Do You Have Business Insurance to Protect Your Small Business?


Do You Have Business Insurance to Protect Your Small Business?

When you’re starting up your small business, it probably seems like business insurance is the last thing you want to spend money on, given the fact that there are so many other costs associated with establishing your business. However, there are some very real threats which could derail your fledgling business if you don’t have some kind of insurance coverage. For instance, you could fall victim to a natural disaster, your business could be burglarized, or you could be named in a lawsuit that devastates your finances. To protect yourself against any of these eventualities and others, here are some of the types of business insurance coverage you should be aware of.


Business interruption insurance

This kind of insurance can be a lifesaver when there are unforeseeable events which cause your business to shut down – such as floods, hurricanes, or some other kind of natural disaster. Since your business has been shut down, you will undoubtedly experience a loss of income, and you may even have to repair or rebuild your place of business. Business interruption insurance covers these situations, so that you can literally ride out the storm, and get back on your feet again afterward.


Business owners’ policy

Two of the biggest risks assumed by business owners are damage to commercial property and general liability. When you have general liability protection, you’re covered in lawsuits such as those when customers fall in your store, or similar events. Commercial property damage might occur as a result of a localized fire that breaks out in your store, or water damage you suffer when a roof section collapses. Having protection in these two broad areas should be considered your base insurance, and the minimum protection you should have as a business owner.


Professional liability insurance

This is sometimes also referred to as errors and omissions insurance, and it’s generally needed by service businesses. It protects you against any kind of court action brought against you by clients alleging some kind of negligence or omission on your part. As an example, if you’re a construction contractor, you may be sued for some kind of faulty service provided in the building of a structure you worked on. Professional liability insurance would protect you in cases like this.


Cyber insurance

Cyber criminals don’t only go after the big corporations despite they’re being the most lucrative opportunities. In fact, they have realized that attacks against a number of small businesses collectively provide a very satisfying return as well. That being the case, you need to have protection against breaches of your computer system which may result in customer data being compromised.

One of the favored types of attacks by cyber criminals is using ransomware against a small business. This kind of attack penetrates your computer system and encrypts all your business data, making it unusable. The attacker will then ransom that data back to you for a tidy sum, and you have very few options other than to pay the ransom, or go out of business. This is only one cyber security scenario among many, but the point is that you need to be protected against attacks which could potentially put you out of business.


If you would like help creating a plan for what types of business insurance make the most sense for your company, we can help with that. is about execution, getting things done, moving the needle, helping the business owner succeed.  It’s always exciting to learn about the solutions and challenges business owners are facing daily, and to see how we can work together.  We’d love to meet with you and hear your story.

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