Small Business Insurance
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Types of business insurance

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

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 icon

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

Learn more about general liability insurance.

Professional liability insurance icon

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 icon

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

Learn more about workers' comp insurance.

Commercial auto insurance icon

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

Learn more about commercial auto insurance.

Highly recommended coverage for small businesses

Cyber insurance icon

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

Learn more about cyber insurance.

Commercial property insurance icon

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

Learn more about commercial property coverage.

Contractor’s tools and equipment coverage icon

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 icon

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

Learn more about product liability insurance.

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.

Compare different types of business insurance policies

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.

What our customers are saying

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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

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