Business Insurance: When Do I Need It?

Article by Ryan Fyfe

“Is it worth insuring my business?” This is the usual question that business owners have in mind when asked if they do have business insurance. The answer is simple. It is a big YES. All types of business must have a certain form of insurance for its business and for its employees. Non-profit and profit organizations are never excused for this. Even small and large scale business ventures should avail of the benefits of business insurance. The type of insurance you need depends on the type of business you have.

If you own a business with huge assets, will you not apply for theft insurance? If you own a security agency, will you not insure your employees with a life insurance? Business insurance is a need. The rule of thumb is that the Worker’s Compensation Insurance is a requirement if you have employees. Making a decision as to what type of insurance you need is easy. Here are the five (5) basic but valuable questions that will guide you in finding the right business insurance for you.

1. What are my choices for business insurance?Business organizations must insure the business in four different categories: asset, capital, health, and life.

2. Is homeowners insurance fit for my assets?Often, our first investment is our house. It is recommended not to withhold when acquiring homeowner insurance. It will be much better if you could pay for a guaranteed-replacement premium. It is a great relief when calamities happen. You may, of course, indicate a specific amount that can be covered on your insurance. But it may give you inconvenience if you will have to shell out for the difference if calamities happened. That is how business insurance goes.

3. Do I need to obtain office insurance as well?Yes, you will have to. The computers, phones, fax machines and the usual office equipments need to be insured and that is all for your benefit. Special business insurance may also apply especially if you meet your clients in your office whether on an occasional or regular basis.

4. I am driving when going to work or any places. Do I need car insurance?You are open and vulnerable to damages when you drive without any form of protection in your body. The same principle goes for driving a car without any car insurance. If, by accident, you hit another car, and you are not enrolled to any form of business insurance, will it not create a huge and undesirable damage not just to you and to the other person’s properties but most specially to your financials as well? That could have been prevented had you enrolled yourself to a car insurance.

5. Do I need to insure myself with a life insurance?Yes, you need it especially if someone is finally-dependent to you. The idea of having a life insurance is basic. It takes care of your income when untoward incidents happen. If you are not a married person and nobody depends on you in terms of financials, it can be considered optional. But if a family, a parent, a sibling, or anyone depends on your assistance, securing a life insurance must never be neglected. Life insurance is also your business insurance.

There is a lot more things to consider with regard to business insurance. The five basic questions above will lead you to one common principle: if you have a family, if you care about your health, and if you are earning for a living, then you need to insure your family, your health, and your business.

About the Author

Ryan Fyfe is the CEO of – An intuitive and free online employee scheduling tool for businesses of all sizes in all industries.

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