Just like taxes are required to keep you in business, insurance is necessary for the same reason. There are many types of insurance that you may even be required to have depending on your type of business. Other types are voluntary but good to have.
Your best bet for business insurance is to talk to a legitimate insurance rep that works with several companies to help you understand what you need. Some banks can point you in the right direction, as can your local SCORE.org office or another small business center.
You may need Errors and Omissions Insurance, Liability Insurance (personal and product), Property Insurance, vehicle insurance, interruption insurance, and of course you may also need health insurance. Sometimes, depending on the type of business you have, you may be able to get health insurance less expensively per person (if you have at least 50 people working for you).
As you see there are a lot of things to consider. While insurance may seem expensive and even a "waste of money", the best thing you can hope for is to waste that money and nothing ever happens where you need it. But, having it can save your business from disaster, or save you if you cannot keep your business due to a natural disaster or another issue.
Keeping track of business finances is a lot easier if you use software and bookkeeping automation. Be sure to read the next article in this series to find out more.