Many business owners don't know how to weigh the cost of insurance versus a loss to their company. They can't imagine having a catastrophic loss that could put them out of business.
Typically, a mistake made by many business owners is they confuse the opportunity for loss with the cost of insurance. They can’t imagine having a catastrophic loss that would them put them out of business, where that happens every day. Businesses don’t anticipate large losses and haven’t adequately protected for it don’t have the resources to recover at the time of loss, where this could have been handled had they purchased an insurance policy as a backup.