Business Insurance Guide

Business insurance protects your company against financial losses from lawsuits, property damage, employee injuries, and cyber attacks. The right coverage depends on your industry, revenue, and risk profile.

General Liability Insurance

Covers third-party bodily injury, property damage, and personal injury (defamation, libel). Covers legal defense costs and settlements. Most businesses need this. Typical cost: $400-1,500/year for $1M/$2M limits. Required by many clients and landlords.

Professional Liability (E&O Insurance)

Errors & Omissions insurance covers claims of professional negligence, failure to deliver services, or advice that causes financial harm. Essential for consultants, accountants, real estate agents, IT professionals, and any business providing advice or services. Cost: $500-2,500/year depending on risk level.

Workers' Compensation Insurance

Required in most states if you have employees. Covers medical expenses and lost wages for work-related injuries or illnesses. Cost varies by state and industry classification code. Premium based on payroll per $100. For office workers: ~$0.25-1.00/$100 of payroll. For construction: $5-20/$100 of payroll.

Commercial Property Insurance

Covers damage to your business property (building, equipment, inventory, furniture) from fire, theft, vandalism, and weather events. Does NOT cover floods or earthquakes (separate policies). Cost: $500-3,000/year depending on property value and location.

Business Owner's Policy (BOP)

A bundle of general liability + commercial property insurance, often at a discount (10-20% savings). Some BOPs also include business interruption, crime, and equipment breakdown coverage. Best for most small businesses. Cost: $1,000-3,000/year.

Cyber Liability Insurance

Covers data breach response costs, customer notification, credit monitoring, legal fees, ransomware payments, and regulatory fines. Increasingly essential for any business with client data. Cost: $500-5,000/year depending on data volume and industry.

Other Coverages

• Commercial Auto: For vehicles used for business.
• Directors & Officers (D&O): Protects board members from personal liability.
• Employment Practices Liability (EPLI): Covers wrongful termination, harassment, discrimination claims.
• Key Person Insurance: Life insurance on essential employees whose loss would hurt the business.
• Business Interruption: Covers lost income if you can't operate due to a covered event.

How to Choose

• Solopreneur (no employees): General liability + E&O (if you give advice).
• Small business with employees: BOP + workers comp + E&O.
• Tech company: BOP + E&O + cyber liability.
• Retail/Restaurant: BOP + workers comp + liquor liability (if applicable).
• Construction/Contractor: General liability + workers comp + commercial auto + builder's risk.