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Business Insurance Owners Should Consider

There are many things to consider when launching a new business, such as business insurance. Like all other insurance, the value of the investment is not recognized until it’s too late. You don’t know the value of your automobile insurance until you have an accident, or how important your health insurance is, until you’re sick or need surgery. The same is true for business insurance. Until you’re in a situation where you need protection, you don’t realize its importance.

Legal Obligation

It’s first important to understand that most states require you to carry business insurance as a small business owner. Check with your local government to ensure you are up to date on the laws on business insurance and what you are required to carry.

Types of Business Insurance

There are many different types of business insurance and the amount of insurance you need to carry will vary depending upon the structure of your business and the industry you’re in, but’s let’s take some time to discuss the basics.

  • Limited Liability: This type of insurance covers most of your financial liabilities like debts or legal obligations your business may have.

  • General Liability: This will protect you from accident and injuries, even if you have a home-based business. There are also other liability insurance options to consider that fall under the categories of professional, product and employment practices based on your business.

  • Commercial Property Insurance: If you operate your business from a physical office, you will likely need property insurance, and if you use a vehicle to operate your business, you will need vehicle insurance.

  • Income Insurance: There are various options for insurance to protect your business income should you expect any extreme circumstances that would affect your revenue, such as relocation or expenses incurred after a ‘disruptive event’ to your business.

  • Worker’s Compensation Insurance: If you have employees in your business, this will cover any lost wages for employees based on injury.

  • Home-based Business Insurance: Given the growing home-based businesses in American, this insurance will come in handy for many small businesses. It covers the liability for a home-based business, outside of your homeowner’s insurance.

  • Error and Omission Insurance: This type of liability insurance protects your company, staff, and other affiliated professionals from claims against negligence and inadequate performance.

  • Disability Insurance: In the event of an injury occurring while on the job, disability insurance protects the injured against income loss, and provides partial compensation to the injured parties to assist with living expenses.

These are just a few options of the types of insurance available for your business, but it is best to consult with a business professional to identify what options make the most sense for your business.


Here are some other factors to consider:

  • It boosts your business credibility. When your customers see that you have invested in business insurance for your business, it shows that you are serious about what you have to offer, and you care about protecting your investment. This boosts their confidence in doing business with you.

  • Some contracts require insurance. Depending on the type of business you’re going after, some of your contracts may require you to carry business insurance. This is especially common when delivering contractual services to the government.

  • Helps with recruitment and retention. When you are ready to grow your business team and add employees, insurance is an attractive offering. From health insurance to other benefits, employees want to know that they are protected and taken care of.

  • General protection. From natural disasters to lawsuits, insurance is a good rule of thumb to protect an asset that you have invested time, money, and energy in building. While you may never need to use it, you never want to be without it.

So, the question remains, do you need business insurance? The short answer to this question is yes. As you build your legacy, it is vital that you minimize your risk. One way to do that is by investing in business insurance. It is not necessary that you invest all at once. Start only with what you need and build your coverage as your business grows. The best way to determine what your business needs at its current stage is to sit down with an insurance professional to determine what best fits your current set up. Business insurance can be very affordable, as low as $500 - $1,000 per year, but is best to evaluate your options with a professional to determine what is the best fit.

VAAS Professionals has over 20 years of experience working with small business and may be able to make recommendations for a great insurance partner to work with you.


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