Why You Need Business Insurance

Two cheerful small business owners smiling and looking at camera while standing at entrance door.

Insurance is there for you if something goes wrong at home and at your business. The right insurance can save you from financial catastrophe no matter the circumstances. Here are some reasons to make sure you have the RIGHT business coverage:

  1. Leasing a commercial space. Landlords typically want tenants to carry General Liability and Property Insurance. Actually, most landlords require proof of insurance before they’ll rent you a commercial space.
  2. Winning new clients. The bigger a client, the more complete the deal the more likely you are to have you sign a contract. That contract will often require you to carry Errors & Omissions Insurance. This business insurance is critical. If something goes wrong, you can pay for it (so your clients don’t have to).
  3. Complying with state laws. Businesses that have employees are required to carry Workers’ Compensation Insurance in 49 states (Texas is the exception). Regardless of the laws where you live, it’s smart to invest in coverage that can pay the bills if your employees are injured on the job.
  4. Paying costly legal bills. If a visitor or an employee falls on your property or you sell a product that hurts someone, you could get sued. General Liability Insurance with Product Liability coverage, offers lawsuit protection so legal bills don’t drain your bank account or force you out of business.
  5. Securing your income. If a fire or other event forces your business to close, Business Interruption Insurance can replace your lost income. This little-known gem is usually part of a Business Owner’s Policy and can be the difference between saving or losing a business
  6. Covering your business driving. Whether you carry materials and tools between worksites or rent cars when you’re traveling to meet clients, Commercial Auto Insurance can cover damage and liability just as your personal auto insurance does. If you have a vehicle titled to your business, then Commercial Auto is the policy you should consider
  7. Saving at tax time. Like most business operating expenses, business insurance is tax-deductible.