Small Business Insurance

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What is small business insurance?

Small business insurance is exactly what it sounds like: insurance designed for small businesses like yours. You might need insurance to comply with state laws, rent an office, or sign a contract with a client.

Some policies help your business recover from fires and storms, others help pay for lawsuits brought by customers or employees. You can get coverage for auto accidents, theft, data breaches, and other specific risks.

Even when it’s not required, it’s a good idea to carry coverage. Otherwise, the high costs of legal expenses and medical bills can easily overwhelm a small business.

Top small business insurance policies

There's no single insurance policy that covers all risks. Commercial insurance policies cover a wide range of accidents, lawsuits, and other disruptions that could impact a business. These policies address the most common risks. 

General liability insurance icon

General liability insurance

A general liability policy covers common business risks including bodily injuries, customer property damage, and advertising injuries. It's required for most commercial leases.

BEST FOR
  • Slip-and-fall accidents
  • Damaged customer property
  • Libel and slander lawsuits
Business owner’s policy icon

Business owner's policy

A BOP bundles commercial property coverage and general liability coverage in one plan. It's one of the most cost-effective commercial insurance policies.

BEST FOR
  • Customer injuries
  • Accidental damage to customer property
  • Business interruption incidents
Workers’ compensation insurance icon

Workers’ compensation insurance

Workers' comp is required in almost every state for businesses with employees. It also protects sole proprietors against work-related injury costs that health insurance might deny.

BEST FOR
  • Employee medical expenses
  • Disability benefits
  • Workplace injury lawsuits
Commercial auto insurance icon

Commercial auto insurance

Most states require this coverage for business-owned vehicles. It helps cover legal costs in the event of an accident, along with vehicle theft and vandalism.

BEST FOR
  • Car accidents
  • Vandalism and theft
  • Weather damage
Professional liability insurance icon

Professional liability insurance

This policy can help cover legal expenses if a business is sued for professional negligence. It's also called errors and omissions insurance (E&O).

BEST FOR
  • Mistakes and oversights
  • Undelivered work or services
  • Advice that causes financial loss
Commercial property insurance icon

Commercial property insurance

A commercial property policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture.

BEST FOR
  • Fire
  • Vandalism and theft
  • Windstorms
Errors and omissions insurance icon

Errors and omissions insurance

E&O, sometimes called professional liability insurance, is common with professional services. It can cover legal costs related to your work performance.

BEST FOR
  • Missed deadlines
  • Errors in calculations
  • Misrepresentation
Cyber insurance icon

Cyber insurance

This type of coverage helps businesses recover financially from data breaches and cyberattacks. It's strongly recommended for any business that handles customer information.

BEST FOR
  • Data breach investigations
  • Customer notification expenses
  • Fraud monitoring services
Umbrella / excess liability insurance icon

Commercial umbrella insurance

Umbrella insurance provides additional coverage once another policy's limit is reached. It boosts coverage on your existing general liability insurance and other liability policies.

BEST FOR
  • Accidents that injure customers
  • Multi-vehicle auto accidents
  • Negligence in workplace safety
Most important insurance policies for a small business.

How much does small business insurance cost?

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Small businesses, especially low-risk ones, often qualify for discounted business insurance. Here are the average costs for top policies sold by Insureon:

General liability insurance: $42 per month
Professional liability: $61 per month
Workers' comp: $45 per month

Several factors affect policy costs, including:

  • Industry and risk factors
  • Business operations
  • Location
  • Number of employees
  • Policy limits and deductibles
  • Claims history
View Business Insurance Costs

How do I get small business insurance?

Insureon is the #1 digital business insurance agency. Our streamlined process helps you find coverage for your specific risks at an affordable rate.

Get insurance for your small business today in three easy steps:

  • Fill out our free application.
  • Compare custom quotes from trusted carriers.
  • Choose a policy and pay online.

Insureon's application asks for basic facts about your company, such as revenue and number of employees. After you complete it, you'll receive quotes from top-rated carriers for policies that fit your business.

Our insurance partners include The Hartford, Liberty Mutual, Nationwide, Philadelphia Insurance, and more. You won't see quotes from all providers, only those that are the best match for your business.

We partner with top-rated insurance companies

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Logo for Nationwide: "Nationwide is on your side"
The Hartford's logo: a deer crossing a stream.
The logo for Liberty Mutual Insurance in black and white.
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Verified business insurance reviews

Hear from customers like you who purchased small business insurance.

Business insurance for specific industries

These business insurance policies cover the risks of certain industries, such as retail, manufacturing, healthcare, food and beverage, and construction.

Product liability insurance icon

Product liability insurance

Included in general liability, this policy covers injuries and property damage caused by your product or completed service. It's also called products-completed operations coverage.

BEST FOR
  • Construction businesses and contractors
  • Manufacturers
  • Retailers and wholesalers
Medical malpractice icon

Medical malpractice insurance

Medical malpractice provides financial protection for healthcare professionals over legal claims related to negligence and mistakes. It’s a form of professional liability insurance.

BEST FOR
  • Misdiagnoses
  • Medication errors
  • Failure to monitor a patient
Tools and equipment coverage icon

Contractor's tools and equipment

This policy covers the value of a contractor's lost, stolen, or damaged tools and equipment.

BEST FOR
  • Equipment less than five years old
  • Mobile equipment
  • Small tools
Inland marine insurance icon

Inland marine insurance

This policy provides property coverage for business items used in the field. It typically pays for property that has been lost, damaged, or stolen.

BEST FOR
  • Property in transit
  • Unique or valuable property
  • Items stored off-site
Builder’s risk insurance icon

Builder's risk insurance

This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.

BEST FOR
  • Building construction
  • Building renovation
  • Worksite theft and vandalism
Liquor liability insurance icon

Liquor liability insurance

This policy helps pay legal fees, settlements, and medical costs if alcohol is served or sold to a visibly intoxicated person who then harms others.

BEST FOR
  • Injuries caused by intoxicated patrons
  • Property damage by intoxicated patrons
  • Legal defense costs

FAQs about small business insurance

Review answers to frequently asked questions about small business insurance coverage.

What does small business insurance cover?

No single insurance policy covers everything. In general, there are two broad areas of insurance coverage:

  • Business liability insurance covers incidents in which someone holds your business accountable for an injury, property damage, or financial loss. It pays for legal defense costs, such as attorney's fees, court costs, judgments, and settlements.
  • Commercial property insurance helps pay for theft and damaged business property, including your building if you own it. That includes damage from fires, storms, and vandalism.

A business owner's policy is a good place to start if you're unsure of which coverage you need. It includes both general liability insurance and property insurance at a discount, and protects against the most common lawsuits and damages.

Keep in mind that your homeowner's insurance, health insurance, and personal auto insurance will provide little to no coverage for business-related incidents. Learn more about small business insurance coverage and which policies are right for you.

Why do I need business insurance?

Business insurance, also called commercial insurance, provides crucial protection for any small business owner. Here are the top reasons why you might need coverage:

Learn more about why businesses need insurance.

How does business structure affect what kind of insurance I need?

Every business needs insurance, but the type of business can affect which policies you need. Small businesses have fewer resources to recover from costly lawsuits and accidents, which makes insurance a crucial part of risk management.

Here are a few examples of how business structure can impact the policies you need:

  • Businesses that have a board of directors need D&O insurance. Directors and officers insurance protects board members from litigation costs related to their business decisions.
  • Sole proprietors that drive their own car for work may need HNOA insurance. Hired and non-owned auto insurance covers legal costs if you get into an accident in a personal, leased, or rented vehicle used for business purposes.
  • Independent contractors might need a certificate of insurance. Clients often require contractors to provide proof of insurance for general liability, workers' comp, or other policies to ensure they're protected in the event of a lawsuit or incident.

Read more about insurance for your type of business:

Does my company need a business bond?

Many small businesses are both bonded and insured. This means they have bought a bond, in addition to carrying insurance. A bond acts as a financial guarantee that your business will complete a project as promised.

You might need a bond to sign a contract, bid on a project, or get a license. Here are the most common types of bonds:

If your business fails to meet the terms of a contract, a bond will reimburse the client for their financial loss. Unlike an insurance claim, your business must then pay this amount back to the company that issued the bond.

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Best options for buying small business insurance in 2024
We reviewed reputable providers for the most necessary and affordable types of business insurance coverage.

Can Insureon help me find small business insurance in my state?

Because coverage varies by state, it's important to have a knowledgeable agent. Our insurance agents are licensed in 50 states and Washington, D.C., and can help you comply with local requirements.

Here are several insurance products that you might need to comply with the laws in your state:

If you need help finding insurance and you're not sure of the laws in your state, contact an agent. They can help make sure you get the right policies and the amount of coverage you need.

How do I make a business insurance claim?

Policyholders should notify their insurer as soon as an incident occurs. To make a property or liability claim, simply call your insurance provider.

An agent will ask for a description of the incident and basic information such as your business's name and policy number. They will guide you through the process, answer your questions, and send the necessary paperwork.

Read more about how to make a general liability claim.

Where can I learn more about small business insurance coverage options?

You can find more information in our frequently asked questions about small business insurance.

If there are any additional questions you have about coverage, you can also contact a licensed agent. We can help you find the right coverage, discuss the types of insurance you need, and compare business insurance quotes, with underwriting from the nation’s top carriers. You can secure coverage and your certificate of insurance within 48 hours.

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