Business insurance is not a luxury; it’s a necessity.
Many business owners feel business insurance is an expense they just can’t afford or they may consider it a luxury for larger, more established businesses.
This thinking couldn’t be more backward.
Business insurance, it is true, can be expensive. But it is an expense that your business – regardless of its size, sector or age, must purchase.
Insurance is important because it protects a business from closing due to a catastrophic event such as a fire, flood, hurricane or tornado. With the proper insurance, these catastrophes will only cause temporary – not total – loss.
Business Interruption insurance shouldn’t be overlooked.
But something that many business owners fail to consider is business interruption insurance. This is simply a rider on your business insurance policy that ensures that you continue to have cash flow for the duration of the closure that may be caused by a natural disaster.
Liability insurance gives you accident protection.
You can’t totally prevent accidents from happening at your school. The safety precautions you put in place merely help in reducing the risk that accidents happen and mitigate your liability for accidents happening.
Bur for sure, you want to be covered if a customer slips and falls while on your business premises or there is a product or device failure that injures someone. Business liability insurance covers accidents that occur on the business premises, product defects and mishaps that occur during normal business operations on and off premises as well as accidents involving injury in a company car. If you don’t have liability insurance, these types of occurrences can be so disastrous that they end your business.
Include loss and damage from theft in your coverage.
Businesses today have all sorts of devices, furniture, equipment and supplies that could be targeted by thieves. Replacement insurance protects a business in the event equipment is stolen, replacing the missing items and paying for repairs from damage caused by the invasion.
Shield yourself from damaging Litigation.
Practically every day we see a new lawsuit in the news because we’ve become quite a litigious society. Some states have capped judgments and have processes in place to try to eliminate frivolous lawsuits – but this doesn’t keep those who think they have been wronged from suing. Even cases that aren’t legitimate must be defended at quite a cost. And in the unfortunate instance that you lose in a lawsuit, the awarded damages could exceed your ability to pay. And – depending on how your business is structured – it may be more than your business’s assets that are in jeopardy but your personal assets as well. To protect yourself in these instances, you need to talk to your agent about business liability insurance and determine what level it will require to cover your potential risks.
Don’t forget about your personal protection.
It is a good idea, as a business owner, to have personal insurance, too. Medical insurance will ensure medical bills incurred due to an illness or injury will not wipe out your business’s assets. Even though this insurance can be costly, going uninsured could bankrupt you if you were to become ill.
How much is enough?
Coverage level depends on your business structure and the assets that your business has. Your location may even be a factor and whether your property is leased or owned. But discuss openly with your agent putting coverage in place that is adequate to cover you. Being under-insurance is only slightly better than not being insured at all.
What kind of insurance do swim school owners need?
Some industries have pre-packaged insurance with details designed around what the average business in those industries need. This isn’t so for swim schools. (Not yet, anyway!)
However, you can find those who understand the needs of sports organizations – and swim schools in specific – and specialize in helping owners configure their insurance components and levels to accommodate their business and their personal needs.
Risk Management Services can help swim schools with insurance needs offering Swim Club options and Swim Program options. There are also independent agencies – such as the Nesbit Agencies and Stratum Insurance Agency – that have expertise with the insurance needs of swim schools.
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