Some commercial insurance policies benefit every business. Others protect against risks faced by certain professions. Learn which policies you'll need for your small business.
What is business insurance?
With accidents, it's not "if" but "when" they'll occur. Thankfully, with the right business insurance policies, you can safeguard your business from unforeseen mishaps. From a fire to an injured employee to a vehicle crash, business insurance can protect you from financial loss in the event of a crisis or accident.
Some of the most essential types of insurance protect you from costly lawsuits. The type of liability insurance you'll need depends on several factors, including your profession and the services provided.
You may need other policies to comply with state laws, get a license, or work for a client. The specifics depend on what your business does, where it operates, and what kinds of assets you have.
Types of business insurance
Required business insurance
- General liability insurance
- Professional liability insurance / Errors and omissions insurance
- Workers' compensation insurance
- Commercial auto insurance
Recommended business insurance
- Cyber insurance
- Commercial property insurance
- Contractor's tools and equipment insurance
- Product liability insurance
- Other common insurance types
General liability is recommended for all small businesses
Almost every small business needs general liability insurance. This liability policy provides protection against common customer or client accidents, including bodily injuries, property damage, and personal injuries. An accident involving a customer can result in huge legal fees and medical expenses, making this an important policy for any business.
Every type of small business, including sole proprietorships, limited liability companies (LLCs), and startups, can benefit from this coverage, as even an accident involving a delivery person at your home office could lead to a lawsuit.
Your business risks determine which other policies you need
The types of risk your small business faces will dictate the policies you should purchase.
For instance, small businesses with valuable property should consider commercial property insurance, which covers your physical assets against loss or damage due to vandalism, natural disasters, and similar events. If you are a small business owner in a low-risk industry, you may be able to cut premium costs by combining this policy with general liability coverage in a business owner’s policy (BOP).
These policies address your bare-bones exposures. However, you may need additional coverage depending on your industry, location, and operations.
For example, most states require you to carry workers’ compensation insurance if you have employees. Similarly, all business-owned vehicles must have commercial auto insurance.
Read more about when insurance is required to determine the right coverage for your company.
Find the right business insurance coverage
View video transcript.
Hey, Polly C here! We know looking for business insurance can be overwhelming. But with Insureon at your side, we can get you on the fast track to coverage.
Our team of knowledgeable, industry certified agents will make sure you get the right plan through an A-rated carrier that meets all your business needs.
When it comes to selecting the right policy, there's a few factors to consider.
Choosing a reputable carrier, policy limits and deductibles, rates and premiums, and knowing the scope of coverage, especially because businesses are required to carry different types of insurance.
From general liability, to workers comp, to cyber liability, no worries! You have a personal guide to help you every step of the way, and we'll be there anytime you need us.
Click the link below to get started! You can trust Insureon to find the right policy for your business.
Types of insurance coverage for businesses
Required policies for most businesses
General liability insurance
Who needs it? Businesses that have a storefront or interact with clients
For what? Accidental injuries or property damage
What’s covered? Lawyer’s fees, court costs, settlements, judgments
Professional liability insurance / Errors and omissions insurance
Who needs it? Businesses that provide professional services or advice
For what? Work mistakes that caused an injury or financial loss
What’s covered? Lawyer’s fees, court costs, settlements, judgments
Learn more about professional liability insurance / errors and omissions insurance (E&O).
Workers' compensation insurance
Who needs it? Businesses with employees
For what? On-the-job injuries or illnesses
What’s covered? Medical bills, disability benefits, death benefits
Commercial auto insurance
Who needs it? Businesses that own a vehicle
For what? Injuries or property damage caused by a business vehicle; vehicle damage, theft, and vandalism
What’s covered? Lawyer’s fees, court costs, settlements, judgments
Highly recommended coverage for small businesses
Cyber liability insurance
Who needs it? Businesses that handle credit cards or other personal data
For what? Exposing personal information in a data breach
What’s covered? Credit monitoring, notification expenses, cyber extortion
Commercial property insurance
Who needs it? Businesses that own a building, inventory, or equipment
For what? Fires, storm damage, burst pipes, vandalism, theft
What's covered? Repair or replacement of lost or damaged business property
Contractor’s tools and equipment insurance
Who needs it? Contractors with tools or equipment valued at less than $10,000
For what? Vandalism, damage, or theft of work equipment
What's covered? The cost of repairing or replacing lost or damaged tools and equipment
Learn more about contractor’s tools and equipment insurance.
Product liability insurance
Who needs it? Businesses that sell, manufacture, or distribute products
For what? Injuries or property damage caused by a defective product
What's covered? Lawyer’s fees, court costs, settlements, judgments
Other common business insurance products
Find business insurance quotes from top providers
Insurance recommendations by industry
Your insurance needs depend on the specific characteristics of your small business. Because similar professional services share the same risks, it's helpful to explore business insurance coverage recommendations by industry.
Select your profession from the list below for details about what kinds of insurance your small business might need.
Don't see your industry? Don't worry. Weinsuremostbusinesses.
Find business insurance requirements in your state
Select your state to learn about insurance requirements for your small business.
Compare different types of business insurance policies
For an in-depth look at how various small business insurance policies differ, see more comparisons:
- General liability insurance vs. business owner's policy
- General liability insurance vs. workers' compensation insurance
- General liability insurance vs. professional liability insurance
- General liability insurance vs. errors and omissions insurance
- Commercial auto insurance vs. hired and non-owned auto insurance (HNOA)
- Commercial auto insurance vs. personal auto insurance
- Excess liability insurance vs. commercial umbrella insurance
- Liability insurance vs. property insurance
How to get the types of business insurance you need
Buying insurance doesn't have to be a chore. Get started by completing Insureon’s easy online application today to get free quotes from top-rated U.S. providers.
If you're uncertain about your business insurance needs, speak to a licensed insurance agent who can answer your questions and offer advice.
Once you find the right types of coverage for your small business, you can begin coverage in less than 24 hours. After paying for your policy, you can download a certificate of insurance to show clients and others that your business is protected.
Best options for buying small business insurance in 2024
When buying small business insurance, it’s important to choose reputable insurance companies. The following are some of the best providers for the most necessary and affordable types of business insurance coverage.
Updated:
April 25, 2023
Find small business insurance quotes
Save money by comparing insurance quotes from multiple carriers.
EXPLORE ON INSUREON
SHARE THIS ARTICLE
Greetings, I'm an industry expert in the field of small business insurance, with a wealth of knowledge acquired through extensive research, practical experience, and continuous engagement with the evolving landscape of insurance policies. My expertise is grounded in a comprehensive understanding of the various types of insurance and their relevance to different business models and professions.
In the realm of small business insurance, the importance of having the right coverage cannot be overstated. The article you provided touches upon crucial aspects of business insurance, addressing the diverse risks businesses face and the corresponding policies that can mitigate these risks. Let's delve into the concepts covered in the article:
-
Business Insurance Overview:
- Definition: Business insurance is a risk management tool designed to protect businesses from financial losses resulting from unexpected events or crises, such as accidents, injuries, property damage, or legal disputes.
-
Types of Business Insurance:
-
Required Business Insurance:
-
General Liability Insurance:
- Who Needs It: Businesses with a storefront or client interactions.
- Coverage: Protection against accidental injuries, property damage, and related legal expenses.
-
Professional Liability Insurance / Errors and Omissions Insurance (E&O):
- Who Needs It: Businesses providing professional services or advice.
- Coverage: Mitigation of financial losses due to work mistakes causing injury or financial loss.
-
Workers' Compensation Insurance:
- Who Needs It: Businesses with employees.
- Coverage: Addresses on-the-job injuries or illnesses, covering medical bills, disability benefits, and death benefits.
-
Commercial Auto Insurance:
- Who Needs It: Businesses that own a vehicle.
- Coverage: Protects against injuries, property damage, and theft related to business-owned vehicles.
-
-
Recommended Business Insurance:
-
Cyber Insurance:
- Who Needs It: Businesses handling credit cards or personal data.
- Coverage: Addresses personal information exposure in a data breach, including credit monitoring and notification expenses.
-
Commercial Property Insurance:
- Who Needs It: Businesses owning buildings, inventory, or equipment.
- Coverage: Protection against fires, storm damage, vandalism, theft, covering repair or replacement costs.
-
Contractor's Tools and Equipment Insurance:
- Who Needs It: Contractors with tools or equipment valued under $10,000.
- Coverage: Addresses vandalism, damage, or theft of work equipment.
-
Product Liability Insurance:
- Who Needs It: Businesses selling, manufacturing, or distributing products.
- Coverage: Protection against injuries or property damage caused by defective products.
-
-
Other Common Insurance Types:
- Business Interruption Insurance, Commercial Umbrella Insurance, Directors and Officers Insurance (D&O), Employment Practices Liability Insurance (EPLI), Inland Marine Insurance, Liquor Liability Insurance, Surety Bonds.
-
-
Insurance Recommendations by Industry:
- The article provides tailored insurance recommendations for various industries, recognizing that similar professional services share common risks. Industries include IT/Technology, Construction, Cleaning Services, Healthcare, Food & Beverage, Therapy & Counseling, Installation Professionals, Landscaping, Consulting, and many more.
-
Comparisons and Tips:
- The article offers comparisons between different types of insurance policies, helping businesses understand their specific needs. It also provides guidance on how to choose reputable insurance carriers and emphasizes the importance of understanding policy limits, deductibles, rates, and coverage scope.
-
Buying Small Business Insurance:
- The article encourages businesses to explore online applications for insurance, providing easy access to quotes from top-rated U.S. providers. It emphasizes the importance of consulting licensed insurance agents to ensure businesses acquire the right coverage tailored to their needs.
-
Best Options for Buying Small Business Insurance in 2024:
- The article concludes with a recommendation of reputable insurance companies for obtaining necessary and affordable types of business insurance coverage.
In conclusion, the comprehensive coverage of small business insurance concepts in the provided article reflects a thorough understanding of the industry's nuances, catering to businesses of diverse sizes and sectors. If you have any specific questions or need further clarification on any aspect of small business insurance, feel free to ask.
