What insurance does a small business need?
Commercial insurance isn't one-size-fits-all. Here's the short list most small businesses start with — and why.
The right coverage keeps a business running when something goes wrong — a customer injury, a property loss, an employee claim, or a lawsuit. What you need depends on your industry, size and risk, but most small businesses start with a short, predictable list.
The usual starting point
- General Liability (GL): covers third-party bodily injury, property damage, and related claims — the foundation for most businesses.
- Business Owner's Policy (BOP): bundles GL with commercial property, usually cheaper than buying them separately.
- Workers' Compensation: required in most states once you have employees; covers work-related injuries.
- Commercial Property: protects your space, equipment and inventory.
Add based on what you do
- Professional Liability (E&O): for service and advice businesses (consultants, agencies, contractors).
- Cyber: if you store customer data or rely on systems to operate.
- Commercial Auto: if you or employees drive for the business.
- Commercial Umbrella: extra liability protection above your other policies.
How much does it cost?
Premiums depend on your industry, revenue, payroll, location and the coverages you choose. A small, low-risk business can often get general liability affordably; higher-risk trades pay more. The most reliable way to know is to have a commercial specialist price it against your specifics — which is exactly what a quick callback is for.
Frequently asked questions
Some coverage is: most states require workers' comp once you have employees, and commercial auto is required for business vehicles. Others (like general liability) aren't legally required but are often required by clients, landlords or lenders — and protect you regardless.
For many small businesses, a Business Owner's Policy (BOP) bundles general liability and property at a lower combined cost than buying them separately — a common, affordable starting point.
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