If you've just started a small business, it's important to make sure that you are legally and financially protected against risk. Here are three questions you should ask to find out if you need business insurance.
1. Do customers come to your workplace?
If customers come to your office, business liability insurance is essential to protect you from a lawsuit if someone gets injured. This is true even if you work from home, since business clients won't be covered through your home or renters insurance policy.
2. Do you have valuable merchandise or equipment?
If you own business-related equipment or products, they aren't covered by your home or renters insurance if they get damaged or stolen. You need business property insurance to protect the value of your business assets.
3. Do you have a home-based business?
If you have a home-based business, own few business assets, and customers don't come to you, a home insurance business rider may be a solution. This rider may cost about $100 a year for up to $2,500 in property coverage. If you need more, you can purchase an in-home business policy, which covers up to $10,000 for about $500 per year.