As a business owner, you have quite a bit invested in your business, whether it be financial resources, or good old fashioned blood, sweat and tears (usually all of the above). No matter how good you are at what you do, there will be risk involved. There are many things completely out of your control that may directly affect your business. These can be naturally occurring disasters, such as fire, flood, or high winds. These can take the form of a lawsuit, or death of a key employee or business partner. If your business is a corporation or an LLC, your personal assets are protected from business liabilities, but neither business structure protects your business from losses.
State laws determine what types of insurance you are required to have, but as with car insurance, purchasing the minimum required may not be enough to adequately protect you. Most states do require disability insurance, workers' compensation insurance, and unemployment insurance for businesses that have employees. Your state may also require additional coverages depending on what activities your business is involved in. For example, if you drive your personal car for business use, or put a sign on it, you may be required to obtain a commercial insurance policy. Financial lenders may also have requirements as to the types of business insurance you must carry.
We recommend speaking to a professional, like those of us here at Platt Insurance & Financial, to determine what commercial insurance policies you need to have in order to adequately protect yourself from the unknown.