Sep 03, 2013
Arizonan business owners—did you know that you could apply for not only car and life insurance, but also business insurance? Arizona business insurance is perhaps one of the most obscure forms of insurance out there, but the coverage it provides is something incredibly valuable if you are a business owner. An average of 9/10 new businesses fail, with thousands of unprotected businesses falling victim to the times.
Arizona business insurance can provide you with coverage against a variety of these unexpected events including product recalls, unexpected production halts, unexpected losses of revenue, and more. It should be apparent that abrupt changes in a business’ daily routine can cause significant, future-altering obstacles to a business’ success.
Take a product recall: although product recalls most famously affect the automobile and pharmaceutical markets, product recalls can happen for all industries, and can cause considerable drops in both revenue and company reputation. For example, take the infamous peanut butter recall from 4 years ago: in 2009, concerns about improper sanitation and handling in peanut production made known to the public the possibility of salmonella contamination in generic consumer peanut butter.
The recall of a simple, inexpensive household grocery item resulted in a loss of over 1 billion dollars for peanut butter companies who had to both recall thousands of products, and repair their damaged relationship with their customers. This is not unusual—Toyota’s recall in 2010 cost them 3 billion dollars, while Merck’s Vioxx recall in 2004 cost them over 4 billion dollars.
Although a recall won’t causes losses on this scale for the average business, the potential damage made from any interruption to business is made apparent from past events. The damages incurred in the past is what led to the creation of business insurance, and now you can apply for business insurance to protect you and your business.
The peace of mind provided by business insurance allows Arizona business owners to focus on what they do best—providing quality products and services. If you are looking for Arizona business insurance, give Summit Insurance’s service experts a call to get started today.