Get tips for choosing the right insurance to protect your #smallbiz.

When you are starting a small business, every dollar counts. One best practice that all small business owners should consider is liability insurance. Most of the information out there about liability insurance comes directly from insurance providers, so it is important to do extensive research to ensure that you are relying on objective information to make business decisions.

Choosing the Right Insurance

There are a variety of options when it comes to liability insurance. The coverage that is required for your business may vary if you have employees. Outside of coverage for employees, injury and property damage liability insurance protects you from a variety of legal claims including bodily and personal injury as well as property damage that can occur during day-to-day business operations. There are many types of liability insurance that you may want to consider for your business, so SCORE offers a free, one-hour Small Business Insurance Workshop  to help you get started. Learn more about the different types of business insurance that you can purchase to help minimize risk.

Speak to a Professional

After you research your options, you’ll want to speak to an experienced, licensed insurance agent to go over the fine details of your business insurance needs on an annual basis. Why annually? Things change. You may have a larger, more diverse workforce, more equipment, or maybe you moved into your very own office. All these changes need to be accounted for in your coverage plan. The type of business that you own will largely dictate which type of insurance (and how much) you will need. And remember – no one knows your business as well as you do, so take the time to consider any and all perceived risks and be sure to flag them in the discussion with your insurance agent.

Employment Insurance

Each state has its own laws for employers. If you are planning on moving your business or opening another location in a new state, this is something to pay very close attention to.  Again, do your research! Just like business liability insurance, there are different types of employment insurance requirements. Check out this article on insurance requirements for employers to learn more.


Here are several additional resources that can help you choose the appropriate insurance for your small business:

Article written by the SBA.

The SBA is an independent federal agency that works to assist and protect the interests of American small businesses. The agency delivers the answers, support and resources small businesses need to start-up, grow and succeed through district offices throughout the U.S. and a network of resource partners including SCORE. | Facebook | @SBAgov | More from the SBA

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