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Completely false. There is a huge difference in what an insurance company will insure your business for if you regularly hold $500 vs. $5,000. Cash is a huge li
by jbob2000 8y ago
Completely false. There is a huge difference in what an insurance company will insure your business for if you regularly hold $500 vs. $5,000. Cash is a huge liability.
Also, I can store $500 in a locked drawer or I can comfortably bring it home with me. $5,000 would need a safe bolted to the floor. And if you have a safe, now you need a camera to watch the safe. Say you now want to hold $50,000. Now you need a bigger safe and more cameras.
Cash does not scale at all.
- dredmorbius 8y agoAny references on the insurance risk?
- jbob2000 8y agoUh, literally any commercial insurance? You get categorized into a risk pool depending on whether you handle cash or not, and how much cash you store overnight. Google “commercial insurance”, there’s usually a section for Theft and Counterfiet of cash risk.
- dredmorbius 8y agoIf the references are so trivial to find, perhaps you might present one? I find numerous results on procedures. None obviously addressing premiums. Though the notion does seem likely. https://duckduckgo.com/?q=cash+handling+business+insurance+risk+premium https://duckduckgo.com/?q=cash+handling+business+insurance+r...
- jbob2000 8y agoI mean, it's just a basic tenant of commercial insurance. If you hold lots of cash, you are at a higher risk for theft. This is evaluated when you are in the process of acquiring commercial insurance. You basically just asked me for a reference for whether or not you get wheels when you buy a car. Of course you get wheels, you just need to work with the dealership to determine what they look like! Just to give you a reference, here's a special package Nationwide offers: https://www.nationwide.com/crime-insurance.jsp https://www.nationwide.com/crime-insurance.jsp
- dredmorbius 8y agoThanks, and to be clear, again, I'm not doubting you. I'm looking for a referenceable source. A peculiarity of mine. Taking another angle: what's your familiarity with this? Operating a small business or insurance firm yourself? Conversations?
- dredmorbius 8y agoInvestopedia's list of business mentions numerous concers. Cash handling isn't among them, though embezzlement controls are. https://www.investopedia.com/articles/financial-theory/09/risk-management-business.asp https://www.investopedia.com/articles/financial-theory/09/ri...