Running a company means managing risk. Small business insurance helps protect your finances if a lawsuit, accident, theft or disaster strikes. Here are the main coverages to consider.
1. General Liability Insurance
Covers third-party bodily injury, property damage and advertising injury claims. It is the foundation of most small business insurance programs and is often required by landlords and clients.
2. Commercial Property Insurance
Protects your building, equipment, inventory and furnishings from fire, theft, vandalism and certain weather events.
3. Workers’ Compensation Insurance
Pays medical costs and lost wages for employees injured on the job. Most states require it once you have employees.
4. Professional Liability (Errors & Omissions)
Protects service providers such as consultants, designers and accountants from claims of mistakes, negligence or failure to deliver.
5. Business Owner’s Policy (BOP)
A bundle that combines general liability, property and often business interruption coverage at a lower price than buying separately. It suits many small, low-risk businesses.
6. Commercial Auto Insurance
If you use vehicles for business, personal auto policies may not cover you. Commercial auto protects drivers, vehicles and liability.
7. Cyber Liability Insurance
Helps pay for data breach response, legal fees and recovery costs when customer data is compromised.
| Coverage | Best For |
|---|---|
| General liability | Almost every business |
| Workers’ compensation | Businesses with employees |
| Professional liability | Service and consulting firms |
| Cyber liability | Businesses storing customer data |
How to Choose and Save
- List your risks: location, employees, equipment, clients and data.
- Check legal and contract requirements.
- Compare quotes from several insurers or an independent broker.
- Consider a BOP to bundle coverage and save.
- Review your policies every year as your business grows.
Final Thoughts
The right coverage protects the business you worked hard to build. Speak with a licensed commercial insurance agent to tailor a plan to your industry.