Room for improvement in small business insurance coverage
Small business owners do not have the coverage they should, an insurance group says.
The Palm Springs Desert Sun recently reported statistics from the Independent Insurance Agents & Brokers of America showing that many small business owners are not adequately insured.
IIABA vice president of education and research Madelyn Flannagan said, “Investing in [insurance] can provide security and peace of mind as a business grows.”
But in an IIABA survey, 60 percent of home-based businesses say that they don’t have insurance. Forty percent of business owners are counting on other insurance for protection against loss or liability, and 30 percent think their companies are too small for insurance.
Flannagan emphasized the importance of small business owners’ coverage. If the business is their primary source of income, she says, owners should carry disability, life, and health insurance.
And if a business is operated out of home – a strategy that can save money on rentals or leases – business owners should closely examine their homeowners’ policy to see what is and isn ‘t covered. Homeowners’ policies don’t cover business liability, Flannagan says. But comprehensive small business insurance can be had for only a few hundred dollars a year.
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Posted: October 28, 2009
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