According to the Insurance Information Institute, 60% of small businesses do not have business insurance. This is a problem because if these businesses were to experience a fire, theft, or another type of disaster, they would likely have to close their doors for good.

Business insurance protects companies from financial losses resulting from lawsuits, natural disasters, employee injuries, and more. While it is not required by law in most states, it is still something every small business owner should consider. There are several different business insurance options to choose from, and it can be challenging to decide which one is right for you. Business insurance policies are designed to protect companies from several different risks that they could potentially face. Some of these risks include:

Defining small business insurance

The Small Business Administration defines a small business as any company with 100 or fewer employees. While this is the official definition, some insurance companies have different criteria for what qualifies as a small business. Small business insurance coverage The type of business insurance you need depends on your company and the industry that you operate in. For example, a small retail store will need different types of insurance than a high-tech software company or a restaurant. As a small business owner, you can take steps to protect your company from the most common risks. Start by talking with your insurance broker about the available different types of coverage. Your agent can recommend a policy based on your specific needs.

What does small business insurance cover?

Business insurance can cover many things. A basic business insurance policy will usually cover the value of your property, such as your building, tools and equipment. It may also cover a portion of the money you get from clients if you have to stop working because of an accident or injury. Small business insurance can also cover the value of your clients' money if you have to stop working because of an accident or injury.

Who needs small business insurance?

You need workers' compensation insurance if your business has employees. You may also want to consider adding a commercial general liability policy that covers accidents that might happen at the office, such as slips and falls or faulty products. If you're self-employed and have no employees, you may still want to consider getting small business insurance. The rates for this kind of coverage are usually much lower than for policies that cover companies with employees.

How much does small business insurance cost?

The cost of small business insurance varies depending on the type of policy you choose, how many employees your business has, and how much coverage you want. The cost can also vary depending on your business's location and industry. Some insurance companies may also offer discounts to businesses that have been in operation for a certain length of time or have a certain amount of cash on hand.