Insurance is a business necessity at launch, says new survey

3/15/2011

With the economy making a significant rebound and entrepreneurs gaining greater access to commercial loans, many businesspeople are investing in new companies. Entrepreneurs considering making this jump should be sure to purchase insurance, as a new survey conducted by Hilcox USA indicates the majority of company owners believe insurance is a business necessity.


Nearly three-quarters of respondents (72 percent) agreed that small businesses, regardless of size, should purchase insurance to cover their investments as soon as possible. This is despite many not knowing the best way to insure their companies, with 21 percent admitting they didn't know precisely how much to insure for.

"As a small business's revenue increases, so does the level of complexity and confusion about the proper amount of insurance coverage needed to cover against risks. A lawsuit against a small business could be crippling, not only to the business itself, but to the owner's other assets, including their house," said Kevin Kerridge, small business insurance expert from Hiscox USA.

If small business owners are unsure about their insurance policies, they should consult their financial advisor to remedy the situation.