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Insurance policies every beginning business needs

On Behalf of | Dec 30, 2022 | Risk Management

It’s exciting to start your own business – whether it’s something that you’ve been planning for ages or something that happened after a sudden spark of inspiration.

However, operating your own business does carry some potential risks. You can end up in a legal dispute with an unhappy customer, fighting over a contract obligation with a supplier or distributor and more. This is why every entrepreneur needs to consider the different types of business insurance they need to mitigate their potential liabilities.

What insurance is most important for your small business?

Every situation is a little different, so exactly what you need may depend partially on the type of business you’re operating. A home kitchen, for example, may have vastly different insurance needs than a website design consulting firm.

Just the same, here are some insurances that may be the most important for everyone:

  • General liability policies: This is the kind of insurance that you need if your customer claims that they fell over the unsecured doormat inside your store or your competitor alleges that you stole their product.
  • Key person insurance: Are you launching your business with a partner or two? What happens to the business if one of you suddenly dies or disappears? You can give potential investors some security through key person insurance. This offers a safety net that can help you stay afloat.
  • Business income insurance: Everything from a natural disaster to social upheaval can cause an interruption in your normal operations. Most small businesses simply cannot afford to be closed for even a few days – let alone weeks or months. This kind of insurance can provide some necessary relief.


It’s good to remember that some insurance policies don’t just provide a check – they also provide defense services if you’re facing a lawsuit. That’s an additional value, since it means you don’t have to handle things yourself while still trying to keep up your operations.

Like many other start-ups, you’re probably operating on a thin budget – so you want to stretch your dollars the furthest. That means making careful choices about your risk management strategies. Experienced legal guidance can often make it easier to understand where your biggest liabilities lie. It can also help you make sure you negotiate the right insurance coverage.