Small business insurance: read this quick guide before you get started

Every business – even the small ones – needs some kind of insurance. Usually, general liability insurance is a good place to start. If you are involved in a business that requires you to speak face-to-face with customers, whether they visit you or you visit them, or have access to someone else’s equipment, then you probably need insurance. Even if you’re only representing a client’s business and not meeting them in person, there’s always the chance of some kind of lawsuit. Small business and professional insurance is available.

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 involved in, the size of the business, limits/deductibles you select, etc. As the person responsible for a company, you must ensure that it is well protected against potential risks and unexpected legal problems.

Some small business general liability insurance policies include advertising protection. This is something you might need if you’re concerned about copyright laws and potential libel accusations.

What about theft? General liability insurance typically only covers third party losses for which your organization may be partially responsible due to negligence. If you’re concerned about your own property being stolen, look for a policy that includes that kind of protection.

Mandatory insurance for small businesses

You probably need some sort of insurance to operate legally. Depending on your state, there are some types of insurance that even small businesses should have. For example, if your business operates vehicles, you need auto insurance. Some states also require workers compensation (if you have employees).

Even if your business will be primarily online, you may still need cybersecurity insurance. Small businesses are constantly falling victim to data breaches. Just one security flaw can cost you a lot of money. Imagine what would happen if all of your customers’ personal information were stolen.

Make sure you understand the real implications of all the terms and restrictions of a policy before deciding whether or not it is right for you. Insurance policies can be a bit tricky, especially when there are industry-specific terms to understand. Read every endorsement and exclusion in the policy and make sure you absolutely understand all the details.

Find affordable insurance for small businesses with Hiscox Business Insurance. It is very affordable, yet comprehensive. No matter what type of industry you operate in, Hiscox likely has an insurance plan tailored for that industry.