Over 90% of businesses in the United States are made up of small businesses. Small Businesses Without Insurance Take Dangerous Risks, edited by Adam Uzialko, discusses the necessity of insurance in small business settings. This Business News Daily article elaborates on the types of insurance needed for small businesses and a few tips on how small businesses can be successful when choosing their insurance. After interpreting the article, I feel this is a great blueprint and read for any individual getting ready to start their own business. This article helped me further understand many popular types of insurance coverages among small businesses.

Small Businesses Fail

It is understood that nearly 50% of all small business are likely to fail in the first five years of operation. This is a scary number for new business owners and makes the five year mark a goal for many. With 50% of these businesses failing, the answer to why is not a mystery. Businesses just starting out are most likely run by a technician, who’s experience with the products themselves is what propels them to create their own business. Although this is fantastic groundwork for a successful business, the owner needs to be familiar with the industry of buying and selling the products. Only knowledge of the product and not the industry itself is a popular reason for failure. Although this is true, lack of insurance is grounds for many small business’ demises. I would like to learn more about why small business owners set themselves up for failure by choosing to not purchase insurance. The mandatory insurances will cover a great deal of accidents and lawsuits, however I would like to understand why further steps are not taken to add security to these small businesses.

Uzialko lists the many types of insurance that small businesses should be looking into; the first being general liability insurance. This gives the prospective small business owner a foundation of coverages to review for purchase. Uzialko’s structure going into detail regarding these different insurances would give any small business owner the confidence to purchase insurances based on their business’s needs. Owner’s of small businesses may not be well-versed in the insurance world and may not fully understand which insurance coverages they need for their specific business. If I were starting a small business, insurance coverages would be at the top of my priority list for investment and using this article would help me establish a foundation of insurance coverages for my business.

Tips

Uzialko goes into many tips for small business owner’s gearing up to start their business. These tips are to determine what you need, know the risks, compare quotes, find a good agent or broker, and regularly review your policies needs. This list of tips for the prospective small business owner is a great place to start. I believe insurance is a great investment for a small business; but you must know which coverages are essential and which coverages are optional for your specific business. In addition, comparing quotes and finding a good broker can make or break a small business.

“As with the plan itself, you should consider your options for agencies – and the best choice isn’t necessarily the one closest to you” – Adam Uzialko

By including these tips, Uzialko is ensuring that the audience does not take the first deal offered to them. Uzialko states, “as with the plan itself, you should consider your options for agencies – and the best choice isn’t necessarily the one closest to you”. In situations where a small business owner is forming a deal with a broker, there needs to be other offers on the table in order to understand whether or not the deal is sufficient. In the realm of corporate insurance, this information is valuable to me because I will have to rely on mentors and more experienced brokers to form the best deal for my clientele. By understanding the basic forms of insurance coverages, corporate insurance packages will be easier to grasp.

The insurance world requires a great deal of attention to detail and caution. This does not only apply to small businesses, but also to families and corporate business. A true understanding of insurance coverages and purchasing insurance with the intention of receiving the best deal is crucial for financial success. I have learned that there are many types of insurances dealing with a wide range of coverages for different aspects of every business. Small Businesses Without Insurance Take Dangerous Risks is a great place to start to understand the basics of insurance coverages while learning a few tips on choosing business insurance.