What if Business Liability Insurance is Too Costly for Me and my Small Business?

When starting a small business, it is easy to become quickly overwhelmed with the actual expenses involved in that business's start up. After a short while of being completely up and running, the expenses involved with running the company each day or month can also quickly add up. You may have had a budget set prior to starting your small company, yet no amount of budgeting, it turns out, prepared you for the actual costs of operating day to day.

There is no reason to panic. It will take some time to learn just how to run your company each day, but treat this learning curve much like you would your first few weeks of working at a new job. There is a breaking in period to running a business, especially a small one. That company is mostly dependent upon your drive, passion and hard work which originally inspired you to make the commitment to starting out on your own.

When you consider all that you have and will put into your small business, would you want to see anything happen to it? Probably not, yet amid all the other expenses you are learning to take on and adjust to, if proper minimum business liability insurance is not among those expenses this is something that you could face. An unexpected accident or an injury to a customer or client is all it takes to incur a legal claim of negligence.

Legal fees are not inexpensive and, to a small business on an equally small budget, they can quickly add up. They can add up, in fact, to such large amounts that the business's very survival could easily be jeopardized. You may think that this is something that only happens rarely. Or, you may be thinking that it could never happen to your business.

Planning for Unexpected Expenses

You probably already have a small reserve of money earmarked for some unexpected expenses. The electric bill on your shop, for example, might be much more than you calculated. This may be the case especially during summer months, when the air conditioning is running at full force to keep customers and employees comfortable. Yet, this is something that might vary only a few hundred dollars from one month to the next.

A legal claim, or even the medical bills your company is forced to pay on an employee's injury on the job, are often far greater than a few hundred dollars. In fact, they are costs that often are relatively difficult to calculate until the situation presents itself. This is why it is imperative to carry, if not the bare minimum of liability insurance required of your business by local regulations, the most coverage possible.

Think of the expense incurred for business liability insurance as a relative bargain. You can predict how much the premium will run your company each year, or each month depending upon how you set up your business's premium payment plan. You cannot, on the other hand, predict how many thousands or millions of dollars a worst-case scenario lawsuit or accident could cost your company.

When you consider all that you have put into building your business, you do not want to see it all go after one unexpected event occurs. The publicity alone after an accident occurs on your business's property could cause your business to lose enough to be forced into closing down. If you think business liability insurance is too costly, think again. Make certain to carry the most coverage your company can reasonably afford.

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