MONDAY, DECEMBER 23, 2013
Business insurance may seem unnecessary to the entrepreneur chasing a dream, but without it, those dreams may translate into disaster.
Scenario #1
 John opened a bakery last year and wakes up at 4 a.m. every day to make and deliver his famous Italian breads to loyal customers. John looks forward to opening his own bakery, but for now, makes his breads out of his house. While out on the daily delivery, John is involved in a collision causing thousands of dollars of damage to his vehicle.
With Business Insurance: Luckily, John had a business insurance policy which included auto coverage while out on deliveries. Because of this, John’s claim was filed and he was back on the road in no time.
Without: Unfortunately, John may be required to pay out of pocket for his car damage. A typical automobile policy does not cover personal vehicles used for business purposes. Because of this added expense, John is now that much further from opening his bakery.
Scenario #2:
Elizabeth went back to school as a single mom and began working towards her CPA. Once she graduated, she became a certified tax accountant and started a small tax preparation office out of her home. She prepared thousands of returns for loyal and happy customers. Last year, one of her customers was audited and the IRS found a major discrepancy, now Elizabeth is being sued and her business is suffering
With Business Insurance: Business insurance provides coverage against liability, which would protect Elizabeth from bearing the court costs and attorney fees.
Without: Without business insurance, Elizabeth is now required to hire a lawyer and pay thousands of dollars out of pocket for an investigation, trial, and ultimate dismissal of this case brought against her. Despite the case being dismissed, she is left with over $80,000 in attorney fees to pay on her own.
Scenario #3
Pedro trained to be a mechanic his whole life. His father was a master mechanic and grew a reputable local business. When Pedro took over, he continued his father’s legacy and maintained the shop on his own with the help of his daughter. When Pedro fell ill, he was forced to close the shop. Without anyone to replace him, the business suffered and eventually failed.
With Business Insurance: Key person insurance offered by many insurers provides coverage to the one person who is necessary to make the business run. If this person is injured or incapacitated, the monetary value of their loss can be recouped to the business.
Without: Without adequate coverage, there is nothing Pedro could do once he recovered, he would simply be forced to close the doors and get a job at another local auto repair shop.
By Matt Reynolds - Google+
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