May is National Small Business Month, a time dedicated to recognizing and celebrating the hard work and dedication of small business owners. As we honor these entrepreneurs who are the backbone of our economy, it’s also an opportune moment for business owners to reassess and strengthen their insurance strategies. Balancing celebration with preparation, here is a practical guide to ensure your insurance coverage both supports your current needs and prepares you for future growth.

Foundational Coverage for Startups

As a startup, having foundational insurance coverage is crucial. Here are the essential types:

• Business Interruption Insurance: This policy compensates for lost income if your operations are shut down due to a covered event. It’s essential for maintaining cash flow during unexpected downtimes.
• Commercial Property Insurance: Protect your physical assets from hazards such as fire, theft, or natural disasters. Note, however, that flood insurance often needs to be purchased separately.
• General Liability Insurance: Shields your business from claims related to bodily injury or property damage that may arise during operations.
• Workers’ Compensation Insurance: Required in most states, this insurance covers medical expenses and lost wages for workplace injuries, safeguarding both your team and your business.

Additional Coverage as Your Business Grows

As your business evolves, consider expanding your insurance to include these additional coverages:

• Cyber Liability Insurance: In our digital age, protecting your business from data breaches and cyberattacks is critical. Cyber Liability Insurance helps mitigate the financial impact of these security threats.
• Directors and Officers (D&O) Insurance: This coverage protects your company’s leadership from personal liability related to management decisions, ensuring they can operate with peace of mind.
• Professional Liability Insurance: Also known as Errors and Omissions Insurance, this protects against claims of negligence or mistakes in the services you provide.
• Employment Practices Liability Insurance (EPLI): This insurance covers claims of wrongful termination, harassment, or discrimination, protecting your business from employment-related lawsuits.

This National Small Business Month, take pride in your progress and ensure that what you've built is well-protected. Revisiting your insurance policies not only brings peace of mind but also positions your business for future growth. I encourage you to reach out to a licensed insurance agent to review or update your policy portfolio. Here’s to your continued success and security!