When in Small Business Insurance Absolutely Necessary?

[Powered]

I've been getting together the necessary tools to build my business more so it can be my full time income with time to spare. I don't think my business is necessary risky, but it does require a lot of time in writing and web building (so I can't consider it my actual job just yet). I've been reading conflicting info about when small business insurance is actually necessary. According to some books it seems necessary to buffer yourself, but every site or app I visit seems to focus on liability insurance for contractors, etc. I've tried several apps like Insurance Toad and direct insurance sites, and the focus seems to be on liability. Is it absolutely necessary to have insurance as a small business owner just starting out if you're not in a contracting type or injury-prone business? Or is it when you get larger and add employers? Does anybody else have it here? I'm starting to wonder if I should focus on other aspects of my business more than worrying about this if it isn't necessary.

[mauritafattorini357]

just a heads up whether its prone injury or not in business we cannot say that there's no accident it will just happen in an instant so i suggest you really get liability insurance and its also good for your company. It's just a good preparation to have insurances and also if the business gets larger the liability insurance will get higher also.

[Harold Mansfield]

Well...it's not really all one thing. Assuming your business is primarily a desk job, and primarily a one man show like mine...

You may want to incorporate to protect your personal assets from your business assets.
You may want to get home owners or renters insurance to cover your equipment.
You may want to get some supplemental insurance like an Aflac in case you are laid up for a long period of time and can't bring in income.
..along with that you are going to need personal health insurance. You are the product, so you also need to be covered for damages, and repairs.

If you have a physical office outside of the home, then yes you definitely want business insurance to cover loss, theft, fire, water damage and so on.

[tallen]

Do you need business insurance? Ask yourself, do you have any assets that you could not afford to lose....

Liability isn't limited just to personal injury situations. For example, are your clients relying on your professional advice when they are making decisions that affect their finances or lives, whether for their business or personally? Maybe you need Professional E&O (errors & omissions) insurance...