Starting a small business? How to decide what insurance coverage you’ll need

By Emma Sturgis

An overlooked part of owning a small business is insurance. However, it’s mandatory if you want to make sure that your small business can weather a financial storm. Problems happen, injuries occur, and products arrive broken. Insurance can help keep your business from going bankrupt. Knowing which insurance to choose isn’t as easy. Here are some tips to help.

Storefronts and products

If you have a physical store where customers enter, then you should consider general liability insurance. This insurance covers injuries and property damage. It’s essential for those with buildings because it helps protect them in the event that a customer slips and injures themself. It can also help employees. Many business owners also consider using product liability insurance. This helps them if a product ends up causing harm to the customer that bought it. Because lawsuits can run a business into the ground, this type of insurance is essential for those who sell physical goods.

Accounting services

If you’re worried about your accounting department making a mistake on a customer’s bill, then you may want to consider acquiring professional liability insurance. This type of insurance covers you in the event of a clerical or accounting mistake. The insurance helps cover some of the legal costs that you may acquire when settling in court.

Fire or damage threats

If your business ever has to temporarily close, then you may want to have business income coverage. This type of insurance will pay you and your employees a certain income during the time in which the business is closed. This is used mostly when the business is closed due to some sort of damage. The most common reason is fire or storm damage. This is a great policy to have to ensure everyone gets paid, including yourself.

Lots of employees with hard machinery

A lot of dangerous machinery usually means that at some point someone is going to become hurt. Can your business pay for their medical costs out of pocket? If not, then you may want to consider workers’ compensation insurance. This type of insurance helps pay for the medical costs of the worker that was injured. It’s standard practice to have this type of insurance. It’s only inevitable that one of your employees is going to become injured while on the job.

With so many policies available, it isn’t always easy to know which ones are the most important for your needs. An insurance broker can help. We can help you choose the policies that will best protect your business.


Emma Sturgis is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. Say hi on Twitter @EmmaSturgis2.

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