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Why 40 Percent of Business Owners Are Dead Wrong About Insurance Of all the types of insurance, every entrepreneur should have this one.

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"I don't have time to think about it."

"It's on my to-do list."

"It's too expensive."

Does this sound familiar? If so, you're not alone. As it turns out, around 40 percent of business owners say they have no insurance whatsoever, which is startling. After all, every day in business can be a risk. Without warning, your company could face accidents, storm damage, your own disability, and many other unexpected circumstances. What would happen to your company if your business partner or a key employee died suddenly?

It can be tempting to put off paying monthly premiums but insurance protects you and your family against a devastating financial disaster. If the worst happens, you'll have the peace of mind of knowing that you and your loved ones are protected. Without insurance, your family might be left without a car after an accident or your home may be a complete loss after a tornado, with no way to replace it.

As an entrepreneur, you likely already understand the importance of carrying insurance on your business and its assets. But you may not realize just how valuable life insurance can be on you as a business owner.

Here are a few reasons life insurance is a must-have for every entrepreneur.

It helps you sleep better.

Stress is already a problem for most business owners, especially once demands start to outpace resources. If you're procrastinating setting up life insurance, that fact alone can exacerbate your existing stress, since those unfinished to-do-list items have been linked to stress. By signing up for at least a basic life insurance policy, you'll have one less thing to worry about.

It helps your business partners sleep better, too.

As your business grows, an increasing number of people get involved. This includes investors, clients, business partners, financial institutions and other stakeholders. You may find that when you submit a business proposal for funding or a loan, you're asked how your business will proceed if something happens to you. Having life insurance in place will help you assure everyone invested in your business that its continued success isn't specifically reliant on your good health.

Employees depend on you.

Once you've hired your first employee, you have a responsibility to other people. Salaried employees rely on their paychecks to feed themselves and their families. Freelancers, contractors, and even your vendors rely on the money you bring to them on a regular basis. While each of these people can eventually replace that income with another source, it still presents at least a temporary hardship. Life insurance could provide business continuity while your partner or a key employee takes over day-to-day operations.

Your family won't be financially burdened.

A business owner's death leaves family members with some difficult decisions. Do they take over and run it themselves? Do they try to find someone else to handle operations or close the doors?

They may want to continue the company you've worked hard to build, but without its leader, they may find that employees or clients leave. Life insurance would at least provide your family the financial support they need to set their other work aside and keep your business going until they can figure out the details.

The business may survive.

Something called "key person life insurance" can keep your business going if you or one of your key employees suddenly dies. While it won't replace the person, it could replace the income that is lost when a crucial professional is suddenly gone from a business. It also could help pay the salary of someone with those essential skills to come in and run things.

If you haven't considered life insurance for yourself, it's important to set time aside to research your options. Just a small investment each month could offer you the protection you need to relax and focus on other areas of operating your business.

For more information about life insurance options from Entrepreneur Insurance, visit entrepreneur.com/lifeinsurance.