Small Business Insurance: What Do You need?

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In the excitement of starting a new business, it is easy to get caught up in marketing, setting up shop and planning the grand opening. While those are very visible aspects of your business, there are also behind-the-scenes matters to address, like business insurance.

The right small business insurance package is critical to your company’s long-term success. The type of industry you are in is the first factor to consider, but several others come into play when you’re deciding on the best coverage. Insurance for a service business might not be the right option for a business that sells or manufactures products, for instance.

Having small business insurance helps protect your hard work and investment in your business when something unforeseen occurs. By working with an agent to choose the best coverage for your business, you can keep your business running in spite of those challenges and circumstances.

Assessing your risks

An insurance agent can evaluate your potential needs and risk, and come up with a plan to fit your business, said Jeremy Haldeman, an agent with American Family Insurance. To accomplish that, the agent will work with you to perform a risk management assessment, which will give you a list of potential events that could lead to a loss, determine the estimated cost of such a loss and tell you how best to address each risk.

“Every business and business owner is unique and requires different levels of protection and care,” State Farm agent Gary Albert said in a 2010 email interview. “An experienced agent with a proven brand can offer resources to benefit the customer that otherwise may not be available from a call center or Internet-only-based carrier. There is also some personal accountability with a local agent to help with this process, as well as a trusted resource to turn to throughout the business life cycle.”

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