This blog has previously underlined the importance of companies having a comprehensive business insurance policy. Even smaller firms that are operated out of an owner's home cannot be fully reliant on a standard homeowner's policy. Company-related incidents will not be covered, which is why it is well-advised to work with commercial insurance specialists to find the best policy, or set of policies, available.
Take Brandi Greygor for example. As she explained to Entrepreneur Magazine, her business, Sassy Mama Boutique, is run out of her home. For more than nine months, her company was uninsured but she finally made the investment after realizing how detrimental any loss in product would be to her.
Greygor would often drive $10,000 worth of women's and children's clothing and accessories to home parties or exhibits. According to Greygor, a $10,000 merchandise loss due to damage or theft would cost her closer to $20,000 or $30,000 in income.
The Small Business Administration's website explains that while not all policies are required by law, business insurance it is a smart investment for entrepreneurs to make. Anything from vandalism to natural disasters could hinder daily operations.
"And it's a misconception to think that structuring your business as a corporation or LLC limits the need for business insurance," the SBA explained. "While these business structures do protect the personal assets of the owner from business liabilities, relying on business structure alone to protect your assets is not a substitute for liability insurance, which covers your business from losses."
Entrepreneurs often have many things on their minds when starting a company, and a comprehensive commercial property insurance policy needs to be a part of the overall plan. That way, owners are protected for the short- and long-term.