Alright, so you've got a small business and you're thinking, "Do I need insurance, and if so, what kind?"
First off, congrats on being a business owner! Now, insurance-wise, it really depends on what you do and what kind of risks you might face.
Let's start with the most vital of insurance coverages....liability insurance. Liability insurance covers you in the event your actions create a loss for someone else. The reality is that no one can stop a lawsuit, but you can defend yourself against one by having a comprehensive liability policy in place BEFORE you start operating your business. We are not lawyers, but it may be a good idea to establish an LLC or corporation to provide another layer of protection in the event of a lawsuit. Consult legal counsel for more information on setting up an LLC or corporation.
If you've got a physical location with stuff in it (like computers, furniture, tool, etc.), property insurance would also be necessary. Unless you can afford to replace those items out-of-pocket in the event of a loss, property coverage is a must.
If you have employees, Workers Comp is also a must. Laws vary by state with regard to being mandated to carry Workers Comp coverage, so speaking with a knowledgeable business insurance professional would be recommended helping to understand the laws in your state.
Lastly, if your business involves automobiles (delivery vans, food trucks, dump truck, etc.), commercial auto insurance will be required by law. Most commercial auto insurance policies offer a $1 million liability limit to protect your business in the event of an at-fault accident.
In the end, the best insurance is the one that fits your business like a glove—not too tight, not too loose, just right.
If you need help in determining the right coverage for your business, give us a call at 703-674-0299. We would be happy to assist!