The main trouble with insurance, and it does cause business people quite a lot of trouble, is that people think about it in a variety of wrong ways.

A wrong way is to pay as little as possible in insurance premium, without thinking about the security of the business.

Well, you may have a crystal ball which tells you that you are never going to have a loss. If so, it is logical to buy insurance only when you have to. You will find that those with a monetary interest in your property, for example, mortgagees, will insist on your having certain policies, and some insurance such as automobile insurance may be compulsory in many provinces. But apart from those situations, you should buy no insurance - if you are not going to have any losses.

However, most people face the fact that they may have a loss some day, and perhaps a serious one they can not afford it by themselves. Having reached this conclusion, the next step must surely be to see that you have adequate coverage - that is, insurance that leaves no important gaps, but does not waste money on insuring trivial items that you can better pay for yourself.