If you insure against everything you will soon find yourself somewhat safe and totally broke. Running a business is risky business; Life is risky business; But the greatest risk is that of the fear of taking a risk at all.
Take steps to insure only when…
- …the insurance costs less than the cost of repairing the damage times the likelihood. This is rarely the case unless you have an exceptional situation for which the insurer did not adequately predict.
- …you cannot recover from the catastrophic event if it were to occur. For instance, most of us do not have the bankroll to pay out of pocket for heart surgery.
It is generally wise then to accept responsibility for everything else.