What You Should Know About Business Insurance

When it comes to protecting your business best, you must have insurance. Learn what you need to know most about having business insurance, so you can work with your commercial insurance broker to work out the best insurance policy for your needs.

You need insurance even if you are self-employed

Whether you work out of your home or have a small office where only you are employed, you have to have at least liability insurance on your business. The reason for this is simple--in the event of a customer suing you over your service or even getting hurt while on your property, you need liability insurance to protect you. As a self-employed individual, your business is not protected outside of your personal assets. This means that if your business takes a legal beating, you take a legal beating, and it may cost you all your private assets in order to repair. Have liability insurance, at the very least, to protect your small business in all ways.

There are many types of business insurance

From general liability insurance to protecting your products, you need to know the type of insurance that will work best for your type of business. Sit down with your commercial insurance agent so you can discuss the specific risks related to your field of work. Owning a car repair shop, for example, will carry more potential liabilities than running a craft store since it involves working with expensive vehicles and potentially dangerous tools--whereas a craft store carries less risk. In other words, business insurance is not a one-size-fits-all type of deal. Your broker can help you customize your insurance needs to protect you and your business, and can even overlap different types of insurance so you are covered in as many ways as possible.

Not having insurance is not worth the risk

You may think your small business doesn't make enough money to warrant paying for business insurance, but this is a hefty risk to you. If you are self-employed and not an LLC or Corporation, you run the risk of losing everything in the event of being sued. This is because you don't have a business entity to hide behind as a sole proprietor. If your business goes under, your personal finances are going down with the company, and you can face personal ruin as a result. If you choose not to have business insurance, know the risk you are taking on, and at least consider incorporating your business into an LLC so you can minimally protect yourself.

Business insurance is extremely important in helping you maintain a healthy business and keep your company safe from legal repercussion. Discuss all the things you should know about business insurance with your commercial insurance broker, such as someone from Acumen Insurance Group Inc, so you can get the right insurance for your needs- and know the risks you are taking if you fail to insure your business.