Welcome back to the tariffs-and-what-they-mean-for-you segment of your weekly Strategy Note. On today’s agenda: Steel and aluminum.
The U.S. just raised tariffs on these to 50 percent. If your business relies heavily on manufacturing and construction materials, you’re going to feel this one.
The U.S. Treasury Secretary is in London this week to officially continue trade negotiations with China. I’ll be watching to see what comes of that.
But even if your business isn’t immediately or directly affected by these changes, what I want you to take away is this: I’m here to help you navigate the impact of big changes on your business.
We can discuss how those big changes affect your bottom line and help you stay proactive in your approach. If you want to sit down and chat about that now, grab a time on my calendar: calendly.com/l-karam/prospect-schedule
And on a related note…
These tariffs are just one example of the risk you’re exposed to when running a business. Whether it’s natural disasters or economic shifts, you NEED to know if your insurance actually has you covered.
I’ve seen too many business owners find out the hard way that their policy doesn’t stretch as far as they thought. Like the restaurant that had to close after a lawsuit their insurance wouldn’t touch… or the shop owner left footing the bill for weather damage that wasn’t included. These aren’t hypotheticals – they’re real scenarios, and they happen more than you’d think. (Here are a few more examples, if you’re still skeptical.)
If you’ve never really given thought to your policy, you’re certainly not alone. 30 percent of small business owners don’t carry ANY insurance. And the biggest reason why? Not knowing what kind they need.
Which is what I aim to clarify for you today. If it’s been a while since you looked under the hood of your insurance setup (and you wouldn’t know what to look for even if you did), then read on…
Types of Small Business Insurance Your Business Needs
“You don’t have to see the whole staircase, just take the first step.” – Martin Luther King Jr.
Your insurance policy probably felt like a compliance checkbox you ticked off WAY back when you got your EIN and your first client. You bought a basic policy and moved on to the real work.
But it’s likely time you re-checked that checkbox. I’ve seen more than a few of my clients blindsided by uncovered risks… and I’m here to give you the nudge: take a fresh look. This feels especially necessary as you prepare for the possibility of a natural disaster or an economic shift hitting your business.
Imagine this: a pipe bursts in your office overnight and floods your equipment. Or a hacker gets into your cloud storage and steals sensitive client data. Or worse, an employee slips on ice in the parking lot and sues you. Now you’re staring down medical bills, court costs, and a hit to your business’s reputation.
The right insurance policy cushions you from that kind of blow. So, what are the different types of small business insurance? (I’ve got a short list I’ve been wanting to share with you…)
Types of small business insurance you should know about
1. General Liability Insurance: This is your basic protection against bodily injury, property damage, and slander/libel claims. It’s foundational. You can’t (and shouldn’t) operate without it.
2. Commercial Property Insurance: Essential if you own or lease a space, or have any physical inventory or equipment worth protecting. Fires, floods, theft… it covers the “stuff” your business runs on.
3. Business Interruption Insurance: If you can’t operate due to a covered event, this helps cover rent, payroll, and other fixed costs while you recover. Think of it as a financial respirator.
4. Professional Liability (E&O) Insurance: Crucial if you’re in a service-based field where advice, consultations, or strategic recommendations are part of your offer. If a client claims your guidance led to financial loss, this policy covers legal fees and damages.
5. Workers’ Comp: Non-negotiable in most states. If an employee gets hurt on the job, this covers their medical care and wages. Not having it when required can result in fines, audits, and lawsuits.
6. Employment Practices Liability Insurance (EPLI): Having coverage against wrongful termination, harassment, and discrimination claims isn’t just smart. It’s essential.
7. Cyber Liability Insurance: If you store client data (especially financial or personal info), you’re a target. Ransomware and data breaches don’t care if you’re a “small business.” They care if you’re vulnerable.
8. D&O Insurance: Directors and officers liability, if you’ve got partners or a board. Protects you (personally) from being sued for business decisions you make on behalf of the company.
Now, this list isn’t exhaustive — far from it. What covers one business might leave another completely exposed. That’s why it’s worth sitting down with a trusted insurance advisor to evaluate your current coverage and make sure it still aligns with your business’s current needs.
(And then with your favorite accountant to look at deducting the premiums from said policies.)
How do you know if you’ve outgrown your policy?
As you’re well aware, your business isn’t static. You’re evolving. That means your exposure to risk is evolving, too. And your policy probably needs updating if your answer is “yes” to any of these:
- Have you added new services or expanded your offerings into new industries?
- Have you started selling physical products you weren’t selling before?
- Have you opened another location or moved into a larger space?
- Did you hire employees or 1099 contractors in the last year?
- Have you purchased expensive equipment, machinery, or vehicles for business use (that weren’t covered under your original policy)?
- Has your annual revenue increased or decreased by more than 15–20 percent since your last policy review?
Key Takeaway:
Staying on top of your business insurance isn’t just about compliance – it’s about protecting everything you’ve worked so hard to build. As your business grows, your coverage needs to grow with it to guard against financial loss, legal exposure, and operational disruption. Take the time to review your policy now – before an unexpected event forces your hand.
Now let me be clear: I’m not an insurance agent. But I do get a front-row seat to the disasters that happen when insurance gets neglected. I’m happy to sit down with you to talk about your insurance situation – so can have confidence in the insurance plan you create for your business:
calendly.com/l-karam/prospect-schedule
With your business’s best interests in mind,
Lynn Karam