What Kind Of Insurance Do I Need To Start A Small Business?

What Kind Of Insurance Do I Need To Start A Small Business? 

Your entrepreneurial dreams are finally coming true. You’ve drilled down on the product or service you want to offer. You’ve researched your target market to make sure there’s a need for what you’re selling, and you’re ready to open your doors to the public. It’s an exciting time! We wish you all the success in the world and hope you make a big impact in your market. 

But first, do you have the insurance you need to open a small business? Though insurance might be the last thing on your mind as you prepare to open your small business, it is a critical part of the equation. Small business insurance policies protect you, your business and all your hard work in case the worst happens. Here are 5 types of insurance you absolutely must have when you open your small business. 

  • General Liability Insurance 

General liability insurance protects your business in case someone is injured at your location. You’ve likely heard of “slip and fall lawsuits” in which a customer takes a fall at a store and then sues the owner for the cost of their medical bills and beyond. General liability insurance would cover slip and fall claims and other incidents where someone is injured in your business. 

  1. Product Liability Insurance 

If you sell products, especially products that would be ingested or come in contact with the skin such as food items, supplements or skin care, you should invest in product liability insurance. Product liability insurance protects you in case one of your products causes illness, injury or damage to a customer. 

  1. Errors and omissions insurance 

Errors and omissions insurance pays for your legal fees and covers claims from customers who say they were financially damaged by negligence on your part. For example, let’s say you’re opening a talent agency. You advise a client not to take a movie part because you think the movie will flop. The movie is released, it makes millions, and all its actors become huge stars. Your client could sue you for damages, claiming it was your bad advice that caused them to lose out on fame and fortune. Errors and omissions insurance would cover your legal fees and legal judgments against you up to your policy limits. 

  1. Worker’s Compensation Insurance 

Worker’s is required in South Carolina for any business that employs four or more workers, with some exceptions. If you have a physical location where you require employees to work, or you send employees out to other locations as part of their work, you need worker’s compensation insurance to cover employees who are injured on the job. Medical bills from job site injuries can turn into hundreds of thousands of dollars fast. Don’t risk it! 

Need help getting small business insurance for your new venture? 

Edwards Insurance Agency in Taylor’s, SC, has helped hundreds of South Carolina entrepreneurs protect themselves and their businesses with small business insurance policies. Give us a call today. We’d be happy to answer all your questions and get you set up for a profitable and safe first year!