Whether it’s a side project, side hustle or your full-time gig, running a small business can be both challenging and rewarding. You put a lot of work into your into building your business, what about protecting it? Every small business owner should consider small business insurance and its benefits, even if your business is run out of your home.

Without a specific business insurance policy in place, you may not have coverage for business-related claims. Could your business afford to recover from a loss without the help of an insurance policy? Read on for more information about small business insurance.

Here are 5 reasons your small business needs insurance

Your Personal Insurance Won’t Cut It

Even if you run your business from your home or your car, your existing personal insurance policies likely do not cover damages and losses related to your business activities. Instead, you’ll need either a business add-on or a separate business insurance policy to help protect you from risk when operating your business.

If you get in an accident driving for your business or, say, a ridesharing service, your personal auto insurance policy likely will not cover the damages. The same is true for damages caused to your home by your business equipment, for example.

If you’re not sure whether you need additional coverage, call and speak to your insurance agent to learn precisely what is covered under your existing personal insurance and areas where you may want to consider small business insurance.

It’s the Law

In some cases, your state may require you to carry business insurance for your small business.

Your Industry Requires It

For doctors, dentists, lawyers and other licensed professions, some states may require that you carry liability insurance in order to practice. Though most states do not require this coverage, it is smart for every business to consider its liability risk. Speak with a small business insurance agent to learn more about how your business could be at risk. From malpractice, errors and omissions to negligence, liability insurance could help safeguard your small business from costly lawsuits.

You Have Employees

If your small business is growing and you’ve brought on some employees, you’ll likely be required to carry insurance that protects both your business and your new hires. Most states require businesses to have workers compensation and unemployment insurance and some also mandate disability insurance.

Check with your insurance agent to see if your state requires these coverages for your employees. Even if it doesn’t, it’s likely your business could benefit from the coverage.

You’ve Taken Out a Small Business Loan

A small business loan can be the boost your business needs to grow and expand. Most lenders require you to have small business insurance after taking out a loan to help protect your business, both for your benefit and to ensure that your business can keep making payments. Similar to homeowners with a mortgage, if you have a loan, expect to be required to get insurance.

If your business could benefit from a small business loan, check out this helpful guide to small business loans by LendEDU.

Your Business Carries Inventory

If your business is dependent upon a physical product, imagine what would happen if your stock were to suffer a total loss due to damage. If your business would suffer, consider inventory insurance to help protect your business from financial ruin.

Your Area is Prone to Disaster

If you live in an area that is vulnerable to earthquakes, flooding, hurricanes, tornadoes or other  disasters, consider getting a small business policy designed help protect your business from the cost of damages due to disasters. This may require an endorsement or additional policy to a standard small business insurance policy, depending on the type of disaster. Talk with your insurance agent to see if your policy includes coverage or requires an additional policy.