Why Buy Business Insurance Naples FL?

by | May 2, 2013 | Financial Services

Many business owners do not understand the importance of having insurance that is specific to the business. It can be a big financial mistake to not have Business Insurance Naples FL. Without Business Insurance in Naples FL, it is possible to lose all of the assets in the business due to a lawsuit. Many personal insurance policies have exclusions for business use. That is why it is very important for business owners to consider getting insurance that is specific for businesses.

One of the disadvantages of getting Business Insurance Naples FL is the extra cost of insurance for the same amount of coverage. The extra cost is a common reason why many business owners neglect to buy this important coverage. However, spending extra money on insurance is a lot better than having no coverage at all. For example, auto insurance costs for those who drive a vehicle commercially will pay higher premiums for the same amount of coverage. Despite the increased cost, the insurance will cover claims that arise during the course of business. If a cheaper personal insurance is used, the amount that is paid by the insurance company could be zero if the accident occurred while the vehicle is using commercially.

There are some insurance policies that businesses need that are not commonly bought by consumers. For example, errors and omission coverage will pay if the business owner is found liable for financial damage caused by the product or work produced. For example, many freelance computer programmers have errors and omission insurance in case the programming code has bugs that cause a financial loss to clients. In addition, many larger companies and government agencies require contractors to have certain insurance policies in order to become eligible for bidding on contracts. Without the right insurance in force, many business owners may lose contracts due to not meeting minimum insurance requirements. Compliance with the insurance requirements can sometimes be very strict.

Business owners have several good reasons to get business insurance. It is very important for business owners to budget the money necessary to maintain adequate insurance coverage for the business. Those that do not may lose business and may subject themselves to significant financial liability.

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