"Dirty Harry" Knows Nothing About Business Insurance

When I hear one of the most famous movie passages from "Dirty Harry" (1971) in which Clint says:

"Did he fire six shots or only five? Well to tell you the truth in all this excitement I kinda lost track myself. But being this is a .44 Magnum, the most powerful handgun in the world and would blow your head clean off, you've gotta ask yourself one question: Do I feel lucky? Well, do ya, punk?"

... I always say, "Ya know, I really do not feel that lucky, sir."

And then I think, am I just a big wuss?

But, after I convince myself that I am merely being prudent, I think about my business life and how Clint's famous line, "Do ya feel lucky, punk?" should NEVER render into one's thought process.

It is always better to be safe, and have insurance, just in case things go sideways.

There are various types of insurance that every business should contemplate. I have listed what I feel are four of the most important:

1. WORKERS COMPENSATION

Actually, I believe you MUST have this and to not have it is illegal. This covers you if any co-workers get hurt. I can see the various incarnations of business owners who say, "How the heck could one of my co-workers get hurt in my cupcake shop?" Trust me when I say this, when humans are involved, they can get hurt anywhere... and they will.

This is simply to cover you if things go wrong at your place of business: accidents, negligence, costs to defend such things, just "generally" when things go wrong. What happens if someone gets hurt on your property, the old slip and fall; that is General Liability.

This, to me, is the lightning rod in the country today. Employees saying they were done wrong by a manager or co-worker or that working for you was an un-safe or un-friendly work environment. These costs can add up. Former co-workers will accuse you of everything under the sun because they don't want to work any longer or they feel they have been done wrong by you or someone at work.

Of course, there are plenty of other types of insurance that should be contemplated depending on your chosen field, like auto, home insurance (if a home-based business), business interruption, etc...

Often times these insurance prices get steep when added up, but they are nothing compared to what it will cost you should a lawsuit arise.

You simply must have these; it is simply too risky not to. Make sure you obtain quotes PRIOR to going into business so you properly avoid the sticker shock when the time for it arises.

In my mind, you tell Dirty Harry, "No, sir, I do not feel lucky," and go get all of the necessary insurances before you open for business.

This post originally appeared on The Whole Magilla and was written by Chris Meyer, co-founder of MagillaLoans.com.

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