Ask Dr. Deborah | Do I really need liability insurance?

Dear Dr. Deborah,

I am in the process of starting my own jewelry making business, and one step that I’m unsure about is insurance. Others have told me that liability insurance is an absolute must, but I’m not sure if I really need it. I’ll be running my business out of my home initially and mostly traveling to craft shows and potential vendors. Do I really need liability insurance?

-Janice, NH

Hi Janice,

First off, congratulation on starting your own business. I hope it’s a fun and exciting experience for you! To answer your question, buying business insurance is always a good idea. Even in businesses such as yours, there is risk involved. However, since your business has no physical location and doesn’t sell a product or service that could potentially injure someone, your risk is fairly low. In your case, liability insurance may not be a necessity but rather a precautionary measure.

Even though it may not be a necessity, I would still recommend that you investigate some insurance options. There are many unexpected things that can happen when running a business. Anything from property damage to a cyber-attack where your customers’ information was stolen can cause major problems for a business. Since your business is relatively low-risk, I would look into a Business Owner’s Policy. This type of insurance plan tends to be more affordable and offers general liability insurance and property insurance, as well as some business interruption insurance should you have to temporarily close down for unexpected reasons.

When it comes to planning for the unexpected, it’s always better to be safe than sorry. Consider carefully before you decide to forego something like business liability insurance and compare the costs with the potential risks. It’s important to protecting not only your business but also your own assets. If you do decide to not get liability insurance, be confident in your decision.

Best of luck with your business Janice!

Sincerely,
Dr. Deborah

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