Business Insurance Explained – Everything You Need to Know
Business insurance is one of those things many entrepreneurs overlook—until they need it. In this episode of The Common Cents Show, I sat down with business insurance expert Kate Krebsbach to break it all down. We covered the types of coverage every business owner should consider, common mistakes, and how to protect yourself from financial disaster.
Why Business Insurance Is More Than Just a Policy
A lot of business owners think they can handle insurance on their own. After all, with Google and YouTube, what’s the big deal? The reality is that insurance is about managing risk, not just checking a box. Just like you hire an accountant to handle your taxes, having an insurance expert ensures you're not leaving gaps that could cost you everything.
Kate emphasized that insurance isn’t just about compliance—it’s about protecting the business you’ve worked so hard to build.
The Biggest Insurance Mistakes Business Owners Make
1️⃣ Not Reviewing Coverage Annually – Costs change, new risks arise, and policies need updates. If you set and forget your insurance, you might be underinsured when disaster strikes.
2️⃣ Thinking General Liability Covers Everything – A simple slip-and-fall policy won’t protect you from cyberattacks, product defects, or business interruptions.
3️⃣ Underestimating Business Interruption Insurance – COVID-19 exposed how vulnerable businesses can be when operations suddenly halt. Many landlords are now requiring this coverage in leases.
4️⃣ Misclassifying Employees – Hiring 1099 contractors instead of W-2 employees to save on costs? The IRS or insurance companies may still consider them employees, leaving you on the hook for claims.
How to Choose the Right Business Insurance
There’s no one-size-fits-all approach. Different industries have different risks. Kate recommends working with an agent who specializes in your field. For example:
✅ Restaurants need spoilage coverage (What happens if a power outage ruins all your inventory?)
✅ Trucking companies need cargo insurance (What if your shipment is lost or damaged?)
✅ Consultants need errors & omissions insurance (What if a client sues over bad advice?)
Final Thoughts: Insurance Is a Strategy, Not an Expense
The key takeaway? Insurance is not just a cost—it’s an investment in protecting your business. The right coverage ensures you can survive unexpected challenges without draining your finances.
If you’re a business owner, take the time to review your policy today. And if you’re not sure where to start, reach out to an insurance expert who understands your industry.
📌 Want more insights? Connect with Kate Krebsbach on LinkedIn at Kate Scully Krebsbach and learn more about business insurance from The Common Cents Show.
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