Small Business Insurance Basics

Small Business Insurance Basics

Commercial insurance is a must have for any small business. Commercial insurance can protect your business from risks resulted from unexpected and unfortunate events, liabilities, and losses. There are numerous small business insurance options available, and it is important to find the right type and amount of insurance for your business.


Every business is different, and the insurance they need varies. Several factors determine what type and how much insurance you need including business structure, business activities, location, the number of employees, and more. There are two main types of commercial insurance: commercial business insurance, which is usually not required by law, and employer insurance, which is required by law. Although commercial business insurance is not a requirement, it can protect you and your business in the even of a lawsuit, natural disaster, or other unfortunate event.


A common misconception is that having your business under a LLC or corporation reduces your need for small business insurance. While these types of company structures protect your personal assets from business liabilities, it does not protect your business assets. Commercial liability insurance protects your business from liabilities resulting from disasters, vandalism, fire, and other events which may cause significant loss to your business.


State or local laws may require certain types of businesses to hold some form of commercial liability insurance, so it is important to check your local laws to make sure you have at least the minimum amount of coverage required by law. Even if commercial liability insurance is not required, it is highly recommended that your business carry this insurance. Whether or not you have business insurance can make or break your business in the event of a disaster.


Your business may also be required to carry employer insurance such as worker’s compensation insurance, or disability insurance. You may also be required to carry unemployment insurance. STL Insurance Stop will work with you to see what your business is required to have, as well as insurance that will benefit your business.


Call STL Insurance Stop today at (314) 475-5637 for rates and more information about our commercial insurance options.