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Writer's pictureDiana McCarthy

The Importance of Small Business Insurance

Updated: Jul 27, 2023



Office Loft Business Meeting
Office Loft Business Meeting

Insurance is an important aspect of any business, especially small businesses. The following are some of the reasons why you need insurance for your small business.


Do I need Insurance for my Small Business?

There are two answers to this question, depending on how you decide to frame the question.

a) Is a Business Insurance a Requirement to run Small Businesses in Brooklyn?

No, having business insurance for small businesses is not a legal requirement. However, it still depends on the industry in which your small business will operate. If you are not sure whether you are required to have business insurance in your industry, you can contact Joseph Feldman from Prime Insurance. (Contact details provided at the end of this article).


b) Is Business Insurance Necessary for small businesses?

Definitely Yes! Business insurance is necessary for small businesses. You need to your business in the event of a catastrophic event, in the case of lawsuits, or against the actions of your Employees.


Why Do I need an Insurance for my Small Business?

Insurance helps to cover against losses due to the actions of your employees, such as theft, pilferage. It also helps to cover losses due to unforeseen events such as fire, floods, or thuggery.

Other losses that business insurance can protect you against are lawsuits from customers or employees, injury on workers while in their line of work, and injury on customers when they are at your business premises.



Image of Business Documents Related to Business Insurance


Most people view insurance as a reap-off, especially where they believe that the risks they intend to insure themselves against might never happen.

However, insurance costs for small businesses cost between $40 and $150 per month depending on the company, and the insurance policy which you intend to have.


The $40 - $150 per month is a small cost compared to the cost that you will have to undergo in case of any eventuality. Some catastrophes can leave you devastated, and the only and the easiest way to come back to your feet is being prepared in advance by having an insurance cover.


What are some of the types of insurance that I can take for my Small Business?


You can take either


(i). Business Owners Policy
(ii). Business Property also called the Commercial Property
(iii). Business Liability also called Commercial Liability
(iv). Business Income Insurance
(v). Worker’s Compensation Insurance
(vi). Unemployment Insurance
(vii). Disability Insurance

The following is a brief description of each of these insurance policies;


(i). Business Owners Policy – this is business insurance that combines two insurance policies into one policy. It combines business income insurance and business liability.


(ii). Business Property/Commercial Property – this insurance policy covers the business assets and the physical location of the business.


(iii). Business liability/Commercial Liability – this insurance cover helps to protect against lawsuits or liability claims on the business. This is a necessary insurance cover, especially for restaurants.


(iv). Business Income insurance – this is a business insurance policy that one takes to cover losses that the business incurs while it can’t operate. A good example is when your business is closed as it undergoes repair and maintenance.


(v). Worker’s Compensation Insurance – this is an insurance cover that one takes to support employees when they are incapacitated to perform their duties such as injury or illness when they are at work.


(vi). Unemployment Insurance – this is an insurance cover meant to cover employees if they lose their jobs. However, this is in case they lose their jobs without a fault of their own.


(vii). Disability Insurance – this is an insurance cover that covers workers against loss of income due to temporally incapacitation from non-work-related illness, injury, or pregnancy.

If you want to know, more about insurance covers for your businesses, or want to take an insurance cover for your business contact


Joseph Feldman

Prime Insurance

Tel: 732-886-5751, Ext 148.


Remember to mention Creative Lofts I when you contact Joseph Feldman, and you’ll be directed to the least expensive policies. The insurance policies will be between $40 and $75 per month.


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