For many small business owners the cost of business insurance is a major expense that they wish they could do without. Many small businesses decide to self-insure; that is, they deal with sudden and unexpected costs from insurable accidents out of their own pockets. They dont buy a commercial insurance policy to cover such risks.

This is quite understandable given that insurance premiums have risen considerably in recent years. But, Business owners that don't cover themselves with a commercial insurance policy are taking a bigger risk then they can imagine.

Sure, most business owners can cover small and common risks out of their own pockets. A broken window. A small robbery. Stolen merchandise. They don't realize that claims can be much much bigger than this and are not prepared for them if they self-insure.

Here are just a few short examples of risks that businesses face that could be devastating:

• Liability: Do you think that nobody will ever sue you just because you are a "nice guy?" Think again. The U.S. population has become increasingly litigious, even with frivolous claims. A lot of people won't think twice about sueing you if the opportunity arises. Claims can result in millions of dollars in damages being awarded. A claim could result from someone simply slipping on a wet floor in your shop. Commercial insurance policies have liability coverage.

• Business Continuity: Would you be able to survive if your business had to shut down due to an accident? Perhaps a few days would not be a problem. But what about weeks or months? Probably not. Lets say, for example, a fire ravages your business and it needs to be rebuilt. An insurance policy would cover the rebuild. But did you know that if your policy includes business continuity coverage, it would also pay you for loss of revenue or income during that time? This is invaluable coverage. A loss that would otherwise cripple you would now be bearable.

• Catastrophic Losses: As a business owner, you probably pride yourself in keeping things under control. But you cannot control everything. Do you think that you have any control over acts of God floods, tornados, hurricanes, etc. Of course not. Would you be able to survive if one of these wiped out your business? A commercial insurance policy could cover you for catastrophic losses.

Although, self-insurance may look like the best option for your business it really isn't. Talk to an insurance broker, get a quote, and buy an insurance policy for your business. Its too risky not to.