You’ve worked hard over the years, putting in the time and effort learning the trade from others and working for various employers. Over the past year or two, you’ve often wondered if it’s work the risk to venture out on your own and be your own boss. You’ve checked building locations, met with lenders to discuss the necessary financing required, and did your research to ensure yourself that your new business venture will be a success. Nowhere along this path was insurance ever a part of the equation.
Wait, you mean you’ve quit your previous job and financed your family home against the chance this business really takes off and not once have you thought about the insurance protection you need. Of course, that’s right, the bank manager mentioned something about making sure you have adequate insurance limits on your new building to cover the business loan. In fact, that was a condition of the financing being made available. Seems this insurance must be a pretty important element!
We realize you’ve got plenty of start-up costs, budgeting and cutting corners in the first couple of years may be crucial to getting this new business off the ground level, but planning to meet with a professional insurance advisor is a smart investment of your time and money. It’s not about making sure the bank is satisfied that they’ll get the money back from their investment in you, purchasing the right commercial insurance coverage is about ensuring your business continues if something happens that could cause you to lose it all. Is it really that important?
Three years into business sales are booming, the local community cannot get enough of your products. In fact, items are selling off the shelf so fast you’re even considering expanding to a larger facility and maybe even hiring additional staff. Until that night. The night you were awakened from your sleep with a call there had been some sort of commotion at your business downtown, the fire trucks were on scene but chances didn’t look good that they could save your building. It appears some faulty wiring may be to blame. It can’t get any worse right? You’ve called your insurance company and reported the incident, that salesperson a few years back sold you a policy that covered everything you asked for, everything you said you could afford based on your budget and other expenses, everything but except those few coverages you declined because this sort of thing would never happen.
Consider what you would do without a Loss of Income or a Business Interruption insurance under your commercial policy. This coverage would ultimately protect you during the period of downtime and lost sales that your business heavily relies upon to meet your bills, order product or pay staff. It would give you the means to realize your business would see another opportunity, a chance to continue everything you’ve worked so hard for all this time.
We understand if you’d like a do-over on your insurance purchase for the business, take the time to meet and discuss what’s really important with one of our Erie Mutual advisors who can offer the professional advice you really need and deserve as a valued member. Ask questions and make sure that your insurance company offers the coverage that protects you against the big losses, but also enables you to get back up once you’ve been knocked down. Live to fight the competition another day!
Article Written by Darcy Johnson
Erie Mutual Insurance Manager – Sales, Marketing & Business Development
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For just a few dollars a day, you can purchase Commercial General Liability insurance, and avoid the potential pitfalls that can hurt your business temporarily or even entirely derail it, should a serious claim occur.
Your insurance policy isn’t meant to be an out of the box, one size fits all coverage. In fact, your policy should be as distinct and unique as your home, farm, auto or business requires to ensure adequate limits and full protection.