It is important for small businesses to have insurance so that if there are any issues, they are covered. This article discusses the risks for small businesses without insurance and why it’s highly recommended to have insurance for your business.
Increasing Affordable Care Act Premiums
The Affordable Care Act (ACA) is a federal law that requires all Americans to have health insurance. However, the cost of premiums for ACA-compliant health plans has been increasing at an alarming rate. In some cases, premiums have more than doubled since the ACA was implemented in 2014. This has caused many small businesses to drop their health insurance coverage because they can no longer afford the high premiums.
One way to help offset the rising cost of ACA-compliant health insurance is to enroll in a group health plan. Group health plans are usually less expensive than individual plans because the risk is spread out among a larger pool of people. If you’re self-employed or your small business does not offer health insurance, you may be able to purchase a group health plan through a professional or trade association.
Small Businesses without insurance
As a small business owner, you may feel that you don’t need insurance because your business is too small to be at risk. However, even the smallest businesses can face risks that could lead to serious financial problems if they are not properly insured.
Some of the risks that your business could face include:
- Property damage or theft
- Liability for injuries to employees or customers
- Loss of income if your business is forced to close due to property damage or other unexpected events
Without insurance, you would be responsible for paying for all repairs or replacements, which could quickly bankrupt your business. Even if you are careful and have never had an accident or incident. It only takes one time for something to go wrong and leave you without the resources to recover.
Health Plans for Small Businesses without Insurance
Another option for offsetting the cost of ACA-compliant health insurance is to apply for a subsidy through the federal government’s Health Insurance Marketplace. Subsidies are available for small businesses and individuals who meet certain income requirements. To see if you qualify for a subsidy, go to www.healthcare.gov and enter your information into the “Subsidy Calculator.”
If you don’t qualify for a subsidy and you can’t afford the rising cost of premiums. You may have no choice but to go without health insurance. Insurance may seem like an unnecessary expense, but it is worth the peace of mind. Knowing that your business is protected in the event of an unforeseen disaster.