<h3>Hello there!</h3>
Your question asks what is the common business mistake that can cost you everything.
<h3>Answer: Failure to buy adequate business insurance</h3>
The reason why "Failure to buy adequate business insurance" is the correct answer because anything can happen in a business, and if you don't have coverage for it, then you could lose the business and everything with it.
Owning and/or running a business is very time consuming and rough, and if you don't have the right coverage for the business, everything can go down the wrong path. From losing the building, to getting sued, a business could get shut down easily without insurance.
There are many different types of coverages/premiums that business owners could get for there business.
Coverages/Premiums:
- Liability
- Property Insurance
- Compensation for workers
- Etc.
Liability is a very important premium for a business, due to the fact that anyone in the business could cause some sort of damage to their or other's property. Therefore, they need coverage in order to be able to pay for those damages. If a business doesn't have this insurance, and someone damages something from someone else or their own, then that will be a huge financial cost for the business, and could possibly shut them down.
Property insurance is also another important thing for a business to have. This is important because you don't know if the property could one day burn down to the ground, and you would need insurance to cover those expenses. If you don't have this insurance, and something happens to the property, you could lose part of or the whole property, and that will cause a fortune for the business, maybe causing the business to shut down.
Compensation for workers is especially a very important premium for a business, since there might be a chance someone could get hurt while at work. If someone gets hurt at work, and you don't have insurance to cover their injuries, then they could sue the business for a lot of money due to the fact that they got hurt on the job, and it would be hard for the business to use their well-owned money to pay someone's hospital bill, and hospital bills are expensive, therefore it could lead the business to shutting down.
<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
