What Is Small Business Insurance?

Insurance helps reduce the financial risks of running a business. 

Small business insurance specifically covers the risks a small business faces in it's day to day operations. Many lenders or businesses you may work with also may require you to hold specific insurance policies too.

In this article, we look into the types of small business insurance, plus some of the ways to identify if it is necessary to hold for your business.

Do You Need Small Business Insurance?

The decision as to whether or not you need to take out business insurance policies is completely yours. We're not going to say yes or not, but once again, recommend you chat with an insurance professional.

In your decision making process though, it could be handy to ask yourself the following questions, as your answers will most likely help you decide:

• do you have the cash to replace damaged or lost stock?
• how would you cope financially if your business was suddenly unable to be operated?
• do you have the funds to pay for a lawsuit should you, your business, your product cause harm?
• do you want to participate in trade shows or markets, where having insurance may be compulsory?

As a small business owner, you are particularly financially vulnerable. Consider your need to have insurance carefully and thoughtfully. For further advice, please contact an insurance professional.