The economic meltdown of 2008 wasn't just hard on personal budgets; it was also hard on businesses. Small businesses across the country have felt the pain of the recession and large businesses in certain industries, such as travel, have been equally impacted. Now, without the cushion of economic improvement or small business loans to fall back on, many business owners are looking for ways to cut costs.
As a small business owner, you may be one of those who is struggling to stay afloat right now and, as a result, could be considering canceling your insurance coverage until your revenues rise. But canceling your insurance coverage in a tight economy when your business income is falling is tantamount to throwing all of the life preservers away on a rusty, hole-filled ship.
Without your insurance coverage there to put your business back together after an insurable incident and without the cash reserves to replace the benefits of the insurance policies that you cancel, you could end up losing your business after a fire, theft, flood or accident. With insurance and an affordable premium, you have valuable benefits that can keep your business afloat after a disaster, allowing you the possibility of remaining open until the economy improves and your profits snap back.
There once was a time when a business owner could consider taking out a loan if he or she did not have sufficient insurance following a disaster but financial institutions have recently become very restrictive about their lending policies. Even if they weren't, the interest and fees associated with a loan, combined with the burden of paying back the principal borrowed, can be devastating to a business, even in the best economy.
Insurance is a benefit that one must keep in both good financial times and bad. With a commercial insurance policy backing you after a disaster, you can ensure that your business is able to remain active. If you have questions about the types of Minneapolis business insurance policies you should consider, stop by or give us a call at 651-264-1230.