Small business insurance is simply a type of business insurance specifically designed for smaller businesses. If you run a small business, your needs and priorities are likely to be different than those of a large national chain.

You should not forget that your company is adequately protected some types of insurance. Staying competitive also often means providing insurance assistance to your employees.

Why do you need small business insurance?

Small business insurance is there to help you when your business encounters unexpected difficulties that can ultimately lead to damage and loss of income. With the right insurance coverage, small business insurance can help you get back on your feet. It covers the financial consequences of the damage if you have to close for a period of time. It can offer important protection to small and start-up businesses, because a loss of profit can seriously affect your business.

Some types of insurance are required by law, such as public liability insurance if you have employees and motor insurance if you use a vehicle for work. However, what other insurance coverage you need depends on your business.

Do you need special insurance for your company?

Whether you run a guest house, work from home, or own a restaurant, your business insurance needs are different. The size of your business can also make a difference. Large companies may need higher insurance coverage. Small and medium-sized enterprises specializing in a specific or unusual service/product may need custom-made insurance.

It is important to assess the risks your business faces and select appropriate insurance. For example, if you are an accountant or a lawyer, professional liability can cover you, as it defends against unjustified claims against you.

What insurance covers risks if you work from home?

It depends on what type of business is being run. You should insure any business activity. If you have appliances or inventory at home, you may find that your regular home insurance does not cover you for loss or damage. You may even find that working from home will void your home insurance if you have to make a claim.

So better play it safe. Therefore, if you are working from home, carefully review your insurance records to find out if you are covered or if you need to purchase separate insurance.