No matter how successful your business is disaster could strike at any minute and in minutes ruin everything it has taken you years to create.  This is why business insurance, no matter how big or small the company, is so important. Businesses must carry insurance to alleviate the risk involved in unforeseen events.   When cutting costs and shrinking corners in your business expenses make sure you don’t lessen or stop your business insurance.  Sometimes it only takes one event, no matter the size, to completely disable everything you have worked for within your business. Below you will find things to consider when looking into insurance coverage for your small business.

The first thing to consider is insurance that covers acts of God and general business liability.  Acts of God are events that is out of human control such as floods, tornados, hurricanes and storms.  No one can control the outcome of a natural disaster thus why it is so important to have insurance to protect your business from one.  It is incredibly hard to predict a natural disaster in enough time to protect what you have built up from what is about to happen.  Insurance makes it so that you can rebuild and continue running your business once the dust settles.  General liability insurance covers a business owner for accidents.  For instance, if you own a computer repair company and while a client’s computer is in your shop a theft occurs.  Insurance protects you from liability to the client for the missing computer.

Another consideration is the laws regarding business in your state.  Legal requirements for businesses are done at the state level and often have strict rules out the type of insurance that needs to be purchased and how much coverage needs to be obtained.  Check to see about workers compensation, disability insurance and other state requirements.  Using a local in-state insurance agent for your business insurance needs will help to ensure that you are receiving knowledgeable information regarding your states business requirements.

Workers Compensation, property insurance and general liability are all incredibly beneficial types of business insurance coverage however do not help fill in the gap for reimburse lost profits.  The only type of insurance that covers you for reimbursement of lost profits is business interruption insurance.  This insurance keeps you up and running even after a disaster.  Disability insurance can be purchased to keep a steady income coming in shall you be disabled or too ill to run your company.  Likewise, insurance can be purchased for overhead expenses such as supplies and inventory as well if you should become disabled and cannot continue running your business.

Business insurance is purchased to protect your hard work.  When seeking out business insurance it is best to find one agent to purchase insurance from.  This ensures that they have a record of what you have at all times and can evaluate any missing pieces as your business grows and your insurance needs change. Business insurance agents will regularly assess your businesses risks by doing a risk assessment which helps to ensure that as your needs change so does your insurance.