As a small business owner, you’re no stranger to opportunity...and you're no stranger to risk! Starting and running a small business requires no small amount of bravery.  No matter how fearless you are, there’s a limit to how much risk you can take on.  Small business insurance, while it may seem like an extra or even unnecessary cost, is a valuable shield against the real risks you take on!

Whether it’s driving your van full of equipment and instruments to a music festival in Texas or setting up a vendor booth at the North Georgia State Fair, it only takes one disaster to put you so deeply in the hole you can’t climb out again.

Here are the answers to all your questions about small business insurance.

Why do I need insurance for my small business?

No matter how conscientious you are, there are some things that are completely outside your control. A fire can destroy your shop. A cyberhacker can compromise the security of your online store. A visitor can get hurt falling on an icy patch in your parking lot. And the list goes on.

Besides the basic risks that confront all small business owners, you take on additional risk if you own a building or a fleet of vehicles, or if you have employees working for you.

What kind of insurance do I need?

The answer differs depending on the needs of your business or industry. If you have employees, chances are that you are required by law to carry workers’ compensation insurance. In some cases, general liability insurance may be required, too. And commercial auto insurance will be necessary if your business owns and maintains vehicles.

If you’re simply a vendor at the Central Florida Fair and the Orlando Fair, without any employees or company cars, you can probably get by with a much simpler insurance policy.

How can I pay less for business insurance?

As with any kind of insurance, it’s wise to shop around to look for the best rate. A word of caution about this: make sure the policies you are comparing offer the same coverage. If you already have insurance policies with another company, ask your agent about bundling the policies together; many insurance companies give discounts for multiple policies.

You may be able to lower your rates by taking steps to minimize risk. Consider installing burglar alarms and sprinkler systems. And always keep your property well-maintained and up-to-code.

Is there one policy that covers everything I need?

Again, the answer to this question varies depending on your business or industry.

Most small businesses find that a traditional Business Owners’ Policy is sufficient. This covers property damage, business interruption, and liability insurance.

A Business Owner’s Policy protects you from loss in the event of a catastrophe (for example, if a fire broke out at the Shipshewana Flea Market while you were working there) . It also protects your revenue if you’re unable to do business for a while. And it provides a buffer in the case of settlements or legal fees.

Owning and running a small business will always entail risk. But purchasing the right insurance policy can go a long way towards minimizing the amount of risk you have to take on.