Brought to you by Selective Insurance:
One question many small business owners have when starting a new company is whether or not they need commercial insurance. In reality, having coverage helps ensure that you’re protected against the unknown, and skipping it can be a costly mistake.
Contrary to popular belief, business insurance isn’t just for large corporations or companies with obvious risks. It’s for businesses of all sizes. As a small business, it’s less likely you’ll have the cash reserves needed to cover a substantial incident without the assistance of insurance. By understanding what small business insurance covers and how to get it, you can be sure your dream is protected.
What is Small Business Insurance?
Small business insurance is designed to meet the unique needs of companies that may be just starting out, have few employees, and have relatively minimal risk. Coverage options include insurance for liability, property damage, commercial auto, worker’s compensation, and more. Professional liability insurance protects against liability from mistakes made in the course of business that could potentially result in a lawsuit.
Similar to the personal auto or home insurance you carry, commercial insurance is designed to protect your company from everyday business operating risks. Personal injury to a visitor on your premises, property damaged through vandalism, fire, theft, or a weather event are all common risks that could be financially devastating to a business without insurance coverage.
How to Purchase Insurance for Small Business
Contacting a local independent agent is the easiest way to get insurance for your small business. Agents will be able to assess your business needs and recommend a package of insurance that provides thorough protection for risk exposures. Be detailed and clear in your description of the business operations so the agent can provide the best options.
In some industries, having liability insurance or professional liability insurance is required by law, so be sure to ask your agent about your legal compliance obligations, too. Some industries might not require coverage legally, but you may encounter clients who will only work with insured companies. In addition, most states require businesses with even as few as five employees to carry worker’s compensation insurance.
So, Can You Run a Small Business Without Insurance?
Sure, a business can certainly be run without insurance – but that doesn’t mean it should. Small business insurance is designed to protect all the hard work you’ve put into your company and help you keep it up and running, even after a loss. Accidents, mistakes, and natural disasters can happen, and the peace of mind in knowing you’re covered is well worth the annual premium cost.