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What Insurance is Best for a Small Business?
by Brett Farmiloe
April 29, 2022
Financial advisor writing notes while having consultations with clients.

What insurance is best for a small business?

The answer depends on the characteristics that make up a business, including types of employees, business size, and more. 

To help small businesses navigate through complicated insurance policies, we asked small business owners about the insurance policies they value within their companies. 

Here are ten types of insurance that small businesses should consider:

  • Health Insurance: Medical, Dental, Vision
  • Life Insurance
  • A Clear and Transparent Policy
  • Warranties on Equipment + Appliances
  • Check The Reviews
  • Full Protection
  • Business Disruption or Interruption Insurance
  • Cybersecurity Insurance
  • Errors and Omissions
  • A Small Insurance Company


Health Insurance: Medical, Dental, Vision

Health insurance - with medical, dental, and vision coverages for employees - should be at the top of the list for a small business. No matter how small a company, employees want to have coverages that take care of unexpected or unplanned life events. By offering health insurance, small businesses can take care of employees and attract quality talent. To get started on offering health insurance, I’d recommend a small business owner get in touch with an employee benefits broker to help navigate the process. 
-Brett Farmiloe, Markitors

Life Insurance 

Small business owners should consider life insurance on multiple fronts. First off, life insurance may be a good idea for small business owners who want to see their success continue with business continuation coverage. For small businesses looking to attract top talent, group life insurance is increasingly becoming a benefit that matters to employees. Whether the perspective is from the owner or employee, life insurance is a must-have policy for a small business. 
-Brian Greenberg, True Blue Life Insurance

A Clear and Transparent Policy

As a personal injury lawyer, we are well versed in the importance of having insurance and being knowledgeable about what you are covered for and how you can utilize your insurance to help you when needed. As the son of small business owners, I understand that business owners are always concerned with cost. For many businesses, a commercial umbrella insurance policy can be added for less than $1,000 per year. With whatever insurance policy you decide to buy, make sure you have a complete understanding of what your policy entails. There shouldn't be any question marks when it comes to your policy and how to file claims. Make sure the insurance company has helped you evaluate the risks of your businesses, and has clearly outlined solutions for you. The more you know, the better your insurance company can provide for your small business. 
-Hunter Garnett, Warren & Simpson

Warranties on Equipment + Appliances

Our appliance repair company has seen its fair share of appliances and equipment that have stopped working as intended far before their life expectancy date. Small businesses can protect themselves and their assets by knowing about their warranties, and what protections they have if something goes wrong. 
-Alex Belladorsi, Appliance Technician

Check the Company Reviews

Whether you are searching for life insurance, health insurance, or even pet insurance, make sure to check reviews before proceeding with a company. There are many ways to review an insurance company before proceeding with a policy. Review sites, Google reviews, Glassdoor, BBB reviews, and more are all online destinations where you can get a more transparent look at the inner workings of an insurance company. 
-Chris Huntley, Life Insurance Shopping Reviews

Full Protection

The insurance company doesn’t matter as much as the comprehensiveness of your insurance plan. As the owner of a small business, there is a lot of weight on your shoulders. You want to make sure that your employees and company are fully protected so you don’t have any worry. 
-Chris Dunkin, Portable Air 

Business Disruption or Interruption Insurance

This type of insurance is particularly important for small businesses especially in uncertain times like ours. Businesses have been adversely affected by the lockdown and the social distancing guidelines. Business operations have either slowed down or ground to a halt. With a business interruption insurance policy, entrepreneurs can rest assured that their businesses will be shielded from force majeure of every kind. With such a policy, small businesses can manufacture products, provide services, and so on. If a lawsuit is brought against your small business because you failed to complete a project, this insurance will defend your enterprise, thereby saving you time and money.
-Chioma Iwunze-Ibiam, Time Doctor

Cybersecurity Insurance

Regardless of size, every business needs to have some type of cybersecurity insurance. Don’t think 'it can't happen to me'. Cyber attacks, particularly email phishing scams, happen every day to businesses of all sizes. It’s important to remember no business is too small or too big to become a victim of business email compromise that leads to a data breach and ransomware attack. If you don’t have cyber insurance, your business might be doomed.
-Lauren Patrick, Curricula

Errors and Omissions

The best kind of insurance is a general liability of $2 million. Most big brands you work with will expect this. You also should have E&O — Errors and Omissions— to cover anything else that may happen. We have a staff of about seven and this costs us about $8,000 a year.
-Trevor Rappleye,

A Small Insurance Company 

The best insurance for small businesses is with an insurance company that is a small business themselves! Large corporate insurance companies are everywhere. They outsource, sell generic policies, and often don’t provide all the information the clients need to know. This can lead small business owners to feel uninformed and possibly incorrectly insured. Going through a small, independent insurance company ensures that you get a personalized policy and agents that will cater to you and your unique business needs. 
-Vicky Franko, Insura 

About the author
Brett Farmiloe
Brett Farmiloe is the Founder & CEO of Terkel, a Q&A site that converts insights from small business owners into high-quality articles for brands. Brett Farmiloe Founder & CEO,
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712 H St NE PMB 98848
Washington, DC 20002

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