Hey ,

Most entrepreneurs assume that “general business insurance” covers everything, or worse… they think their LLC protects them so they don’t need insurance at all. Then when something goes wrong, they discover their policy doesn’t cover their actual business activities.

That life coach who bought “business insurance” but doesn’t have professional liability coverage? One client complaint could bankrupt them. The contractor with general liability but no workers comp? One employee injury and they’re personally liable for everything.

It is my opinion that the wrong insurance is often worse than no insurance because it gives you false confidence.

⚠️ What’s Non-Compliant

Having inadequate insurance coverage or operating without legally required insurance violates state regulations and leaves you personally liable despite your business entity.

Common violations that I see:
*Service providers without professional liability/ errors & omissions insurance.

*Businesses with employees operating without workers’ compensation (required in most states).

*Home-based businesses think that homeowner’s insurance covers business activities.

*Online businesses without cyber liability coverage handling customer data.

*Contractors without proper contractor-specific insurance requirements.

✅ Compliance Tip

🛠️ Action Steps: Fix It Now

• ✅List what your business actually does (coaching, consulting, selling products).

• ✅Check your state’s required insurance for your business type.

• ✅Review your current policy… does it specifically cover your activities?

• ✅Call your insurance agent and describe your exact business activities.

• ✅ Get quotes for missing coverage.

• ✅If you have employees, verify you have workers comp coverage.

***Be sure to update your insurance every time that you add new services or business activities.

📌 Disclaimer

The information provided in this newsletter is for general informational purposes only and does not constitute legal, tax, or financial advice. While every effort is made to ensure accuracy, laws and regulations change, and individual circumstances vary. For advice specific to your business, please consult a qualified professional.

When in doubt, consult a licensed attorney to review your compliance needs.
If you don’t have one, I’m happy to help you get connected, just schedule a quick call.

Thank you for reading.

Keep showing up, protect the business that you are building and share what you learned with a friend !

Until next time💛