The insurance needs of a small business change as it develops and expands. The strategy of many Pennsylvania entrepreneurs who start up on a shoestring budget is to purchase the minimum Pennsylvania business insurance coverage to meet legal requirements coverage and build up protection as the business grows.

• At the start of a small business, insurance needs may be minimal. A business that has no employees or business vehicle will often have no mandatory insurance requirements, however, the business owner should at least consider purchasing liability insurance to protect assets in the event that the business is involved in litigation.
• A growing business that hires workers or uses a business vehicle will require workers’ compensation insurance and business auto insurance.
• As time goes on a business owner will have invested significant time in the business even if capital investment has been minimal. Many entrepreneurs at this stage of the business life cycle choose to purchase a business owners’ policy. Depending on the type of activities the business undertakes the business owner may wish to purchase insurance for errors and omissions or professional liability.

Unplanned costs such as the need to replace a computer or an uninsured accident in the business premises in which a customer is injured can stunt the growth of a business by using up capital that has been set aside for business development. To reduce the risk of losing the owner’s investment in the business, many entrepreneurs carry Pennsylvania business insurance coverage to reflect the level of funds and time that have been invested.