Starting a Business: 5 Reasons You Need Commercial Insurance

You have put your heart, soul and energy into building a small business. Even if you are still operating it from your garage or basement, there are a variety of reasons that you will want to secure commercial insurance. Here are some of the reasons cited most often for getting commercial insurance.

Protects against a Multitude of Catastrophes

There are many different catastrophic events that can almost ruin your business. In fact, the United States Small Business Administration recommends that small businesses buy insurance against natural disasters, accidents and lawsuits. In fact, in some cases, you cannot qualify for loans without getting insurance.

Protection against Lawsuits

Even if you have carefully cultivated your clients so that you have the very best ones, if something goes wrong, then they may have no choice but to sue you. This is especially true if you are working as part of a larger contract. The cost of defending your company against a lawsuit can put your small business under even if you did nothing wrong, so make sure that you are part of an insurance network.

Protection of Your Investment

Chances are that you have made a substantial investment in tools and technology needed to operate your business. If a thief decides to steal them from you, then you have lost everything unless you have insurance. Additionally, commercial insurance is usually designed to get you back up and operating quickly so that you do not have many down days.

Protection from Errors and Omissions

While smart business people will draw up contracts trying to protect their business from everything conceivable that can happen, life can still get in the way. One of the most common reasons that small businesses end up being taken to court is errors and omissions. This insurance helps protect against inadequate work or negligent actions because even if you did nothing wrong, the cost to defend yourself can be substantial.

Protection against Death

If your business relies heavily on your ideas or that of a partner, then a death can cause the business to fail quickly. Commercial insurance also helps protect against illness or injuries that can leave a company searching for a new person to fill key positions long term.


There are many reasons that you need commercial insurance. In fact, running your business without it is like having a ticking time bomb waiting to explode because of the multitude of things that can go wrong. Therefore, buy yourself peace of mind by protecting your company today.

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