Self Employment and Insurance
Unfortunately, the uncomfortable truth is that in the United States, more than 50% of all small businesses fail in the first four years. That’s an extremely alarming statistic. So what’s the best way to make sure you are able to take care of things no matter what happens when you first start your new venture? Is it being professional and getting your logo designed, or business cards printed, or even renting an office? Perhaps it’s making sure that you have protection just in case things don’t work out the way you expect.
Insurance can provide certain protection if you have started your own venture. A new business can be rather fragile, and if you are the sole employee and provider, then you have to do it all. From sourcing new business to doing the delivery and the billing, you will have your hands full all the time, and if you get ill or have an accident or injury you may not be able to earn at all. Getting some sort of income protection insurance may help deal with such a problem.
While considering your options, perhaps it is a good time to think over the next level of this type of insurance which is critical illness coverage. In case the issue is larger than simply a few days or weeks off work that the other insurance would cover, what if you get really ill and end up in hospital or in need of ongoing or extended care? What happens then? What becomes of your new business and your clients? How will you earn a living and pay your rent or your mortgage?
Over 77% of small businesses rely on personal savings for their initial investment. If you are one of these folks, then you have already taken a dip into your savings or more likely emptied your coffers completely to make the dream a reality. Unfortunately, this means that there is no soft landing or backstop as the cushion of savings is depleted. Now more than ever is the time to think about insurance to make sure that if anything goes sideways you have something to help while you recover.
As the old adage goes, preparation prevents poor performance. Try to have all the avenues covered now to soften any nasty surprises later on.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC