Monday, May 11, 2009

Insurance: A good reason to never start a small business

I'm reading up on Small Business Insurance for one of our clients. And it's terrifying. The insurance industry seems like one of those carnival games where you have to toss rings onto rows of thin glass bottles.... except that each of the bottles is for a different type of insurance, and you need to have the right type of insurance for the right type of catastrophe.
I'm sure it's less dire than this - that's why I'm reading up, after all.
At first, I could digest the info - there are three types of insurance - property (including car and house), life and health. Ok, still with you.
But then i get curveballed:

1. There is something called Terrorism Insurance. That's enough to make me hide under the bed.
2. If you fear getting sued for giving bad advice and getting sued for it, you get Errors and Omissions Insurance.
3. If you are afraid you might violate an employee's civil or other legal rights, you get Employment Practices Liability Insurance
4. If you are afraid of something happening to your super-great "I never take sick days" 24-7 employee, you get Key Person Insurance.
5. Afraid of getting your ID stolen? Get Business Identity Insurance.

Afraid of anything? There's an app for that. I know that insurance provides a valuable service, but it still scares the hell out of me.

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