Skip to main content

Business Insurance

Running a small business involves a significant investment. Business insurance protects your investment by minimizing financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, or a natural disaster. Unless you are an employer, business insurance is generally not required by law, however, it is common practice to purchase enough insurance to cover your assets. If your business is an LLC or a corporation, your personal assets are protected from business liabilities; however, neither business structure is a substitute for liability insurance, which covers your business from losses.

Your state government determines insurance requirements for businesses. Most states require businesses with employees to pay for workers’ compensation insurance, unemployment insurance, and state disability insurance. Your state may require insurance of specific business activities. For example, if you own a car or truck and use it for business purposes, you may be required to purchase commercial auto insurance. Finally, your financial lender or investors may require you to maintain life, business interruption, fire, flood or other types of insurance to protect their investments.

Learn About Business Insurance:

Insurance Resources

The following provide a wealth of guidance to help you make informed decisions when buying insurance. Make sure you visit your state’s office of insurance. State governments regulate the insurance industry, and provide a number of services to consumers and small business owners.
  • InsureU for Small Business – Provides helpful information, tips and considerations about insurance for owners of small companies and home-based businesses. Produced by the National Association of Insurance Commissioners (NAIC), an organization of insurance regulators.
  • Information About Insurance Companies – Covers information about insurance companies before you buy. Complied from state government department of insurance, this database includes information on complaints filed by consumers, financial information, and whether or not the company is licensed by the state.
X