Whether you are a large corporation with hundreds of employees, a small business with a team of 10 people or an individual with your own new venture; any business you own needs insurance. Apart from regulations, insurance helps you prepare for the unexpected and acts as a safety net to get you out of bad financial situations. 

Why do I need insurance for my small business? 

There are many reasons why small businesses may require insurance. Some of these are listed below: 

  1. Mandated by Law – You need an insurance policy for your business since the regulations demand it. It also covers you from various financial losses.
  2. Employee and Customer Protection – Most states require you to have insurance to compensate your workers in case of accidents or customers in case of damage to property and other such liabilities.
  3. It builds credibility – When you are armed with the right insurance policies it sends a positive message to your clients and employees. It shows that you are a responsible business owner who takes risk management seriously.
  4. Contractual Requirements – Contracts are an everyday occurrence in most businesses. However, some require insurance protection. Without one, you may miss out on a good deal or an opportunity where your client takes their business to the competition.


  5. Employee Retention – Other than well-paying salaries, good employees look for more from their jobs. They want to be covered for accidents (or sickness) insurance makes the job even more attractive and long term. 

How does insurance help small businesses? 

Having insurance for your small business can help you in a number of ways. 

  1. Worker Injuries – If you are the owner of a retail store or a small construction business, you need insurance to cover expenses for employees or customers who may get injured, for example; slipping inside your premises or injuring themselves while welding metal.

  2. Property Damage – Suppose you are the proud owner of a car wash and an employee spills corrosive chemicals inside the car. Or, you own a laundry business and a faulty machine ruins the expensive suit of your customers. Insurance protects you when your client’s properties are damaged by mistake. 

  3. Faulty Product – Even after good supervision and quality control, if the customer gets injured while your product, insurance cover comes in handy for compensation.
  4. Incorrect Service or Advice – Suppose you are a plumber who fixed the plumbing system of a restaurant. However, an honest mistake leads to the restaurant being shut down for weeks. A good insurance policy protects you during such risks. 

  5. Theft and Employee Dishonesty – Theft is very common. Even with some of the best precautions, you may lose your money, belongings, or stock due to theft. If you have a problem with people shoplifting or employees who perform fraudulent activities at the workplace, you may be liable. Insurance can help you cover that loss. 


The things listed above are just a few of the major reasons why you need insurance for your small business and the risks of not having insurance for your business. Different businesses have different requirements and there are plenty of companies with numerous insurance policies.

To make the right decision, you should enlist the help of TBI Insurance Services. They provide expert advice after a careful risk assessment and give you tailored solutions that fit your budget.