General Liability Insurance
The most fundamental business insurance. General liability protects your business from claims of:
- Bodily injury: A customer slips in your store
- Property damage: You damage a client's equipment
- Advertising injury: Libel, slander, copyright infringement
Average cost: $400–$1,500/year depending on industry and size.
Professional Liability (E&O) Insurance
Protects against claims of negligence, errors, or failure to deliver professional services. Essential for:
- Consultants and advisors
- IT and tech companies
- Real estate agents
- Accountants and lawyers
- Healthcare providers
Workers' Compensation
Required in almost every state if you have employees. Covers:
- Medical expenses for work-related injuries
- Lost wages during recovery
- Disability benefits
- Death benefits for families
Cost is typically $0.75–$2.74 per $100 of payroll, varying by industry and claims history.
Business Owner's Policy (BOP)
A bundled policy that combines general liability + commercial property insurance at a discount. Ideal for small to mid-size businesses. Typically costs 30–40% less than buying each policy separately.
Commercial Auto Insurance
If your business uses vehicles, personal auto insurance won't cover business use. Commercial auto covers company-owned or employee-driven vehicles used for business purposes.
Cyber Liability Insurance
Increasingly essential for any business that handles customer data. Covers:
- Data breach notification costs
- Credit monitoring for affected customers
- Legal defense and settlements
- Business interruption from cyber attacks
- Ransomware payments (in some policies)
At minimum, most new businesses need: General Liability + Workers' Comp (if you have employees) + Professional Liability (if you provide services). A BOP bundles the first two at a discount.