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Why Insurance is Needed for a Small Business Owner

kokou adzo




You may have a wonderful business concept, a small business that is flourishing, a fabulous location and a nice location.

But one single incident can change your fortunes adversely. This is not about painting a gloomy scenario; it is about being realistic. You may not have the power to predict or prevent untoward incidents, but you surely have the power to mitigate the problems and keep the risks low.

All that you need is insurance. 

You need insurance that meets your specific requirements, considering the possibilities of risks exposure to your business.

Pick A Flexible Policy That Evaluates Your Needs

Many business owners often end up taking a policy because other businesses found them useful.  This is not the right way to go about choosing a policy for yourself. You need to work out the suitability of a policy to meet your requirements. Imagine taking a policy only to find that you are not covered for a particular eventuality?

That will affect you badly.

For instance, the business next door may not need to protect itself from a possible lawsuit arising out of product advertisements. So you should the right insurer to help protect your business. The best option is to choose a policy that covers your business profile and needs; choose the ideal policy from one of the many offered by reputed agencies like State Far, Hiscox, Nationwide, The Hartford, Travelers, Liberty Mutual, and Progressive Commercial. You can use sites like Insureon, SavingLoop, Progressive, Referral Codes and G&G Independent Insurance to help you get business insurance discounts and compare small business insurance quotes.

Accidents Can Happen Anytime To Anyone

Despite the best precautions and procedures that you have in place, you will never be in a position to prevent an accident. You can reduce the chances of accidents with the right processes, but eliminate may be difficult because people make mistakes.

The best option to protect yourself from liabilities is to have the right kind of small business insurance resource. This will ensure that you will be in a position to handle any claims made by an employer in the unfortunate event of an injury at the workplace. Negligence on the part of an employee can become your liability. Without insurance and the capital to protect yourself, you may have to resort to finding ways to make money quickly to help cover your expenses.

Keeping Yourself Covered From Possibilities Of Bad Weather

You may not be in a position to handle the wild swings of nature. A bright and sunny day can quickly turn into a day where you face gale-force winds and tornadoes that can take roofs away. The extent of physical damage to buildings from nature’s fury is hard to predict.

But you can surely be prepared.

Be insured and be prepared to take care of any possibility of damage to your business from the weather. It is important that you consider all the aspects of the weather and the possibility of weather playing havoc with your business. Choose the right policy and ensure that you get back to routine quickly without having to spend a fortune.

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You need a comprehensive plan in place to tackle all emergencies. Never settle for a plan that will give you limited cover. Evaluate your risks thoroughly and ensure that you are covered right and tight. And it is also necessary to take a plan that is affordable. If you sign up for a plan that is beyond your ability, then you are likely to end up as a defaulter.

Strike the right balance with the ideal plan.

Why Startups Need Insurance

Startups need insurance to avoid dramatic losses. Here are the following types insurance startups might want to consider:

  • Property Insurance: This type of insurance is a must for startups that own a workspace or lease a property. Property insurance covers inventory, furniture, and company-owned equipment. 
  • Property Damage Insurance: It covers damages to property caused by theft, fire, and natural disasters. 
  • Workers Compensation Insurance: This insurance covers workers’ medical treatments and disability benefits when injured in the workplace, including death benefits.
  • Professional Liability Insurance: This type of insurance is also called errors and omissions insurance. It protects businesses from negligence claims due to mistakes or failure to perform. Simply Business explains that liability insurance helps cover tools and equipment, bringing peace of mind to startup business owners that they won’t run out of money because of expensive repairs and replacement costs.
  • Product Liability Insurance: Startup manufacturing businesses should consider getting product liability insurance. It will help ensure that manufacturers are protected against a lawsuit from damages due to product issues.

Insurance Is A Good Investment

Many people get the basic type of insurance for compliance purposes. It would be a good practice to perceive insurance as a good investment because it can save you from potential bankruptcy. Think of insurance as your savings for future use, not a loss. The return of investment is triple or even higher if anything goes wrong, saving your business and your personal finances.  


Whether you’re a startup or long-time small business owner, availing of insurance is important. It will protect you from costly expenses and legal consequences if anything goes wrong. Don’t think of it as an extra expense, but a way to save you more money in the future.


Kokou Adzo is the editor and author of He is passionate about business and tech, and brings you the latest Startup news and information. He graduated from university of Siena (Italy) and Rennes (France) in Communications and Political Science with a Master's Degree. He manages the editorial operations at

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