Small Business Insurance Protects More Than Just Your Financial Assets. Let’s Take A Look At A Potential Scenario…
A lot of business owners look at business insurance as nice to have rather than a need to have. This is particularly true for those operating an online business or working from home. The reason for this is that people often associate insurance purely with injury. In reality, damages come in many different shapes and sizes, all of which are relevant to business insurance. To better illustrate this, let’s look at the type of scenario that could easily become a reality.
What If You Fail To Deliver?
Let’s imagine for a moment that you are working as a contractor without coverage. You might be running an online company, providing documents for businesses. You might not have considered a crucial factor such as just how important your service is to the company. Often in contracts like this, you have no idea whether your service is a piece of a larger puzzle for a company or a tiny cog in a massive machine. If it’s the former, then a failure to deliver will have a massive impact on that business.
What if that’s exactly what happens? Perhaps you are unable to deliver on a project. You can’t provide the work that they desperately need. You might be able to work out a solution and fix the issue before it gets any worse.
What If You Can’t?
Perhaps you have an issue with supplies, or the cloud server with the information you are using has crashed. Regardless of the issue, you are now forced to tell the client that you can’t provide the service they desperately need. Now, if you’re insured, you can get financial support you need to fix this issue, but if you’re not covered. There’s nothing you can do.
What Happens To The Company?
The person you were working with as a contractor is now in a terrible situation. They can’t get the service they need to remain profitable or even to continue to function in the market. They are unable to claim, and so they have no financial support. The business goes under and be aware that this may extend to beyond a business issue. Business problems will often spill into the personal lives of those affected. Business failure can break relationships, tear families apart, and lead to psychological issues. It cannot be simplified as purely financial difficulty. It will hit the business owner hard, and your failure to a) deliver and b) get coverage is the reason the situation could not be rectified. The issues that a person faces now fall firmly on your shoulders.
Of course, we assumed you were the one who failed to provide the service. But what if it was the other way around? What if you took the risk on the uninsured contractor. What if you were the person that ended up losing everything and what if you were the person that suffered the most?
We hope this shows why small business insurance isn’t a maybe, it’s a must.
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