Every new business needs a certain level of insurance protection. A business with at least one employee needs insurance to help protect the owner, the employee, the customers and the investors in the business. A business with a solid insurance plan is building a solid foundation for the business to grow upon. There are six primary forms of insurance for a basic business, whether it is new or established. They are;

1. Liability
2. General liability
3. Business interruption
4. Health
5. Disability
6. Workers compensation

Many small business owners are familiar with these insurance products and most employees are familiar with the last three. What may be a surprise to some is how many small business owners dont know of the third form of insurance on this list. A look at the devastation in the Gulf after the hurricanes should keep business interruption insurance fresh in the minds of all small business owners. The owners in Louisiana who had business interruption insurance have been able to keep their businesses while those without were simply not able to keep up with the fixed costs of their businesses while they tried to rebuild. For some companies a three or four day closure can cost millions of dollars in lost income, plant and equipment expenditures and salaries alone.

Both forms of liability insurance is needed more in America than in any other country in the world. Of all the lawsuits filed in the world, America accounts for over 80% of them. A business in the U.S. has a 97% percent chance of being sued during its lifetime. We live in a litigious society and must protect ourselves from the frivolous lawsuits just in case we lose. Slip and falls are a common lawsuit filed against a business with a potentially disastrous outcome if the decision goes against the business.

Health insurance is very important for the small business owner. I have had two heart attacks and a hyperactive thyroid problem myself during the last three years. Each of these had left me unable to work for extended periods of time. Without health insurance I would have been left penniless and homeless, in fact, I would be dead. Pay the premiums; they may just save more than your business.