Business Insurance

Business insurance refers to the combination of coverages or policy types that business owners buy to protect their businesses. There isn’t a single policy that protects a small business. Some euphemistically refer to general liability insurance as “business insurance.” However, in reality, insurance for your business is likely going to be a range of policies required to fit your unique risk profile. Review our business insurance checklist to see what coverages are right for your organization.

The simple answer is, “yes.” In fact, it can be argued that sole proprietors are more at risk because they are personally responsible for their business’s liabilities and debts. The sole proprietor places their personal assets, like bank accounts or real estate, if their business becomes financially liable for a claim or loss.

Do freelancers need business insurance? This answer is basically the same. Freelancers are typically sole proprietors, so the same personal liabilities will likely apply.

For any business, regardless of organizational structure, it’s unavoidable, accidents happen. However, the financial consequences can be managed with a good small business coverage plan.

In most states, worker’s compensation is required by law. Additionally, if your business owns a vehicle, commercial auto insurance may also be legally required.

While many other business insurance types may not be required by law, some may be required in order for your business to sign a lease or enter into contracts. For example, you may need general liability for a commercial office or warehouse lease, and professional liability to contract with some vendors.

Whether coverage is legally required or not may not be the right way to view your business insurance strategy. Ask yourself a few questions before you buy business insurance, and you’ll begin to develop a proper insurance plan for your business.