When you start your own business, the main focus is getting things started. That often means going without necessary items in order to make sure the business gets a strong push out of the gate.
New (and even some seasoned) business owners will often go without to make sure their hard work isn’t for nothing. One area where it is easy to cut corners is insurance. The policies entrepreneurs often leave on the table are the very ones that could be most helpful. Here are three overlooked policies every business owner needs:
1. Workers Compensation
If you have a small business or even a large one with a lot of payroll, it can be tempting to file an exemption or waiver with the state, and leave yourself without workers compensation coverage in the event of an accident. This is not the best decision.
As a sole proprietor or new business owner you may be the only employee your company has or you may be one of the hardest-working employees. What happens to your company if your hardest-working employee is unable to work due to a work-related injury?
If you think your health insurance will cover you, think again. Many health or medical insurance policies will exclude coverage for on-the-job injuries. If you are injured on the job and unable to work for any length of time, will your business survive? Will your family suffer financially?
Solution: Add yourself to the worker’s compensation policy. In most states there is a cap on owner/officer payroll (find out more here), so the premium investment won’t be as much as you think. You could also talk to your insurance broker about adding a rider to your health insurance policy to cover on-the-job injuries if you don’t want or need a workers compensation policy.
2. Health Insurance
With the government-mandated health coverage no longer required, many business owners are no longer purchasing health insurance coverage for themselves or their families. While this coverage may not be necessary for young, healthy families, you never know when an off-the-job illness or injury may occur.
There are many ways to purchase health insurance as an individual, including the government exchange, through a state fund, an insurance broker, or through a professional association. It may be even less expensive to put a plan in place for your entire organization, depending on size. Studies show that companies offering health insurance benefits have a higher rate of employee retention.
Solution: Talk to your insurance broker about health insurance options for you, your family and/or your business. Health insurance coverage is a great way to safeguard your financial future.
3. Life Insurance
Life insurance is one of those things that people think only old people need. After all, a young, healthy individual shouldn’t need it, right?
The truth is, everyone needs life insurance. It is hard to know when your time will come, and if you haven’t purchased the coverage, it won’t be there when your family needs it the most.
There are several different types of life insurance policies available to individuals, including whole life, term life and universal life. The type of coverage can greatly affect the cost and coverage available. Benefits from these policies can be used to help create a more secure financial future for your family, and guarantee your business may continue without you if you pass away.
Solution: Talk to your insurance broker about life insurance or key person insurance for your family and your business. The fact is, the longer you wait to purchase life insurance, the more expensive it will be. Now is the time to purchase this valuable coverage.
At Hayes Brokers, your business is our business. Contact us today to schedule a free, no-obligation risk management analysis to discuss current and future coverage options.