Long before the big box store, mom and pop represented the entrepreneurial scene. These corner stores – typically family-owned – provided locals with a wide variety of products and services that enabled consumers to get what they needed for their daily dealings.
Though mom and pop companies aren’t quite as common as the used to be, small businesses have grown in number. In fact, there are currently more than 28 million small businesses throughout the country, accounting for over 99% of employer firms and 63% of new private-sector jobs each year, according to the Small Business Administration.
Given their vast representation of the U.S. economy, it’s only fitting that there be a day that pays tribute to the small business owner.
Sunday is just such a day. March 29 is National Mom and Pop Business Owners Day. For the past 76 years, the annual event honors the small business owner, whose services and goods are largely responsible for why the consumer’s hard-working dollar represents approximately 70% of the country’s economy.
Vast in number though they may be, small business ownership doesn’t come without its difficulties, given today’s highly competitive marketplace. In fact, according to government data, approximately half of new establishments have a survival rate of five years or more and one-third last about decade or longer.
1 in 4 businesses don’t survive a loss
Small businesses’ ability to thrive largely depends on the consumer, but it also has a lot to do with the hand that owners are dealt. For example, after experiencing a loss that forces companies to close their doors – such as a major storm or fire – 25% don’t ever re-open them again, according to survey data from the Insurance Information Institute.
Those chances, however, increase dramatically with the proper business owners insurance policy.
“Too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable,” said Loretta Worters, III vice president and consumer spokesperson. “A business that has to close down completely while the premises are being repaired may lose out to competitors.”
There are several different kinds of business owner insurance plans. The most common – typically called a business owners policy or “BOP,” for short – combines property, liability and business interruption coverage so that owners can adequately manage their affairs after experiencing a loss, whether it be a fire, environmental disaster, theft or some other incident that can bring things to a sudden halt.
The III has an informative and fun three-minute web video that discusses the various aspects of coverage and what they provide. Additionally, please contact RC4 Insurance Agency, LLC to discuss an insurance plan that best protects your business.
Article From Selective Insurance Company
