You’ve begun to turn your dreams of owning and operating a small business into reality. You’ve filed the paperwork, got the requisite financial backing in place, maybe even found a location and hired a few employees. You’re ready to get started on the next phase of your life. But something may still be missing.
Considering all the work you’ve put into your business, even before the doors open to the public that first day, you really need to consider whether all your small business insurance needs are being taken care of in an appropriate manner.
Your business, after all, represents a sizeable investment both on your part and the parts of any investors who may have come on board with you. Protecting that investment with small business insurance is critical to the long term success of your operation. Minimizing financial risk linked to such unforeseen contingencies as lawsuits, theft, injury and natural disaster simply makes good sense.
Unless you are an employer with people working under you, the law probably—depending on state—does not require you to carry small business insurance. But considering the possibility that all your business assets, and depending on the way your business is set up, your personal assets, could be lost, it’s just a good idea to protect yourself.
Any requirements your business may have with regard to insurance are dictated by the state in which you do business. Most require that businesses with employees have at the very least worker’s compensation insurance, which covers your assets in the event that an employee is injured while at work or while performing a work-related task. State disability insurance and unemployment insurance also are both frequently mandated by the state for businesses with employees.
More over, your business may also be required to maintain specialized insurance depending upon the type of activity that takes place there. By way of example, a car or truck used for work purposes may require a special commercial auto insurance policy.
Also, if you do have investors or lenders involved with your business, they may require you to maintain business interruption, fire and life insurance, as well as insurance covering other natural or man-made contingencies that could interrupt cash flow for your business.Small business insurance, however, should not be viewed as something you must have, but something you should have. With all the work you’ve put into your business, isn’t it prudent to have a policy in place that protects your assets and assures the continued operation of your company even during difficult times?
Disclaimer: The information provided in this article is for informational purposes only and may include generalizations or information subject to change. While every effort is made to ensure accuracy, errors or omissions may occur. This content does not constitute professional insurance advice, insurance coverage advice or an offer of insurance. For specific questions or personalized assistance, please contact one of our licensed agents by calling 888-506-2835.
