One of the things you might overlook as you’re starting a business (or even as you’re living life) is insurance. We tend to think of insurance as an unnecessary expense that gets in the way and provides little long-term value.
However, the reality is that insurance can be a solid way to protect your assets. As you arrange your finances, make sure you pay attention to insurance and get the protection you need.
Health Insurance
One of the most important assets you have is your health. A major illness or injury can set you back. When I broke my wrist a few months ago and needed surgery and physical therapy, the cost without insurance would have been more than $40,000. Because I have health insurance, my out-of-pocket costs are going to be closer to $10,000. That makes a huge difference to my finances going forward.
The law requires you to get health insurance, and you need to make sure that you are on top of the situation for yourself and your business. You might also be surprised at how easy it is to get health insurance using one of the exchanges.
Property Insurance
Protecting your expensive property is an important part of keeping up with your finances. This includes home insurance and auto insurance. It can also include the property insurance you purchase on your place of business. If you are a business owner with a brick-and-mortar location, you need to make sure you are protected. If a natural disaster or some other problem occurs, you want to make sure you are able to recover some of the losses. From theft to vandalism to destruction, rebuilding and replacing can be very expensive. Make sure your expensive assets are properly protected with insurance to reduce the chances that problems could ruin your finances.
If you work out of your home, make sure to check your homeowner policy to ensure that you have the right coverage for your situation. Not everything business-related is covered in a homeowner policy.
Liability Insurance
Watch out for situations of liability. This includes the way you handle being sued as a business owner and in other areas of your life. Liability insurance is important as part of your car policy so that you can cover damage to others’ property and cover injuries. You are financially responsible for accidents you cause, and insurance can help you cover those costs. The same principle applies to homeowner insurance. You want to make sure that you can afford to cover injuries that take place on your own property, and insurance helps you do that.
Don’t forget about your business insurance as well. You need to make sure that you are properly covered in the event you are sued. Errors and omissions insurance and other types of liability insurance are vital for you as a business owner if you don’t want one lawsuit to destroy your business finances. These types of policies are essential when you want to protect your assets.
Once you understand the importance of insurance in protecting your business and your other assets, it’s important that you get the right coverage to reduce the chances of losing your financial stability.
