We’d like to think that any of the jobs can be performed without risk to our readers or their customers, but that’s simply not true. Beside it, we also would like to think that there is no any lawsuit, liability, and insurance when we take a small job. We have to be planning to start a business by finding a capable and honest insurance agent and have a meeting to discuss a reasonable level of coverage for a small business. You may find that the job you have in mind, at least in its small, early stages, is protected by personal coverage you already have for your home or vehicle. Or you may find that the agent has serious concerns about your exposure to risk and recommends purchase of a new policy to protect you. It becomes a cost of doing business.
The insurance companies do rate applicants based on the type of business and their experience in paying claims. Rates also differ depending on geographic region, and within regions on whether the work takes place in an urban or a rural setting. In the broadest terms, we estimate that a basic business owner’s policy for an occupation that is not particularly hazardous would cost somewhere between $250 and $1,000 per year. You may also need to obtain coverage for inventory and for a vehicle used for commercial purposes. In the worst case, you may find that the insurance costs will be so high that it makes your business plan unrealistic. In that situation, you should look for ways to reduce the risk and the cost, or find a different small business to start.