As a small business owner, you may wonder if your business is too small for business insurance. However, the answer is probably not. The risks of running a business depend more on what you do and how you operate than on the size of the business.
Why Small Businesses Need Insurance
Many small business owners believe they don’t need business insurance because their business feels too small or too low-risk. But a big misconception among independent workers and solopreneurs is that they focus on the size of the business instead of the risks that come with running one.
Business insurance could help protect your business from the kinds of things you do every day. For example, it could help with the costs of accidents and unexpected events, such as a client misunderstanding or a lawsuit. It could also help you gain more business opportunities, as some clients or partners may require proof of insurance before signing a contract.
Types of Business Insurance
There are various types of business insurance that can help small businesses, including general liability insurance, professional liability insurance, cyber liability insurance, workers’ compensation insurance, and commercial property insurance. Each type of insurance can help protect your business from different types of risks.
For instance, general liability insurance can help cover injuries to others, property damage to other people’s property, and certain legal claims. Professional liability insurance, also known as errors and omissions insurance, can help if a client says your work, advice, or a professional mistake caused them financial harm.
Cyber liability insurance can help with certain costs related to cyberattacks, data breaches, and other covered cyber incidents. Workers’ compensation insurance can help cover work-related employee injuries and illnesses and is required in most states.
Commercial property insurance can help cover business property damaged by some events, such as fire, theft, or vandalism. Commercial auto insurance can help cover some costs around accidents while driving for business purposes.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
