Managing Your Business


08 29 2017

Business insurance for small businesses

08 29 2017

Do You Need Business Insurance When Starting Or Growing A Company?

Starting a small business always comes with a little bit of risk. Your venture may not pan out as planned, or it may take more time than expected to turn a profit. These risks are unavoidable, and every business owner must contend with them.

Then there are other risks, like an employee who gets injured, a chef’s kitchen that catches fire or a criminal who steals inventory. For these types of risk, business owners can prepare themselves with various types of insurance.

How to get business insurance

According to the Insurance Information Institute, there are four types of insurance that nearly every business owner should have:

  • Property insurance.
  • Liability insurance.
  • Business vehicle insurance.
  • Workers compensation insurance.

Here’s what you need to know about these types of insurance and more:

Property insurance

Property insurance will help out if your brick-and-mortar location is damaged by fire or vandalism. It’ll also come into play if your inventory is lost or stolen. Additionally, property insurance can help out if your personal property, like computers, machinery or other items necessary for your business become damaged.

Liability insurance

Every business is at risk of a lawsuit. A customer can claim that your product caused them harm or that you provided an unsafe environment that caused injury. There are countless scenarios that can result in a person suing an enterprise. Liability insurance helps pay for legal fees, medical bills and other fees related to claims against a business.

Business vehicle insurance

If you use a vehicle for your business – even if it’s your personal car – you should at least consider business vehicle insurance. If your car is mostly driven for business purposes and you get into an accident, there’s a good chance your personal auto insurance policy won’t cover it.

Workers compensation insurance

Almost every state requires workers compensation insurance once your business employs a certain number of people. This number varies from state to state, but it’s usually between three and five employees – yourself included. The only exception is Texas.

Umbrella insurance

If you have a small home-based business, full property or liability insurance policies may not be necessary, but you might still need a little more coverage than your homeowners insurance policy provides. An umbrella insurance policy can give you the coverage you need but isn’t as costly as a typical property insurance policy.

Business interruption insurance

Destruction due to natural disasters can close a business down suddenly and unpredictably, costing the business owner lost revenue and potentially inventory and property. Business interruption insurance can cover losses in these circumstances, Small Business Trends pointed out.

Certain companies might determine that a specific insurance product suits their needs while another type of business finds it irrelevant. For example, a person with a robust property insurance package might find that business interruption insurance is redundant. It’s important that business owners thoroughly review their options with an agent before making any decisions.

National Funding financing for small businesses


  • How to get a restaurant business loan

    3 Goals to Accomplish Before Getting a Restaurant Loan

    Many would-be restaurateurs today find that getting a business loan isn't as easy as it used to be. After the recession, many banks and other traditional financiers cut down on lending to budding entrepreneurs, NerdWallet reported. To obtain the necessary funds, prospective restaurant owners turned to alternate strategies. Asking friends and family for the cash… […]

  • How small businesses can retain customers

    Customer Retention Strategies for Small Businesses Success

    As a small business owner, you know it's much easier to work with existing customers than to bring in new ones. While a flow of fresh shoppers is always a good thing, the customers who learn about you and your store while returning time and time again are a very solid and useful base. Of… […]

  • working capital small business loan

    What Is Working Capital: A Guide to Small Business Funding

    As the saying goes, you have to spend money to make money. When starting or scaling a business, you'll need to invest in certain assets, like inventory, space or employees, before you start making a profit. But, before you begin putting money toward equipment, supplies or other needed purchases, it's critical to understand your current financial… […]

  • Business feel stagnant?

    Does your small business feel stagnant? Advice for jump-starting success in 2018

    Once you've successfully established your small business, you've reached a major milestone in your professional life. You've successfully met a variety of crucial needs, like creating cost-effective workflows, building relationships with clients, managing workloads and many others. However, you may also feel like your company isn't growing as quickly or as strongly as you'd like… […]