If you are just starting your own small business, there are a few things that you need to understand about insurance coverage as a small business owner. Business insurance is vital, even if you are running a one-person show. Business insurance protects the investment you are making into your dreams.

#1 All Businesses Need Insurance

The first thing that you need to understand is that all businesses need insurance, even when you are the only employee. What really varies is the type of insurance that you need. 

For example, if you create paintings and sell them on Etsy out of your home, you need insurance that will cover the replacement costs of all your supplies and products should your house catch on fire or your home gets robbed. Since those items are used for business, they are not going to be considered personal belongings, and will not be covered by your homeowner's insurance policy.

Or, if you run a small deli, you are going to want to have worker's compensation insurance as well as insurance that will cover you if your power goes out and all of your food goes bad. You are also going to need a general liability coverage that will protect you if a customer is injured at your place of business or gets sick from your food. 

The type of insurance you need may vary, but what doesn't vary is that all business comes with risks that can be mitigated and controlled through the use of the right business insurance policy.

#2 Cover Yourself Online

If you conduct any business online, you need to make sure that you have a specific insurance policy to protect your online activities. Cyber insurance is foreign to many individuals, but it is an important insurance policy to have if you use the internet at all to promote or conduct business. The internet is a pretty integral part of the business world nowadays, which is why most businesses should invest in a cyber insurance policy. 

Cyber insurance will help protect you if any personal or financial information that you collect from customers and business relationships is hacked and stolen. If you collect information at all online or make payments online, cyber insurance is a must.

#3 Always Evaluate

With commercial insurance, you need to make sure that every six months to a year, you evaluate where your business is heading and what type of insurance it needs. Your business insurance needs will change as your business changes. For example, if you go from being a storefront only business to an online business, you are going to need cyber insurance. If you hire more employees, you are going to need to increase the number of employees covered under all relevant policies. Don't find yourself stuck in a bind because your insurance and business realities don't match up. Sit down with your insurance agent at least twice a year, go over any changes in your business, and make the proper adjustments to your business model.