Operating without business insurance can be a hazardous move for any small business. Not only can it lead to fines and penalties, but it can also leave you exposed to physical harm and financial losses. Even if your state doesn't require small business insurance coverage, it's still a good idea to have it. The right coverage can make or break a business.
Theft or fire, for example, can cause devastating losses to uninsured businesses, and a personal injury lawsuit could make it difficult for them to pay legal fees. Good insurance provides peace of mind. Without business insurance, the company (or possibly you) will be responsible for paying any costs as a result of an unexpected event. If something disrupts the daily operations of your company and, in turn, causes your company to not generate revenue, this is a major interruption for your company.
As you can see, whether you have a physical store or an online business, you face all kinds of risks that business insurance can protect you and your business from. Most of the country has laws that state that businesses must have certain types of insurance or a certain amount of coverage. In addition, excellent coverage can protect your business in high-risk fields, such as construction and agriculture. However, without business insurance, your company will always be at risk of failure because you won't be unable to survive if the worst happens.
Investing in or reevaluating your business insurance can provide you with coverage you didn't expect to need. From bank accounts and point-of-sale systems to insurance and business licenses, LegalZoom partners can help you turn your big idea into a great business.