What Type of Insurance Do Small Business Owners Need?

September 8, 2021

As National Business Women’s Day approaches again, the trends in women-owned businesses are more exciting than ever. With more and more women eager to carve out LLCs, S-Corps, and independent operations of their own, there’s never been a better time to jump in and seize the moment as an owner.

As with all great business plans, however, assessing insurance needs thoroughly before growth happens can prevent a lot of headaches and “growing pains” later.

What Type of Insurance Does My Small Business Need?

According to a 2021 survey of 2000 business owners by the Small Business Trends Alliance (SBTA), women-owned businesses are most likely, at 14% of the total, to be related to health, beauty, and fitness services, followed closely by business services at 12%.

While all of these niches are fast-growing and promising places to start a business, they also carry significant liability potential, which means liability insurance is a must.

• Are the products or services being sold capable of potential bodily harm?
• Is the business operating out of a location that clients will travel to?
• Will the business be entering or operating out of a secondary location?
• Will the business utilize any vehicle(s) for official business?

Most personal insurance coverage – e.g. personal homeowner’s insurance policies, personal auto insurance policies, etc. – are not compatible with or suitable for covering business operations.