Starting any business requires considerable investments of time, money, and resources, so you likely want it to remain profitable for years to come. To ensure your company can weather any storm, business insurance is essential. Here are a few reasons every entrepreneur needs this type of policy.

Why Every Business Needs Insurance

1. Legal Requirements

Many states require businesses in specific industries to protect their clients by carrying insurance. For instance, plumbers, electricians, and other construction contractors will need to purchase insurance before getting their licenses. If your business owns service trucks or delivery vehicles, you’ll also need a commercial auto insurance policy.

Some cities even require photographers to purchase liability insurance if they’re planning to shoot on public property. Failing to follow these guidelines can result in hefty fines and leave you exposed to lawsuits.

2. Business Property

business insurance

Property insurance protects your buildings, vehicles, inventory, and equipment from various perils that could otherwise put you out of business. For example, if your assets are damaged by fire, extreme weather, or theft, your business insurance will cover the cost so you can keep going.

The standard home insurance policy specifically excludes business property, so you'll also need a plan if you work from home. Adding a separate commercial policy will soften the financial blow if something happens to your workspace.

3. Potential Lawsuits

Any business could be exposed to lawsuits that could force it to close. For instance, a customer could be injured on your property, or you might inadvertently damage a client's home on a job site.

The liability coverage included in your business insurance will cover the cost of valid claims, potentially saving the company you've worked hard to build. If you're named in a frivolous lawsuit, your policy will also cover your attorney's fees.


Choosing a business insurance policy can be challenging, but the friendly agents at America’s Favorite Insurance & Tax will ensure you’re protected. As an independent agency, they write policies from many industry-leading carriers, allowing them to tailor policies to your budget and unique needs. Visit their website for more information on their business coverage services, or call (972) 662-8221 to request a free quote from their office in Desoto, TX, or (954) 951-1960 for Pompano Beach, FL.