When you buy insurance, you’re buying a promise. It’s a guarantee that, if something terrible happens to your company, your carrier will help you restore it to health. But occasionally, it can be tempting to doubt the worth of insurance due to the myths surrounding it.
What is Insurance?
Insurance acts as a financial safety net, helping you and your loved ones recover in the case of a disaster like a fire, theft, lawsuit, or car accident. When you purchase insurance, you’ll receive an insurance policy, a legal contract between you and your insurance provider. Then, when you file a claim, insurance compensates you if your plan covers the loss, which almost always does.
1. Price – Another reason you may not want to buy insurance is if you lack the cash flow to pay for premiums. If money is short, you probably want to prioritize and pay for necessities first, such as rent/mortgage, clothing, utilities, and food, before purchasing insurance.
2. Possible Scams – Although insurance is not a scam, some shady businesses might try to trick you into buying it from them in a fraudulent way. Cons involving beneficiaries, fake contracts, premium diversion, or fee churning are a few examples of typical insurance scams. But if you get the product from a well-established, respectable insurance company, you should be more than safe from any type of financial harm.
3. A Hassle – While it is true that insurance does take some maintenance, it is worth it. Plus, you can always contact a trusty insurance agent, (Like us!), if you’re ever in need of any assistance!
Why it is Good:
1. Financial Security – Insurance acts as a cushion in case risks turn out poorly, and things take a bad fall. If a family member passes away, life insurance can provide for the family’s needs (funeral expenses or time to grieve outside of work). It is the same for a company. Thanks to business insurance, a business may continue operating even if a crucial employee leaves or an important piece of equipment fails.
2. Essential for Loans – Lenders require you to have insurance. Think about it. It makes sense. It’d be bad for the bank if your business suddenly caught on fire and you had no way to rebuild and, as result, no way to pay them back. So go and acquire the funding you require to maintain your business, and while you’re at it, enjoy the benefits of insurance. With it, your ideas will have the money to take the next step, or your already established small business will be capable of obtaining what is necessary to develop and compete with its rivals.
3. Compulsory in Some States – Sometimes insurance is the law! Take Wisconsin, their auto insurance is required, and with good reason.
4. Peace of Mind – Take risks! Be ambitious! Don’t stress so much about the consequences because insurance has got your back!
It makes sense that so many business owners attempt to avoid thinking about insurance because it can be scary, boring, and occasionally downright irritating. However, whether they think about insurance or not, hopefully, it’s always there, allowing them to take risks as it patiently waits down on the ground with a safety net just in case!