Tang Trang, Vice President of TDI GI Small Business Insurance, answers our questions about all things small business and insurance: what factors small businesses should think about when buying insurance, the biggest mistakes he sees, what type of insurance small businesses need, and more.
What is the biggest misconception you see about small business insurance?
One of the biggest misconceptions is that small business insurance only matters in a major disaster. In reality, small business insurance is there to help with a wide range of disruptions that can seriously affect day-to-day operations, from property damage or theft to liability issues and unexpected closures. Another common misconception is that there is one type of business insurance that is "one size fits all". That is definitely not the case. A business owner’s coverage needs to reflect the specific needs of the business. Every business is unique, and so are its risks, which is why owners should think of insurance not as a generic requirement, but as part of how they protect what they’ve built and how they can plan for growth.
In a similar vein, what's the most common mistake you see small business owners make then it comes to insuring themselves?
One of the most common mistakes is treating insurance as a one-time purchase instead of something that should evolve and grow as your business evolves and grows. Owners may set up a policy when they first open, then forget to revisit it as they add equipment, hire staff, expand services, take on new contracts, or change locations. That can create a gap between what the business looks like today and what the policy was built to cover. In some cases, owners may be looking to save money and will choose the minimum level of coverage, without fully understanding the gaps that can create. At TD Insurance, we focus on providing tailored advice based on each business’s needs, so owners have the right level of protection in place when it matters most.
When budgets get tight, insurance can become one of the line items owners look to trim. Which coverages do you see owners most often reduce or drop, and what exposure does that open up?
When budgets get tight, owners may be tempted to lower policy limits, raise deductibles, or remove optional coverages to reduce premiums. One area that can be overlooked is business interruption coverage, even though it can be essential if a business has to pause operations after a covered loss. Without that protection, owners may still be responsible for ongoing expenses like rent and payroll while revenue is interrupted. While scaling back coverage can create short-term savings, it can also leave the business exposed at the exact moment it needs financial support the most.
Many small business owners may not have a good sense of what sort of insurance they need to protect themselves, and this must vary somewhat from sector to sector. Can you walk through how the risk profile differs across a few common types of small business?
Risk profiles can differ quite a bit depending on the type of business. A contractor may need to think about liability, tools and equipment that move from site to site, and commercial vehicle exposure. A restaurant owner may be more focused on property damage, equipment breakdown, food- or alcohol-related liability, and the impact of a temporary shutdown on income. A management consultant may have fewer physical assets, but business interruption and professional liability exposure can become more relevant. A retail store owner might be thinking about inventory, theft, liability exposures related to customer injuries such as slip and fall incidents, or seasonal spikes in activity. The right starting point is understanding how the business operates, where its biggest exposures are, and whether the coverage in place still reflects that reality.
Beyond traditional risks like fire or theft, owners increasingly face threats like cyberattacks and severe weather disruption. Which of these emerging risks owners need to take most seriously right now?
Severe weather events have been increasing over the past decade. Severe weather can interrupt operations, damage property, delay supply chains, and create income loss, especially for businesses with physical locations, equipment, or inventory. The key is not to assume these risks only apply to large companies. Small businesses can be vulnerable too, and the right conversation is about which risks are most relevant to how the business actually runs today.
As small businesses increasingly rely on digital tools to run day-to-day operations, cyber risks such as data breaches, system failures and cyberattacks have become a growing concern. While these threats continue to evolve, business owners can take practical steps to help protect their operations, including strengthening passwords, enabling multi-factor authentication, regularly updating software, and training employees to recognize fraud and phishing attempts. Staying informed about emerging threats and adopting strong cybersecurity habits can help businesses better prevent, detect and respond to cyber incidents before they disrupt operations. The importance of these measures is growing alongside broader concerns about protecting businesses from emerging risks in today’s increasingly digital environment.
Business owners have a lot to think about beyond insurance. How often should they be reviewing their insurance coverage, and what questions should they be asking themselves to make that process as efficient as possible?
At a minimum, owners should review their coverage annually, but they should also revisit it any time the business changes in a meaningful way. That could include moving locations, buying new equipment, hiring staff, expanding into new services, changing revenue levels, or taking on different kinds of clients or contracts. To make the review more efficient, owners can ask themselves a few practical questions: Has the business changed since the policy was last updated? What assets, operations, or liabilities would have the greatest financial impact if disrupted or damaged? Are there any new risks tied to technology, weather, vehicles, inventory, or growth? Those questions can help make the discussion with an advisor more focused and more efficient.
Beyond price, what should an owner look for when evaluating a provider?
Beyond price, owners should look for a provider that takes the time to understand their business and can explain coverage in a clear, practical way. Trust and advice matter, especially as a business becomes more complex. Owners want to know that the person advising them understands their operations, can help identify the right protection for their needs, and can support them as those needs change over time. Good service, clarity, and access to knowledgeable licensed advisors can make a real difference, because the goal is not just to buy a policy, but to feel confident that their business is properly protected.
If a small business owner made one change today to be better protected heading into next year, what would you suggest?
If a small business owner makes one change today, it should be to schedule a coverage review and make sure their policy still matches the business they are running now, not the business they were running a year or two ago. Businesses change quickly, and insurance should keep up with that. A simple check-in with a licensed advisor can help identify gaps, update limits or coverages, and give the owner more confidence heading into the next year. It is one of the most practical steps an owner can take to protect both the business and the momentum they have built.
