Think Your Business Is Too Small for Insurance? Think Again!

Posted by Hippo on 24 April 2025

Running a business isn’t just about grinding, hustling, and making deals. It’s about protecting what you’ve built. Whether you’re a one-person operation, a growing startup, or the head of a small-but-mighty empire, your business is an asset worth safeguarding.

But too many business owners believe they’re too “small” to need insurance. Spoiler alert: They’re wrong.

Here’s why having business insurance isn’t just a smart move—it’s essential.

The Myths That Could Cost You

🚫 "I work from home, so my business is covered."
Ah, if only. Your home insurance won’t cover your laptop, business files, client equipment, or that “oops” moment when your cat knocks coffee onto your external hard drive.

🚫 "I’m just a freelancer—why would I need insurance?"
Because mistakes happen. Clients expect professionalism, and if something goes wrong—like a missed deadline that costs them money—you could be legally liable.

🚫 "Business insurance is for big corporations."
Nope. Whether you run a coffee shop, a marketing consultancy, an online store, or a construction business, insurance is still essential to protect your business assets and your business revenue.

🚫 "I don’t employ anyone, so I don’t need cover."
Even if you’re a one-person show, your business could still be hit by lawsuits, property damage, or an unexpected disaster. And guess who’s footing the bill?

The Types of Business Insurance That Matter

💼 Public Liability Insurance – The “Oops, My Bad” Cover

If a customer slips in your store, you accidentally damage a client’s property, or someone gets injured because of your business, this covers the legal and compensation costs.

🔍 Professional Indemnity Insurance – The “I Swear I Know What I’m Doing” Cover

For consultants, advisors, and service providers. If a client claims your advice led to financial loss, this covers legal fees and settlements.

🚀 Business Interruption Insurance – The “Keep the Lights On” Cover

If an unexpected disaster (like a flood, fire, or power outage) forces you to shut down, this insurance helps cover lost income, rent, and wages so you can recover without financial ruin.

Why Business Insurance Is a No-Brainer

🔹 Protection Against the Unexpected: Fires, floods, lawsuits —your business isn’t immune.

🔹 Financial Stability: One claim or disaster can wipe out years of hard work if you’re not covered.

Own or run a guest house or bed and breakfast? Learn more about how B&B business insurance could cover you.

How Much Could NOT Having Insurance Cost You?

Let’s do the math. Say you run your own consultancy. If a client sues you for giving advice that cost them money, you could be looking at legal fees, damages, and lost income that could easily exceed your income.

Or maybe you run a small bakery. A kitchen fire forces you to shut down for two months while repairs are made. Without business interruption insurance, you’re losing revenue while still liable to pay rent, salaries, and fixed costs.

If you run a small business, like a building and construction company or a courier service, or are an e-hailing driver, view our detailed business insurance guide for various industries to get an idea of the type of insurance your specific business may need.Can you afford that kind of financial hit?