Insurance is something we purchase but hope to never need to use. While it may be annoying to pay a premium each month it will be much more so (notice sarcasm here) if disaster strikes or you have to settle a lawsuit or repair severely damaged property with your own dollars. Doing business without proper insurance is akin to financial suicide.

Many things can go wrong with your small business. Whether it’s an accident you can’t control or an unhappy employee decides they want to sue you, having insurance helps protect you and your business from needing to pay the full expense.

Here are some thoughts on the three top insurance needs for small businesses.

Property Insurance: This is a protection for your place of business and the equipment inside of it. Whether you’re building a new property, renting a space, or you own your business property, you’ll want to ensure you have adequate property insurance.

Property insurance can cover you in a variety of ways. If there is a fire in your office building, property insurance can provide you with the cash you need to make repairs and replacements. A property insurance policy can also help if your company is robbed or equipment is stolen.

Your property insurance policy is there to help you cover any damage done to your property, equipment, or products. In the event of a natural disaster or other devastating event out of your control, property insurance will cover most damages at an exponential fraction of the cost you’d incur if you didn’t have that coverage.

Liability Insurance: As a successful business owner, someone will probably attempt to sue you. Whether it’s an employee unhappy that you let them go or someone injured because of a faulty product, there are many situations where you may find yourself in a legal battle.

Your liability insurance can help you cover fees associated with the lawsuit and any kind of compensation you must provide. This includes attorney fees and settlements.

Liability insurance can also protect you from personal injury cases. If a delivery person, client, or other individual injures themselves on your property, your liability insurance can provide them with compensation for medical bills and other expenses related to the injury.

Workers’ Compensation: As an employer, you’re required to provide a safe work environment for your employees. But even if you do your best to avoid injuries in the workplace, employees can still injure themselves.

Workers’ compensation coverage pays medical bills for an injured employee, and a percentage of the wages the employee loses while unable to work. Not having this coverage can be figuratively deadly, costing more, obviously, the more serious the injury of the injured employee.

Workers’ compensation is necessary even if there is little or no perceived danger of the job. Employees can become injured in a seemingly safe office space. While you may be able to have a lower amount of coverage, you will still want to have sufficient worker’s compensation insurance available.