Business Insurance And Your Small Business

One of the biggest hurdles a small business faces are operating costs. Beyond utilities, other costs may include accidents, damages, or lawsuits. A killer for a lot of small businesses is insurance or lack thereof. Although it may seem costly, your small business could benefit from business insurance.     

No matter how careful you are, or how flawless your work may seem, mistakes happen. Business insurance provides many options for protection. Options for policies include customized or standard. Customized policies tend to be more costly but offer more coverage as well. Putting price aside, how can a small business owner tell if business insurance is right for them?   

Check State Laws    

Business insurance requirements vary state by state, but most businesses will need to carry insurance. For example, if your small business has employees other than yourself, then worker’s compensation is likely required. The cost of worker’s compensation can save your small business from a fatal lawsuit that would put you out of business.   

The Basics    

Similar to auto insurance, liability coverage is generally cheaper and provides small businesses cost-effective protection. General liability coverage means not paying out of pocket if something happens to a customer or their property.

If you are a trades-person, professional liability coverage can protect you from errors in the services you provide. Both policies provide an adequate amount of coverage for those just in case situations.       


If your business produces something, then product liability coverage is a good idea. If a product is defective, a customer could file a lawsuit, but with product liability coverage you are protected.

More Advanced options    

Let’s say that business is booming, which means the customer base is getting larger. Higher revenues may lead businesses owners to expand. A small business owner in this situation may want to think about a better insurance policy as well. Again, lawsuits and insurance claims can kill small businesses. Getting more advanced coverage can help protect your growing company and the products or services it provides.   

For a growing small business, the best policy may be a BOP. A BOP is a business owner’s policy, which combines different coverages into a custom policy. Not every small business share the same coverage needs. The BOP allows business owners to bundle the right protections so they are secure moving forward.

More Information

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