3 minute readBusiness
Nearly every small business starts with general liability, property coverage for equipment and inventory, and workers' compensation once it has employees. From there it depends on the work: professional liability for advice, commercial auto for vehicles, and cyber coverage for anything that stores customer data.
What you need to know
The common core
General liability, business personal property, business interruption, and workers' compensation cover the majority of small-business exposure.
Then add by industry
Contractors need tools and installation coverage; restaurants need liquor liability and spoilage; consultants need errors and omissions.
Contract requirements drive limits
Leases and client agreements often dictate minimum limits and additional-insured wording, so read them before binding.
Common mistakes
- Setting property and income limits from rounded-down guesses instead of real numbers.
- Skipping hired and non-owned auto because the business owns no vehicles.
- Signing contracts that require limits or wording the policy does not provide.
- Letting subcontractor certificates lapse, which shows up at audit.
- Treating insurance as a one-time purchase while the business keeps changing.
When to talk to an agent
Talk to an agent before signing a lease or a major contract, when you hire your first employee, when revenue or payroll changes materially, and any time you add a service, location or vehicle.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.