship or discontinue it? We've been friends for a total four years and nothing has changed. I don't feel as comfortable with her as my other close friends, and I don't think I'll ever be able to reach that comfort zone in pure friendship.


Dear Sadsies,

I am sorry to hear you've been neglected by your friend. You may already have the answer to your question, since you're evaluating the non-existing bond between yourself and your friend. However, I'll gladly affirm to you that a friendship that isn't reciprocated is not a good friendship.

I have had a similar situation with a friend whom I'd grown up with but who was also consistently a very negative person, a true Debby Downer. One day, I just had enough of her criticism and vitriol. I stopped making excuses for her and dumped her. It was a great decision and I haven't looked back. With that in mind, it could be possible that something has changed in your friend's life, but it's insignificant if she isn't responding to you. It's time to dump her and spend your energy where it's appreciated. Don't dwell on this friend. History is not enough to create a lasting bond, it only means just that—you and your friend have history—so let her be history!

- The Armchair Psychologist

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