Many business owners find it very difficult to pay for their insurance coverage needs and choose to reduce the amount of coverage they secure. Often, they will quote certain myths about small business insurance coverage as a reason to why they did it. There is little more dangerous than doing this. True Coverage
Leaving your company without sufficient insurance coverage can cost you your business and livelihood. Below are 3 commonly believed myths about business coverage.
1) A really small company doesn’t need commercial insurance. This is not true at all. Small businesses are sometimes the target of frivolous lawsuits because of their size. Some unscrupulous people view them as targets because they probably don’t have much of a legal defense budget. They will attack small companies in hopes of scoring a quick out of court settlement. The right small business insurance coverage will provide you with a legal defense to fight off these lawsuits.
2) My business is a corporation so my personal assets are safe. Not true. If a court judgment is placed on your company after losing a lawsuit, you could be found personally liable for any amount that exceeds what your company is able to pay. Good coverage ensures that the judgment will be paid and your personal assets will be safe.
3) My company leases space so I don’t need insurance. Just because you don’t own the space in which you do business, this doesn’t mean you aren’t at potential financial risk. You could be held responsible to any damage that occurs to the structure while you are leasing it. The right policy will protect you from liability and will not cost your business that much.