As a small business owner, being under- or uninsured can cost you your company and land you in jail. Greg Bivona, a retired insurance industry executive who now helps entrepreneurs as a SCORE mentor, recalls a 2005 case in which a Bloomfield, Conn., trucking company owner met both those fates when one of his uninsured dump trucks caused a catastrophic accident that resulted in 5 fatalities.
That owner was found to be willfully negligent, but business owners are frequently unaware that they are insufficiently insured. “A lot of people don’t understand the pitfalls and risks [of being under-insured],” Bivona says. “Often they minimize what they should have, they go cheap. I understand why; I was in the business. They’re between a rock and a hard place. But you don’t want to go too cheap and have exposure.”
The start of a new year is a good time to conduct an annual re-evaluation of your business insurance coverage. If your staff, office space, or business has reduced in recent years, youRead More »from Why you should start the year with a small business insurance re-evaluation