All businesses, even small ones, need some type of insurance. Typically, general liability insurance is a good starting point. If you are involved in a business that requires you to talk to customers face to face, whether they visit you, you visit them, or you have access to someone else’s equipment, then you probably need insurance. Even if you are simply representing a client’s business and not meeting with them in person, there is always the possibility of a lawsuit of some kind. Insurance is available for small businesses and professionals.
How much will it cost you? The cost depends on factors such as where you are located, where you do business, the type of industry you are in, the size of the company, the limits/deductibles you select, etc. As a responsible individual for a company, you must ensure that it is adequately protected against potential risks and unexpected legal problems.
Some small business general liability insurance includes advertising protection. This is something you might need if you are concerned about copyright laws and potential defamation charges.
What about theft? General liability insurance generally covers only third-party losses for which your organization may be partially responsible due to negligence. If you’re worried about having your property stolen, look for a policy that includes that type of protection.
Insurance required for small businesses
You will likely need some type of insurance to operate legally. Depending on your state, there are some types of insurance that even small businesses should have. If your business operates vehicles, for example, you will need auto insurance. In some states, workers’ compensation is also required (if you have employees).
Even if your business is going to be primarily online, you may need some cybersecurity insurance. Small businesses fall victim to data breaches all the time. A single security issue can cost you a lot of money. Imagine what would happen if all your customers’ personal data were stolen.
Make sure you understand the true ramifications of all the terms and limits of a policy before deciding whether it is right for you or not. Insurance policies can be a bit complicated, especially if there are industry-specific terms that need to be understood. Read each policy recommendation and exclusion and make sure you understand every detail.
Find affordable small business insurance at Hiscox Business Insurance. It is very affordable, but complete. No matter what type of industry you are involved in, Hiscox will likely have an insurance plan customized for that industry.
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