“I don’t need insurance, I’m barely making any money with my new venture.” “It’s just a casual thing I do. There are no risks.” “I’m incorporated, if someone sues me, I’ll just go bankrupt, no problems.” “I want to make sure I have money in the bank before I increase my costs.” “I’m covered under my homeowners, am I not?” “The contractor I’m doing the work for will pay any losses I’m responsible for.” “I want to keep my costs down.” All these and so many more comments are heard by your Manitoba broker every day! As we are in the business of making sure people are protected, it often seems as a bit of a surprise when someone actually doesn’t want to be protected. The main reason; money. There are some inherent risks to doing business or to not having insurance (either one) and conversely, benefits to having insurance.

Risk:

Limiting Business Opportunities: Often individuals will not be able to self-insure their growth in the sense that, the investment is too large to risk an uninsured loss. Most of us cannot just reach into our pockets and replace a $10,000 theft loss to tools never mind a total loss of a $500,000 building. Without insurance, the financing required for your business growth is often out of reach.

Risk:

Personal Assets are Exposed to Loss: Many of the risks/benefits are tied together. For instance, if you are not incorporated and doing business under your personal name as many small or fledgling business do, all your personal assets including your house, car, and children’s college tuition is available to the courts to pay losses you are responsible for. With insurance, there is a significant buffer between your personal assets and injured third party. Also without the proper insurance, a significant loss can leave you financially strapped. Damaged Reputation: You are an architect, eye doctor, or a car wash, or almost any other type of business, and you don’t have insurance. One of your patrons is injured and seriously hurt, or through your operations, you damage their person or property. The injuries affect their life irreparably and there are not adequate funds to aid them through life. Their property goes unrepaired for a long period of time and their reputation is shot. Without insurance, your injured customer goes without aid. They are potentially ruined financially. The story gets into the news, and soon everyone knows if they deal with your business, they risk a ruined life. With Insurance, you put in a claim, an adjuster attends the claim, it may or may not go through the courts paid for by your insurance, and any insured loss or damages are reimbursed by available insurance. Your customer has recourse, your reputation is actually advanced as a responsible corporate citizen, and your wages/personal assets are not garnished for the rest of your life. Defense Costs Included: Depending on the coverage you select, and the type of policy you are getting, the exposure to defend yourself in court, even due to a frivolous claim or accusation may be covered by your liability limit as most liability policies provide a “duty to defend”. In a sense, for a small fee, your business is able to “retain counsel” with regards to defending yourself in court or having a legal expert review a potential claim situation.  This activity could cost you a minimum of $1000 to an unlimited maximum. Often minimum premiums for your insurance policy will be under $1000 and will provide a minimum of $1,000,000 coverage.