When you go into business, you'll potentially be exposing yourself, your home and your family to a variety of risks. You need to think about how you'll manage those risks and find out if you need small business insurance to help handle them before it's too late.
- Will you need health insurance? If so, how can you get it and how much is it going to cost? When one spouse is still working, the ideal situation may be to get the other included on the working spouse's health insurance coverage if you can. If not, either the cost or the lack of availability, or both may prevent you from starting your business. More on health insurance...
- If you're carrying inventory, need equipment or are storing hazardous materials what kind of property insurance will you need to avoid suffering financial hardship? Will you need a small business insurance policy for this purpose and how much will it cost?
- Will you need liability insurance? Where can you get liability coverage under a small business insurance policy and how much is it going to cost? Will you need errors and omissions coverage?
- What about your auto insurance? Will you be using your car for business?
Remember, your homeowners' and auto insurance policies weren't designed to cover your small or home business. Your best bet is to shop for small business insurance that can help you manage your exposure to loss, so do your small business insurance and health insurance shopping ahead of time to save aggravation and surprises later.
Small business insurance can be a major expense of doing business, but some coverages like General Liability may be quite reasonable depending on the nature of your business.
Record any small business insurance cost estimates for this step - you'll need them to determine your startup and operating costs.