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Do You Really Need Insurance?

Do You Really Need Insurance?

There are generally three schools of thought on the purchase of business insurance: As a business owner I should discuss my business with my insurance broker and purchase the policies recommended to cover all of my operations and potential hazards. A Business Owner’s Package (BOP) policy should cover all of my insurance needs, even the ones my broker doesn’t know about. I don’t need insurance. If I buy insurance someone is just going to sue me to collect from my insurance company. Our favorite client is, of course, number 1. We offer risk management analysis services to all of our current and potential clients as a free service. What you (and we) don’t know can hurt you in the event of a claim. But what about the other 2 types? Are these ideas really so dangerous? No Policy Can Cover Everything Even if it has “general” or “comprehensive” or “package” in the title, no insurance policy is designed to cover every eventuality.  Every policy comes with some exclusions, and many of those exclusions are the result of court cases where a policy was forced to pay out on a claim the policy was never intended to cover. A healthcare organization made news in the past year when they were the victim of a data breach. Millions of patients records and personal information were exposed.  The costs of the hack would have been covered by cyber liability insurance, IF the board of directors had taken the recommendation of their insurance broker and purchased the coverage. They didn’t. Since the decision of the board to decline cyber liability insurance affected the...