the small business resource center

Insurance

Insurance can contribute to the overall success of your business by reducing the uncertainties. It can also reduce employee turnover, improve your credit at the bank, make it easier to sell to customers on favorable terms and help keep your business running if a covered incident interrupts your normal business operations.

You should purchase a number of basic types of insurance. If you are operating a business from home, your household insurance probably will not cover your business venture. A separate policy or upgrading your current house insurance to cover the business is a necessary cost of doing business. The importance of good insurance management is too important to overlook. It is essential that you discuss your insurance needs with your agent. Whether you deal with an independent agent, insurance broker, or work directly with an insurance company, be certain you’ve done comparison-shopping before you sign up. Depending on the type of insurance you are purchasing, various factors will affect your insurance premium. The lower the premium, the higher the deductible; the higher the premium, the lower the deductible. Some firms have better track records in paying dividends and claims. Ask your peers, associates, or even trade associations in your state for insurers with a good reputation.

Insurance Checklist

Insurance matters are addressed in two SBA publications: MP-20- Insurance Options for Business Continuation Planning, and MP-28- Small Business Insurance and Risk Management Guide. Both are available online at the SBA Library site.