Small business insurance is a category of types of insurance coverage offered to small business owners. There are several types of small business insurance that may fit your particular business’s needs. Essentially, small business insurance allows you to pay premiums today to be covered against certain insured events or losses that may or may not happen in the future. Without small business insurance, some businesses may be forced to close or liquidate if they have an accident or event that costs the company more than they can afford to pay.
Your small business insurance coverage will vary depending on the type of small business insurance policy you choose. Some insurance policies cover business automobiles and their drivers. Others cover accidents in the workplace or damage caused by errors and omissions. Talk with your business insurance agent to see which forms of coverage make the most sense for you. There are even options to cover business interruption to make sure income continues to flow when covered circumstances outside of the normal course of business disrupt your revenue.
Small business insurance coverage is a low price to pay when a major event causes serious damage to your business. The future is unpredictable and it is virtually impossible to be financially prepared to handle every possible negative covered event that could happen to your business. If you’re properly insured, your company may survive. It may even thrive thanks to your foresight. Without it, your business could end up shuttering for good.
Certain types of businesses offer their owners no protection from the liabilities of their companies. Even if you set up a business structure that provides owners protection from their business’s liabilities, owners can sometimes still be liable if they don’t run their business correctly. This means if your business gets sued for a large amount of money it can’t cover, the person suing you may come after your personal assets such as your home or investments in some cases. That’s why all small businesses with potential liability issues should have appropriate insurance coverage. Having small business insurance won’t rid you of any liability you may owe, but it can offer enough coverage to pay out legitimate and successful claims against your business. Without it, you may have to claim bankruptcy in extreme cases if you have personal liability due to your business structure.


Figuring out your small business insurance needs and finding the best insurer for your company doesn’t have to be a completely overwhelming process. Take a look at this list of best insurers to see which ones offer the coverage you need. Then, get quotes to see which company gives the best deals.

For certain businesses, you may need to explore other options, as well. 

Make sure to read the policies you’re considering carefully to understand what it does and doesn’t cover before you purchase. Once you’re happy with a policy and a price, buy the coverage that makes sense for your business.

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Lance Cothern is the founder of Money Manifesto, a personal finance blog that helps people to master their money so they can live their ideal life. In addition to blogging, he enjoys spending time at the beach with his family. You can connect with Lance on Twitter, Facebook, and LinkedIn.