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Is Your Small Business Adequately Insured? Many Owners Don't Know Every small business needs an insurance to protect itself against unprecedented events. However, many small business owners often neglect the importance of having an insurance.

By Hamid Ganji

Opinions expressed by Entrepreneur contributors are their own.

Operating a small business has always involved financial risk, but in 2023, many observers believe the challenges are greater today than ever. Company owners and decision-makers feel this way for many reasons — from economic uncertainty to more frequent severe weather to increasing cybercrime.

Fortunately, companies can protect themselves by having adequate business insurance. With the right policies and limits in place, an incident that would have resulted in a sizable financial burden may be covered, enabling the organization to move past it without having to pay for a loss or the high costs of legal defense and court-awarded damages.

On the other hand, a company that doesn't have adequate insurance coverage can suffer in multiple ways following an incident that isn't fully covered, including:

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