Most people who are planning to start their own business are not surprised to find they should get insurance for it. It's not until they actually start looking into buying a policy and see the many different choices available that they realize it can be somewhat different than buying insurance for their homes and cars. If you're asking yourself What kind of business insurance do I need?, it's time to start learning about how business insurance works.

Why Do I Need Business Insurance?

One good reason you should get insurance for your business is that it lends you credibility. Partners, clients, and employees consider a business with insurance more trustworthy. However, more importantly, it protects you from unexpected circumstances which could cost you so much that you'd have to close your business. Insurance can cover the expense of various types of business loss.

Natural Disasters

Hurricanes, tornadoes, flooding, wildfires, and earthquakes are all disasters that commonly occur all over the country. Not only can these damage your property, requiring you to cover the cost of repairs, but you may have to close down your business for an indefinite period of time even if you don't personally sustain any damage, resulting in significant loss of income.


Just as with your homeowner's policy, your business needs to be covered in case someone sustains an injury on your property. But you may also be liable if anyone is harmed in any way due to the products or services you sell, including any financial loss they might experience.


If you or one of your employees accidentally drops a box of expensive merchandise, equipment, or supplies, these will need to be replaced. If you are not in a position to cover the entire cost yourself, insurance could be a lifesaver.


If you sell physical goods, theft is always a possibility. Replacement costs could have a significant impact on your bottom line without insurance.

How Do I Go About Getting Insurance for My Business?

1. Risk Assessment

You will need to determine how vulnerable you are to incidents that could damage your business, such as those mentioned above. Then you have to figure out what the costs could amount to, and insure your business appropriately.

2. Compare Policies

As with any insurance, costs and terms will vary greatly. So you will need to compare prices and benefits from several different companies to determine which will best fit your needs and budget.

4. Annual Re-Assessment

Your business could change significantly from year to year, in both growth and profits. You might purchase new equipment or even change locations. It is imperative that your insurance keep up with any major change in circumstances.

You may find it easier to enlist an insurance broker, who can help you do all of those things because they can get to be somewhat bewildering. For instance, regular property insurance covers fire and storm damage, but not floods, earthquakes, or even very high-value items. You'd need a separate policy or riders to the original one. Download our e-book and contact Casey Kuckert at Society Insurance Network for a consultation and more information.

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