Small business insurance is basically a protective parachute that covers your new business from risks related to the particular retail industry youare going to serve. Many insurance companies specialize in providing what is needed or required to a small business, and that should be your firstcontact. They are easily located on the Internet, as well. Before you open your small business door, best you put insurance as your most exigent need. However, in back of every small business wannabe is that dreaded word: “cost.” On top of struggling to get doors open for customers, you must have insurance. So let’s answer a few quick questions about small business insurance.

In Simple Terms Please Expound On Why All This Insurance Is Required?
Protection, my friend, is what the term insurance is all about. You’re protecting your business assets and name against some pernicious event that probably won’t happen; you’re just playing the game of “risk management.” As a wise man once said: “Pay what you can afford now to eliminate a catastrophe, or pay later by losing everything you own.”

Do Small Businesses Need To Pay Workers’ Compensation Insurance?
Some states require small business companies to purchase “workers'” compensation for their employees; other states do not. It also depends on how many employees’ the small business has on the payroll. This type insurance covers employees’ medical expenses, and possibly some part of any wages lost if the injury is job related. As they say, “it’s better to have it if you need it, than not.”

What Does A Liability Insurance Policy Cover?
This is a great question because the word “liability” can be the “dagger-through-the-heart” for any operating business large or small. It can be the quickest way to not only lose your shirt, but your business, too. As far as your small business goes, liability insurance offers a blanket of protection for company assets in the event of a real or frivolous injury to a person or property. A basic commercial general liability policy will offer compensation for pain and suffering, financial losses, and punitive damages. However, if you have a mortgage lien on your property, the lender will want a fire policy liability “rider” attached to any policy to protect their investment. Also, you’re reminded to have a real estate attorney or other person with insurance knowledge read your policy to check for that nasty word, “exclusions.”

Why Do I Need A Product Liability Insurance Policy?
When you purchased your general liability policy, don’t assume that it covers product liability, as well. There is a policy difference between the stuff you sell, and somebody slipping on your wet floor and filing a claim. A product liability policy will protect you from an item you sold some person who ultimately may have been injured using it. Since this type of policy will not be in any general liability policy, make sure your coverage amounts are high enough to provide the coverage you need; one million being the minimum.

Author’s Bio: Jimmy Jones writes for Smallbusinessinsurance.com and is open  to writhing on a freelance basis on anything related to his industry.