How do I know if I need small business insurance?

Contents

1 Introduction
2 You should always get insurance when you’re starting a business.
3 If you own property and operate an office, you should get property insurance.
4 If your business generates a lot of revenue and has more than one employee, you should get commercial insurance.
5 If your business generates a lot of revenue, has more than one employee and also does other things to generate profit (like take in customers for your retail store), then you may need both liability and commercial insurance.
6 Insurance does not replace everything in business. It’s meant to protect you from things that might go wrong.
7 Conclusion

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Introduction

Here is some free legal advice for you:

[It is important to note]…that, “in the United States, a corporate entity’s liability insurance protects only the corporation from liability. Under no circumstances is it liable for individual negligence or recklessness on the part of employees or officers.” [My emphasis] And what are we saying? That if you have a company and don’t have proper insurance, then you run the risk that someone will sue your company and collect damages. This can happen whether or not your own negligence was at issue. If a judgment is entered against your company, that makes it difficult to get credit, borrow money and even pay taxes.

You should also be aware that having liability coverage may make you subject to lawsuits. You should check with your attorney before purchasing any type of corporate liability coverage (also called Directors & Officers). Additionally, because directors are legally required to “act in good faith with a view toward the best interest of the corporation”, it may be necessary for them to obtain an attorney’s opinion about whether they would be protected by D&O coverage. Once again – advice from an attorney….

So you want to start a business?

Section: What do I need when I start my own business?***

Section: What kind of things should I think about before starting my own business?***

Section: How do decisions get made in my business?***

Takeaway: A lot goes into thinking about what types of businesses are popular; businesses like restaurants and small retailers. If that’s all you consider, then there’s good reason why those kinds of businesses often fail because they don’t offer any unique value proposition that people can’t get elsewhere…If you’re thinking long term, there’s no reason why other types of businesses shouldn’t succeed as well. The most important thing is being prepared so when opportunity presents itself (

You should always get insurance when you’re starting a business.

It’s important to get insurance when you’re starting a business. Small businesses need to protect themselves from the potential risks of their operations, and they also need to be able to monitor and react to injuries or damages caused by other people or events.

When you’re considering getting small business insurance, there are four main things that should come into play:

Whether or not there is anything out of your control (like natural disasters) that could cause financial loss for your company
What types of risks might affect your business and what steps can be taken before something happens (like hiring an accountant)
How much coverage would be needed if something did happen; for example, if someone breaks into the office then steals money from the cash register before leaving with it all gone…

If you own property and operate an office, you should get property insurance.

Property insurance covers the cost of repairs to your property. It also covers replacement costs if something happens to your building or other assets, such as cars and computers. The most common forms of property insurance include:

Contents – This covers loss by theft or damage caused by breakage during normal use; for example, if someone steals a laptop from your office.
Physical Damage – This covers damage caused by fire or weather conditions (like natural disasters). It can be combined with contents coverage so that if both are damaged simultaneously then neither will need repairing first before being covered by physical damage coverage instead since they are both covered by one policy rather than two separate ones (contents + physical).

If your business generates a lot of revenue and has more than one employee, you should get commercial insurance.

If your business generates a lot of revenue, has more than one employee and does other things to generate profit (like selling goods), then you should get commercial insurance.

If your business generates a lot of revenue, has more than one employee and also does other things to generate profit (like take in customers for your retail store), then you may need both liability and commercial insurance.

If your business generates a lot of revenue, has more than one employee and also does other things to generate profit (like take in customers for your retail store), then you may need both liability and commercial insurance. The main difference between these two types of policies is that liability coverage pays for injuries or damages caused by someone else’s actions. Commercial insurance on the other hand covers injury or damage to property due to something like fire, theft or vandalism.

This can be important because if someone sues your company for reasons related to its operations or management practices even if there weren’t any personal involvement on their part then this would be covered under commercial policy

Insurance does not replace everything in business. It’s meant to protect you from things that might go wrong.

You may not need business insurance if your business is small and you have excellent record keeping. But if your company has any of the following problems, it’s worth considering purchasing a policy:

High turnover of employees. If the people who work for you change frequently, it could be difficult to keep track of their hours worked and pay them in accordance with the law. This can lead to disputes and potentially costly litigation down the road if there was an error on either side of an employment contract.
Poor customer service ratings from previous customers or clients (or even just Google). If people are unhappy with their interactions with your company, then they’ll likely tell others about their experiences too—and this will make it harder for new customers to find out about what makes yours different from all those other companies out there offering similar services at similar prices (and maybe even charging less).

Conclusion

In my opinion the first time she had her response to the question to be ‘We are not opening a business now, but we will be in future’. This is really common among people who plan on starting their own company. It’s understandable that they don’t value business insurance as much when they are still trying to decide if they want to do it or not.

Her answer also shows why small business insurance is something every new entrepreneur should consider. No matter how sure you may be that your business can be profitable, no one knows for sure what kind of risks will come up once you start working with clients and customers. You might need large amounts of liability coverage and commercial policy, or you might need only basic property insurance.

Her next answer confused me even more though: “No; our main income comes from my friend.” If a company has only one employee then it doesn’t make sense to have commercial liability and commercial property coverages right?

She went on by saying “but we do have enough money for some things.” As she didn’t classify herself as an entrepreneur this was quite weird. I would expect an entrepreneur to say that “yes we are going to start working for ourselves soon” or something like that! She also went on by saying “so we may need some other things too.. so maybe small business insurance” which leads us back to the same point.

All in all I think her comment needs some further explanation…