25- Nov2016
Posted By: Terrance
351 Views

Should New Entrepreneurs Wait Before Obtaining Small Business Insurance

New entrepreneurs are usually working with a tight budget. Since they are just getting their business of the ground, they may only have enough funds to buy tools, supplies, and promotional materials. With no established client base, it would be difficult for them to pay a small business insurance premium each month. For this reason, most would rather operate without insurance until they get more customers and a loyal following.

This seems logical, but what would happen if an incident occurs while the entrepreneur is in the process of building their business? Legal matters and accidents can occur at any time, whether you are selling a product or offering a service. Anyone with just cause can file a claim for any reason, and the matter doesn’t even need to be that serious. The cost to fight this claim is usually far more expensive than obtaining insurance for small business.

Business Liability Insurance for New Entrepreneurs

If a business owner sells someone a faulty product, or gave someone bad service, the person has the right to file a complaint and/or a lawsuit. This doesn’t necessarily mean the person is going to win, but it still costs money and time to appear in court and present a defense. If the matter is not serious, the entrepreneur may be able to afford the cost with no problem. However, if a lawyer is necessary, the entrepreneur may have a hard time paying them if their business is still generating capital slowly.

Liability insurance may seem like an unnecessary expense, especially when you are new to business. Unfortunately, an incident can occur at any time, whether you’ve been in business for 6 months or 10 years. The small monthly cost of obtaining liability insurance can save you thousands in the long term. The protection you will receive will cover accidents, negligence, errors, and claims (false or warranted).

Health Insurance for New Entrepreneurs

New entrepreneurs may have the longest working hours of any individual. They are usually up pretty early and they will work well into the night if they need to complete a task. This lifestyle can be hard on the body and mind, and it can cause health problems over time as well. Even if the person is in good health, it would still be a good for them to obtain health insurance in case of an emergency. When a person is working this hard, they are usually not aware of the issues that may be going on in their body.

Insurance Quotes for New Entrepreneurs

Small businesses started by new entrepreneurs may only have one to five employees. Insurance quotes for new businesses with few employees are generally affordable. If you are a new entrepreneur, you will need to obtain insurance quotes from several companies to get an idea of what you should be paying. This will allow you to make an informed decision so you can protect yourself as your new business grows. You can always learn more at the TruShield Insurance website.

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