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Walking the Wire Tempted to forgo insurance because you're a startup? Think twice. It <i>is</i> possible to get the protection you need.

Opinions expressed by Entrepreneur contributors are their own.

Q: I'm starting a homebasedbusiness that does background checks. Do I need errors andomissions (E&O) insurance? I'm having a hard time findingsomeone to carry my tiny business.

A: Your business will definitelyneed E&O insurance and for two reasons: First, in today'semployment environment, it's not uncommon for lawsuits to ariserelated to background- checking issues if something's beenmissed or overlooked. Second, clients feel greater safety inworking with firms that have insurance protection, which gives youa definite edge. Many such firms promote that they're insuredand bonded on their Web sites, business cards and vehiclesignage.

Business owners are often so passionate about their newbusinesses that they tend to overlook the liability risks thatbeing in business can bring. So you're to be commended forattending to such matters now, as you start your business.

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