There are a lot of people out there who do not believe that business insurance is mandatory or important enough to warrant getting. In a lot of cases, these people are influenced by what they believe to be the truth about the matter. Unfortunately, some of these conceptions are not entirely accurate.
Here are some common misconceptions about business insurance:
1- Corporate structuring will protect against people being sued. Corporations are set up to allow the “entity” to take the heat for most legal action. However, this veil of protection can be lifted at any time, leaving individuals within fully exposed.
2- Having small profit margins does not mean immunity. Some people think that if their business is small and does not make a lot of money, that no one will sue them, as there is supposedly nothing to gain. However, any company can be sued, and there is always something to find with worth, whether it is financial information or physical goods.
3- Just because people are family does not mean that they will work with each other. It is commonly assumed that when a business owner dies, then their family will unite to work out their estate and then move forward with the company. In actuality, it is rare for a family business to survive a generation, and family members rarely unite to progress.
By understanding the reality of the situation at hand, it is easy to see how getting business insurance is a smart move on your part. Being protected against the unknown gives you the edge and allows your interests to be a lot safer.