Why Entrepreneurs Need to Consider Startup Costs Like Insurance

Starting a small business is a dream come true for many people. You get to be your own boss, can enjoy the fruits of your labor, and can build the company as you see fit. Starting a business comes with risks, and considering the total costs, including commercial insurance, is essential.

Starting or running a business near Harrison, AR? Contact Foresee General Insurance Agency Inc.

Starting a Business Comes With Risks

The Bureau of Labor Statistics reports that roughly one in five new small businesses will fail within the first year or so. Nearly half will close shop within about five years. For better or worse, starting a small business comes with many risks.

Often, business owners must shoulder most of those risks. For example, this may mean providing the funding to pay for staff and equipment. The entrepreneur may be on the hook for the sunk costs if the business fails.

Besides being pushed out of the market by competition, businesses face many other challenges. For example, what happens if a criminal breaks in and steals or vandalizes equipment? What if a customer slips on a floor, gets injured, then demands that the business pay damages? Or what if a significant storm produces tornadoes that then cause extensive damage?

Without insurance, the entrepreneur may be on the hook for all of the above (among other things). Commercial insurance policies, however, will protect businesses from many things. It’s crucial to read the fine print of specific insurance plans, but some plans will cover theft, fire, severe weather, burst water pipes, and more.

Fortunately, entrepreneurs who live in or near Harrison, AR can contact Foresee General Insurance Agency Inc. to learn more about commercial insurance options.