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Small Businesses Advised Not to Skimp on Insurance Coverage

Insurance coverage is an expense that many small business owners might be tempted to cut back on or even forgo as they try to cut...
February 26, 2009

Insurance coverage is an expense that many small business owners might be tempted to cut back on or even forgo as they try to cut costs during the recession. They're making a bet that they won't need the coverage, but it's a bet they could lose according to the Insurance Information Institute. Loretta Worters, vice president of the group said insurance may seem like a lower financial priority for some small business owners right now. "They're facing all these challenges today: rents are rising, financing hard to get," she said. "Things are daunting to them, but one thing they have to think of is the whole issue of being underinsured," noting that Spring floods aren't too far off in the future, to be followed inevitably by tornadoes and the hurricane season. And there are the more mundane disasters that can also threaten a business - fire, theft, power outages, even someone being injured on the premises.
 
The Insurance Information Institute has information on its site, www.iii.org/individuals/business. It explains different kinds of general business coverage. The National Association of Insurance Commissioners, which represents state insurance officials, also has a Web site, called Insure U for Small Business at www.insureuonline.org/smallbusiness. Information about flood insurance can be found at the federal Web site www.floodsmart.gov.

Insurance Industry Advises Small Businesses Not to Skimp on Coverage (AP 2/23/09)