Operating without it means you'll face fines and penalties. You'll also have to pay out of pocket for your employee's medical care if they suffer a work-related injury or illness. However, even if your state doesn't require small business insurance coverage, it's a good idea to have it. However, insurance can make your business work or fail.
Without the right insurance, a robbery or fire can cause devastating losses. A personal injury lawsuit can make you struggle to pay legal fees, and yet many small business owners don't take the time to assess their needs and get the right coverage. One of the main tax benefits of choosing a transfer business structure is the avoidance of double taxation. When your policies are pending renewal, consult your competitors and make sure you continue to get the best deal for your business.
If you answered “yes” to any of these questions, business insurance will help you minimize your risks. There are several types of commercial insurance, each designed to protect against a particular set of risks. When running a business is already expensive, one of the last things you might want to do is increase insurance costs. However, there are several reasons why it's useful to have business insurance, as well as reasons why not having insurance can harm you.
From bank accounts and point-of-sale systems to insurance and business licenses, LegalZoom partners can help you turn your big idea into a big business. Most of the country has laws that state that companies must have certain types of insurance or a certain amount of coverage. Forming an LLC usually doesn't require a business license, but the requirements vary depending on the type of company the company the company is in. If you have at least one employee, you must have at least general liability insurance for your company.
If an LLC, or limited liability company, seems like the ideal vehicle for your side business, you may be wondering if you can form an LLC while employed in another job. Often, you'll save money by taking out a business owner's policy that combines several types of business insurance into a single policy. If something were to happen to your business without insurance, such as a fire or a flood, you will have no means to recover and will be left with the financial consequences of repairs and the interruption of business operations. Insurance can help protect you by covering any losses, as well as any loss of income during the period when your business will be on hiatus.
By evaluating your risks, choosing the right coverage, and staying on top of the claims process, you'll help ensure that your company has the protection it needs when it needs it.
