Nobody launches a small business to become an insurance expert. But the reality is that the prospects of even the most promising business venture can be derailed by failing to protect against unseen risks with the right small business insurance portfolio.

Some new small business owners believe they are fully protected by establishing their firm as a limited liability company (LLC) or corporation. While that is necessary for safeguarding personal property and wealth from business-related lawsuits, more is needed to protect a small business from a long list of natural and outside risks.

Here’s how the U.S. Small Business Administration (SBA) explains the rationale for adding business insurance as a necessary step in forming any new company. “Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits could run you out of business if you’re not protected with the right insurance,” says the SBA in its 10 Steps to Start Your Business guide. “As a general rule, you should insure against things you wouldn’t be able to pay for on your own.”

Despite the importance of adequate insurance coverage, 90% of small business owners aren’t confident they are appropriately covered. That feeling of unease is understandable in 2024 as more small businesses question whether they are protected against rising threats, including cyberattacks and extreme weather.