Quitting your job to start your own business is inherently risky. Despite the risks, Americans have been quitting their jobs in record numbers, and many are leaving to pursue an even riskier venture-opening a small business.

It takes courage to become an entrepreneur and the risks involved can be part of what makes it exciting. But not all risks are created equal, and those who end up making it know the difference between a calculated risk versus one they can and should avoid. So what potential hazards and obstacles should new business owners in Maryland and Pennsylvania be thinking about ahead of time? 

Start by talking with a trusted local insurance agency like Keller-Brown Insurance to determine what small business insurance policy is right for you.

Small business insurance is a crucial part of risk management, but 44% of entrepreneurs fail to protect their investments with insurance. In this guide to small business insurance, we'll walk you through how to assess your coverage needs and what insurance policies new business owners should consider. 

Identify your risks

The first step to determining your insurance needs is identifying what risks your business will encounter. Because every business is unique, there is no one-size-fits-all approach to insuring a small business. For instance, many small businesses will hire a number of employees, but some entrepreneurs will act as sole proprietors. Workers' compensation is a crucial part of insuring a brick and mortar business with employees, but it's not necessarily needed for sole proprietorships or home-based business. 

Here are a few examples of common business risks:

• Illness or injury to customers or employees

• Business interruption  (i.e. loss of income if your business can't operate because of a loss)

• Theft 

• Property damage

• Data breach

• Auto accidents

Unsure whether these risks apply to your business? Read a detailed explanation of these types of business risks.

Connect with an attorney

When starting a business, it's wise to connect with a small business attorney who not only has knowledge of what kinds of insurance you're legally required to obtain, but also who has experience working with other business owners like you. An attorney can provide a thorough review of the risks your business is likely to face and make informed suggestions about how to mitigate them. 

Get advice from a trusted insurance professional

While an attorney can help you better understand your risk, they can't find the best insurance plan for your small business. Contact a trusted professional like Keller-Brown Insurance to get a free quote, and we can help you build a small business insurance plan that reduces your financial risks and fits with your budget. 

Seven small business insurance policies every business owner should consider:

Property Insurance

A small business owner's property can encompass many things: equipment, buildings, products, materials, ingredients, basically anything that gets used in the course of providing goods or services to customers. So it's important to carefully consider how you will recover if your inventory gets damaged, or an expensive piece of equipment breaks down. In addition, you should think about when and where your property gets used, so you can provide protection for anything essential to your business that could be damaged off site.

Liability Insurance

New business owners are bound to make plenty of mistakes—that's part of the experience! But what happens if one of those mistakes harms a customer or employee? Make sure you have the right kind of liability coverage so that a consequential error doesn't end up costing you your dream.

Interruption Insurance

The essential functions of your business could be interrupted for a huge variety of reasons, from an unexpected weather event or natural disaster; to damaged inventory or a cyberattack. You might have coverage to help you deal with the fallout from these obstacles, but what do you do about the income you're losing while you work to get your business up and running again? And how do you take care of your employees and customers in the meantime? Business interruption insurance can cover this loss of income so you can stay afloat long enough to re-open.

Cybersecurity Insurance

If your business relies on electronic communication, records or tools, you had better have a plan and a policy in place to deal with potential cybersecurity incidents. This type of insurance might cover fines related to a data breach, costs associated with repairing damage to your reputation, and costs for recovery.

Workers' Compensation Insurance

If you hire employees, then workers' compensation insurance is a crucial part of a business insurance plan. Should a team member get injured or be exposed to illness as a result of their work, both your business and the employee will be protected. Workers' compensation insurance ensures affected employees receive adequate compensation and reduces the risk of lawsuits. 

Miscellaneous Insurance

A good insurance agent will help you to understand the risks common to small business owners. So perhaps the most important risks to imagine are the ones totally unique to your new venture. Maybe your business is in an earthquake or flood zone; or you rely heavily on third parties for labor or materials; or your product has to be shipped long distances. Make sure you think about all potential setbacks and what you might do to mitigate their effects and, ultimately, bounce back.

Carefully consider which small business insurance policy will fit your business best. For any insurance questions, call or contact Keller-Brown Insurance Services today.

Insurance for your employees

An attractive benefits package is an effective way to recruit talented employees, and you may be legally required to offer certain benefits like health insurance for full-time employees. Amidst the Great Resignation, robust employee benefits are an especially important factor in your recruitment strategy. 

Although laws vary by state, businesses are typically required to provide full time employees with health insurance and workers' compensation as well as contributions to programs like social security. Optional benefits like dental and vision insurance and life insurance are also part of a comprehensive plan, and offering such benefits can improve your ability to attract and retain strong employees. 

If you're starting your own business, make sure you're protected with insurance. Our team can offer trusted advice about what business insurance policies work best for your budget and long-term business goals. Get in touch to learn what insurance coverage we recommend, get a free quote for those options.