Preparation vs. Insurance

Over the weekend I was struck by the increasing societal need to either blame others or more to the point to have someone else to blame. Not only does this make us feel better, but it relieves us the responsibility and accountability for and of our actions. Just one time I’d love for someone to hold up there hand, calmly and assertively, in either a good or a bad situation, and say “My fault”. Usually when I’m out talking to Chambers of Commerce, Small Businesses or town leaders about business continuity we inevitably get to the question about preparedness and the all-to-often answer sounds particularly similar to “Why would I need to prepare, that’s why I buy insurance”

This concerns me for a variety of reasons. First and foremost, I’m an insurance geek, and while the purchase of a Small Business Insurance package policy that meets the needs of a particular Business in a critical component of any Business Preparedness strategy for any business. One thing is not a substitute for the other. According to the SBA anywhere from 15-40% of Small Business fail after a major event, and iii estimates that 40% of all Small Businesses are completely uninsured. So obviously having the proper insurance coverages is a critical piece of the recovery, but ceding the responsibility for being accountable for the management of your business is not the intention. We’ll look into this aspect of Small Business Planning in future entries, but I wanted to make sure that our first statement around Small Business Continuity Planning revolves are our personal accountability to own this process.

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