Survey Warns New Business Owners on Insurance Coverage Gaps

Small-business owners are being urged to review their insurance as inflation raises the cost of repairs, materials, labor and replacement property, potentially leaving existing policies inadequate and increasing premiums. New business owners should not assume coverage is unnecessary simply because state law does not require it, since landlords, lenders and clients may demand proof of insurance before doing business. Guidance based on a survey of 501 small-business owners also warns against delaying coverage, underestimating financial risks and making rushed policy decisions after a loss or contract opportunity arises. Regularly reassessing coverage limits and understanding the requirements of business partners can help owners avoid gaps in protection and missed opportunities.