There is a lot riding on your small business. You have invested your money, time, and sweat equity to build a company that will be successful for years to come.
Even if you make all the right business moves, unexpected costs can arise at any time. Accidents, natural disasters, data breaches, and other unexpected occurrences are an ever-present risk to business owners. Small business insurance provides additional protection for your enterprise and could be the difference between a bump in the road and a door-closing catastrophe.
Businesses that were operating during the COVID-19 pandemic do not need a reminder of how a disaster can strike out of nowhere and inflict a potentially fatal blow.
Although many businesses were beginning to bounce back from pandemic shutdowns and restrictions, they are now grappling with new challenges caused by price increases and a tight labor market. At a time when there are significant known risks to business, the threat of the unknown looms even larger. For example, an unexpected disaster or cyberattack could result in significant loss that threatens a business’s continued existence:
Is your business prepared for an unexpected cost or operational interruption? It might not be if you do not have business insurance.
While most types of business insurance are optional and simply provide an extra layer of protection, others may be required by law:
Businesses that are just starting up should consult with a local business attorney to ensure that they have purchased all legally required insurance policies. Beyond that, small businesses should consider these common types of business insurance:
Opening a business is inherently risky. There is no guarantee that things will go as planned. The thrill of striking out on your own, with few assurances, might be part of why you decided to open your own business. But there is a difference between taking calculated risks and recklessness. Not having the right insurance coverage arguably falls in the second category. While insurance cannot insulate you from all risk, it is a fail-safe that most businesses cannot afford to go without.
We cannot prevent natural disasters or other unexpected challenges, but we can assist you in optimally structuring and maintaining your business to protect it against legal risks. To discuss any legal questions you may have regarding your business, reach out to our office to schedule a meeting.
 Diana Farrell & Chris Wheat, Bend, Don’t Break: Small Business Financial Resilience after Hurricanes Harvey and Irma, JPMorgan Chase Inst. (Feb. 2018), https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/institute/pdf/institute-bend-dont-break.pdf.
 Robert Johnson III, 60 Percent of Small Companies Close within 6 Months of Being Hacked, Cybercrime Mag. (Jan. 2, 2019), https://cybersecurityventures.com/60-percent-of-small-companies-close-within-6-months-of-being-hacked/.
 Maddie Shepherd, 30 Surprising Small Business Cyber Security Statistics, Fundera (Jan. 23, 2023), https://www.fundera.com/resources/small-business-cyber-security-statistics.