The question is... can you afford the risk if you don t buy it? (i.e. self-insured). Let s say you try to fix a computer but something went wrong and you fried the computer. The owner sues you for damages. Can you afford to pay? Or let s say you hired someone who decided to break customer s password to access the customer s stash of celebrity naked photos (hey, it has happened). Celebrity sues the employee, AND your company, AND all the officers/partners in the company. Can you afford to pay the damages or even just the court costs? And ask yourself realisticly: can you define and risk and, secondly, can you AFFORD the risk?
If they re salaried employees, you need to get workers comp insurance. Business insurance is an important item- it s there to protect you against things that as a small business, you can t afford to pay out.
