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Best Small Business Insurance for 2024

Explore top providers & the most important types of coverage
Quotes available through: Simply Business
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  1. Some of the most important types of business insurance include workers’ comp, general liability, professional liability, & commercial property insurance.
  2. Some small businesses may benefit from combining these coverages into a comprehensive plan like a BOP (business owner policy) or a commercial pack policy.
  3. Certain industries also carry unique risks. If you have field workers and company vehicles, you may benefit from commercial auto insurance and inland marine coverage. Similarly, tech businesses may benefit from cyber liability coverage.
  4. Regardless of the type of policy you choose, business insurance is imperative for companies of all sizes, even sole proprietors.
  5. In most cases, you’ll need to select several types of policies to ensure adequate coverage for diverse scenarios like property damage, theft, bodily injury, personal injury, slander, malpractice, legal expenses, medical bills, cyber-attacks, and more.
  6. We recommend using an online quote tool to find comprehensive coverage for your business needs. These tools review offers from multiple providers to match you with the best fit based on your business’s specific parameters.

We selected some of the best business insurance plans from top providers in America to bring you a list of solid small business insurance providers.

While these are just a curated selection, you can consult more plans using our online quote tool.

If you aren’t sure what types of insurance you need, read on to find out what types of coverage are most important for small businesses. Keep in mind that most companies buy several different types of policies to ensure they are covered for each possible scenario.

Once you know which type of policy to look for, it’s equally important to compare quotes from a range of the best business insurance companies before choosing a plan.

In this guide, we’ll break down all you need to know to get a policy that fits your needs. With the right protection in place, you can rest assured knowing your business is covered against unforeseen liabilities that could majorly impact operations.

That said, here are our top picks for the best business insurance for small businesses:

Our top picks for the best small business insurance companies

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Hiscox Insurance

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AMB Financial Strength
A (Excellent)
Specialized for:
General & Professional Liability Insurance

Why We Like It

Hiscox is one of the largest insurance providers in the US and operates in all 50 states. It offers serval types of coverage options to suit your needs including:

  • General liability insurance
  • Professional liability insurance
  • Business personal property insurance (add-on)

Hiscox specializes in insurance for small and micro-businesses and its robust coverage options are available for tons of business types & trades. Hiscox also has over 120 years of experience behind its name as part of the original Lloyds group from 1901. This long track record speaks volumes for how trustworthy Hiscox is.

Coverage Highlights

General Liability Coverage through Hiscox offers your choice of access to:

  • $1 million occurrence limit & $2 million aggregate limit
  • $2 million occurrence limit & $3 million aggregate limit

Other coverage highlights for General Liability include:

  • $100k in coverage for damage to rented premises
  • $5k in coverage for medical payments
  • Blanket Additional Insured endorsement (automatically included)
  • Waiver of Subrogation endorsement (optional)

Professional Liability Coverage through Hiscox offers your choice of access to:

  • $1 million occurrence limit & $1 million aggregate limit
  • $2 million occurrence limit & $2 million aggregate limit
  • $3 million occurrence limit & $3 million aggregate limit

Business Personal Property add-on:

  • Business Personal Property coverage is available as an add-on to your Hiscox General Liability policy
  • Choice of coverage limits: $5k, $10k, $15k, $20k, or $25k

Accredited Insurance

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AMB Financial Strength
A- (Excellent)
Specialized for:
General Liability Insurance

Why We Like It

Accredited Insurance is backed by the massively-known Travelers Insurance with whom it co-built a General Liability policy tailored specifically for small businesses.

Accredited offers insurance in all 50 states as well as Washington DC and has been in business for over 50 years. The company has proven itself for its high-quality service, stability, and integrity.

Accredited also has a strong financial strength rating of A- from AM Best. This means you can rest easy knowing that you will be supported by a strong company should anything go wrong.

Coverage Highlights

Contractors opting for General Liability through Accredited gain access to:

  • $1M Occurrence limit & $2M Aggregate limit

Non-contractors have the option of plans ranging from:

  • $100k occurrence limit & $300k Aggregate limit
  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights include:

  • $100k in coverage for damage to rented premises
  • $5k in coverage for medical payments;
  • Waiver of Subrogation (optional)
  • Blanket Additional Insured endorsements (optional)

Travelers Insurance

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AMB Financial Strength
A++ (Superior)
Specialized for:
Professional Liability Insurance

Why We Like It

Travelers is one of the largest insurance providers in the US and offers nationwide business insurance coverage.

Travelers can offer many different types of coverage for businesses of all sizes but is specifically well suited for Professional Liability plans for companies in the fields of:

  • Accounting
  • Bookkeeping
  • Tax Preparation

Travelers is a great choice for professional liability backing thanks to the brand’s nationwide coverage, 160 years of expertise, and top financial rating of A++ from AM Best.

Coverage Highlights

Professional Liability Coverage through Travelers offers access to:

  • $1 million occurrence limit & $1 million aggregate limit

Optional add-ons include:

  • Defense Outside Limits coverage


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AMB Financial Strength
A- (Excellent)
Specialized for:
Worker’s Compensation Insurance

Why We Like It

Cerity offers affordable workers’ compensation policies and can cover various types of businesses and industries. As a major insurance provider in the US, Cerity is known for its:

  • Low prices
  • Simple policies
  • Same-day coverage

When you sign up for a workers’ comp policy through Cerifty, you get same-day coverage and proof of insurance. This means you can get your business started faster with very little lag time.

Cerity is a well-known provider in the insurance industry and has an AM Best financial strength rating of A- (Excellent), as well as 4.4 stars on Trustpilot. Cerity is offered nationwide in all states except Ohio, North Dakota, Washington, and Wyoming (where private worker’s comp is not legally sold).

Coverage Highlights

Workers’ comp coverage through Cerity offers access to:

  • Bodily Injury by Accident at $1M per accident
  • Bodily Injury by Disease at $1M per each employee, subject to a $1M policy limit

Other coverage highlights for workers’ comp from Cerity include:

  • Statutory Workers’ Compensation coverage
  • Customers have the option to include or exclude the owner in coverage when permitted under state law

biBERK Business Insurance

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AMB Financial Strength
A++ (Superior)
Specialized for:
Worker’s Compensation Insurance

Why We Like It

biBerk is a subsidiary of the famous Berkshire Hathaway Insurance Group. As part of Berkshire Hathaway, biBerk is automatically backed by an A++ AM Best financial rating and over 75 years of experience in the insurance industry. This ensures you will get reputable service and solid coverage you can rely on.

The provider specializes in Workers’ Compensation coverage for small businesses across all US states except OH, ND, WA, and WY.

A major highlight of biBerk is that workers’ comp is available to sole proprietors and multi-employee businesses.

Coverage Highlights

Workers’ Comp coverage through biBerk includes Employers’ liability limits for:

  • Total policy limit of $500k
  • Bodily Injury by Accident at $100k/accident limit
  • Bodily Injury by Disease at $100k/employee limit
  • Coverage for the owner (optional depending on state law)

Other plan highlights:

  • biBerk’s Workers’ Comp plans offer statutory Workers’ Compensation coverage. This means that the employee is not required to prove that their employer is at fault to receive compensation.

Harborway Insurance

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AMB Financial Strength
A+ Superior)
Specialized for:
Inland Marine Insurance

Why We Like It

Harborway is a lesser-known provider that offers specialized coverage for:

  • General liability insurance
  • Business personal property insurance
  • Inland marine insurance

This provider offers great coverage for equipment and items you transport or store off-premises makng is great for companies that send employees to work off-site or occaisionally do field work.

While Harborway isn’t an AM Best rated company, it is reinsured by Munich Re which has an AM Best financial strength rating of A+.

Coverage Highlights

General Liability Coverage through Harborway offers access to:

  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights for General Liability include:

  • $100k in coverage for damage to rented premises;
  • $5k in coverage for medical payments;
  • Waiver of Subrogation (optional)
  • Blanket Additional Insured endorsement (automatically included)
  • Contractors’ Errors & Omissions endorsements (optional)

Business Personal Property Coverage through Harborway offers access to: *Property limits of $5k, $10k, $15k, $20k, $25k, and $50k *Blanket Additional Insured endorsement (automatically included)

Inland Marine Coverage through Harborway offers access to:

  • $5k or $10k coverage limits on inland marine property
  • Blanket Additional Insured endorsement (automatically included)
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Best types of business insurance

There is not a one-size-fits-all policy when it comes to business insurance, as each business is unique and coverage requirements can vary by industry.

That said, certain types of coverage are broader than others and some are arguably more important as well.

Some of the most important types of business insurance include:

  1. General liability insurance
  2. Professional liability (A.K.A. errors & omissions insurance)
  3. Workers’ compensation insurance
  4. Commercial property insurance
  5. Fidelity bonds
  6. Inland marine insurance
  7. Umbrella insurance
  8. Cyber liability insurance
  9. Sole proprietor business insurance
Advertiser Disclosure
BOPs combine general liability & commercial property insurance into a single plan which can be cheaper than buying separate policies.
Examples of coverage:
  • Replacing stolen company equipment
  • Lawsuit from a customer slip & fall accident
Protects businesses from claims of bodily injury, property damage, and advertising injury to third parties such as customers, visitors, vendors, etc.
Examples of coverage:
  • Bodily injuries
  • Repairing/replacing property
  • Libel or slander lawsuits
E&O insurance (a.k.a. professional liability) protects professionals against claims of business negligence, as well as lawsuits resulting from errors or omissions of information offered by company representatives.
Examples of coverage:
  • Legal defense fees
  • Court costs
  • Settlements
This covers employee theft of valuables items or funds. Especially important for businesses that send workers to clients’ homes or businesses.
Examples of coverage:
  • Replacing stolen property
  • Reimbursement of stolen funds
Workers’ comp covers employers and employees from financial losses & liability if they become injured or ill due to work-related causes.
Examples of coverage:
  • Medical expenses
  • Lost wages
  • Legal fees
Commercial property insurance can pay to repair or replace business property, equipment, and merchandise that has been stolen, lost, or damaged –– includes coverage for buildings you rent or own.
Examples of coverage:
  • Merchandise is stolen from your warehouse
Specialized form of commercial property insurance that covers damage, loss, and theft of physical assets held at a business’ primary location –– It does not cover the building.
Examples of coverage:
  • Repair of physical assets
  • Replacement of physical assets
  • Legal fees
Umbrella insurance is a single plan that can flexibly extend general liability, employer liability, & commercial auto insurance limits if you max out on claim limits.
Examples of coverage:
  • Injuries to customers visiting your premises
  • Company auto-accidents & injuries
This covers company vehicles and employees who drive them. Includes coverage for injuries, and vehicle damage, medical payments, collisions, and more.
Examples of coverage:
  • Fixing vehicle after a collision
  • Paying for medical bills of injured occupants
Inland marine insurance covers physical assets like goods and equipment when in transit over land or temporarily stored at off-site locations. It covers movable items not typically covered by standard property insurance.
Examples of coverage:
  • Repair of physical assets
  • Replacement of physical assets
  • Legal fees
Malpractice insurance covers certain healthcare professionals against claims of negligence or business malpractice that results in bodily harm to a patient or client.
Examples of coverage:
  • Legal fees relating to lawsuits
  • Payouts for patient death or injury
Cyber liability insurance protects companies’ data & intellectual property from cyber-related risks such as financial losses caused by cyber-attacks, external data breaches, etc.
Examples of coverage:
  • Forensics investigation
  • Repairs & Recovery costs
  • Legal Defenses
Product liability insurance can cover claims and lawsuits resulting from product defects that cause injury or damage to customers.
Examples of coverage:
  • Customer is hospitalized due to your product
  • Lawsuits from marketing errors
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What does small business insurance cover?

At a base level, business insurance will protect your company from financial losses, settle lawsuits, and reimburse you for damages. What is covered depends heavily on the types of policies you choose.

Generally speaking, we can group business insurance coverage in the following ways:

To help you get a handle on these different coverage options, below we have summarized the main points to note about each type of business insurance and what it covers versus other types of policies.

General liability insurance coverage

General liability insurance is the most common type of business insurance coverage. It protects businesses from losses resulting from lawsuits or other claims that may arise due to injuries suffered by customers or members of the public while interacting with your business. This type of coverage can also cover property damage caused in the operation of your business and other incidents.

Likewise, general liability insurance covers court costs and any damages awarded—up to certain predefined limits as listed within the policy documents. It does not, however, protect businesses against losses stemming from gross negligence, wrongdoing, or illicit activities. For negligence, you may need professional liability insurance.

Professional liability / errors & omissions insurance coverage

Professional liability insurance is commonly known as errors and omissions insurance (E&O) and protects individuals or organizations from damages due to bad recommendations, incomplete or inaccurate work, poor representations, and other errors or omissions in their work.

Professional liability insurance is essential for businesses that provide advice or conduct other knowledge-based consulting services that clients rely on. Examples of businesses that need E&O coverage include accountants, attorneys, consultants, engineers, and medical practitioners.

In addition to protecting against liability, E&O insurance may also cover legal costs if any claims arise which can help protect your business’s finances and reputation. While professional liability insurance is critical for certain types of businesses, it may not be necessary for those not engaged in other professional work.

Workers’ compensation insurance coverage

Workers’ compensation insurance is a type of coverage designed to help protect businesses that employ one or more people such as handymen or estheticians. However, it’s also available for sole proprietors. If you or an employee gets hurt or sick at work, workers’ comp helps cover medical expenses. It also provides compensation for a portion of lost wages while unable to work.

The exact details of workers’ comp coverage vary by policy, state regulation, the number of employees at the company, and additional policies or riders that may be triggered in certain cases.

In every state except Texas, workers’ comp is legally required for companies with at least one employee. Each state has its own rules and regulations about workers’ compensation insurance, coverage requirements, and policy options, so it’s a good idea to research thoroughly or speak to an insurance professional to understand your obligations before buying coverage.

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Commercial property insurance coverage

Commercial property insurance is a type of business insurance that protects businesses against financial losses due to damage or destruction of the physical assets they use in their operations. This type of policy is often used to cover things ranging from computers and other equipment to furniture, inventory, tools, and machinery, as well as signs, fences, and other fixtures.

Business personal property insurance is a subset of commercial property insurance that will cover items within a building, but not the building itself, making it ideal for businesses operating in rented spaces or for those who need supplemental coverage.

Commercial property coverage typically covers business property against damage resulting from accidents, fire, or smoke, as well as vandalism, theft, lightning strikes, and windstorms. In some cases, commercial property insurance can also provide coverage for lost revenue resulting from business interruptions caused by covered perils. Some business credit cards can also offer theft and damage insurance against business equipment purchases. However, businesses that rely on critical facilities or equipment should consider purchasing BPP or commercial property insurance to protect against losses from these various risks.

(BOP) business owner’s policy

A business owner’s policy (BOP) is a comprehensive insurance package designed to help protect businesses from financial losses.

The specific coverages contained in a BOP vary by policy, but most contain three key components:

  1. Commercial property insurance: protection for physical assets in the event of destruction by covered perils such as fire, theft, or vandalism
  2. General Liability insurance: protection against claims of negligence or injury caused by the business’s actions or products
  3. Business interruption insurance: replaces income lost due to damage to a property caused by a covered peril, allowing your company to continue operations while recovering from the incident

The key advantage of a BOP is that you can combine numerous protections into a single policy instead of purchasing several individual policies. These combined policies can sometimes come with a lower cost than premiums available for multiple individual coverages.

Cyber liability insurance coverage

Cyber liability insurance is increasingly becoming an important form of insurance that can protect your business in the event of a cyber-attack or data breach. Cyber liability covers damage caused to prospects, customers, and infrastructure due to a successful cyber attack, as well as the cost of notifying affected parties and providing credit monitoring services. It also provides coverage for a lawsuit resulting from a cyber incident.

Cyber liability coverage is essential for any business that relies on technology or conducts any part of its operations in the cloud. It’s also necessary for any business that regularly handles or stores sensitive customer information, especially digitally. This is true even for small and micro-businesses as they typically are easier targets for cyber-attackers. This has been proven through examples such as the rise in ransomware attacks on small businesses.

Inland marine insurance coverage

Inland marine insurance is a special type of business property insurance that protects businesses transporting goods and equipment—both personal and commercial—across land.

This type of coverage is commonly used in cases where equipment is being transported to or from a job site, inventory is being distributed to different retail facilities or items are being shipped via truck. In some cases, it can also protect equipment stored at an offsite location.

Compared to other types of business insurance policies, inland marine insurance coverage tends to be more specialized due to the varied and specific needs of businesses that use it, making it an ideal insurance for contractors and builders or for entrepreneurs who travel with merchandise.

This type of policy can be tailored to cover different aspects, such as cargo loss and damage liability, or provide replacement cost coverage options in the event of theft or destruction. If you travel for work, you may also want to consider covering yourself against trip mishaps with comprehensive travel insurance as a supplement to inland marine insurance.

What is not covered by business insurance?

Although business insurance provides important protection for small businesses, it doesn’t protect against everything.

Some things business insurance typically won’t cover include claims resulting from:

These exclusions vary by policy, so it’s important to understand the limitations of your policy when buying coverage.

Certain things like negligence or wrongdoing on the part of the small business owner or an employee are not usually covered. However, some specialized plans like malpractice insurance may be able to cover these types of scenarios in some cases.

What kind of insurance do I need for my business?

To start, almost all small businesses are required to have workers’ compensation policies in place to be able to operate. So, it’s best to check regulations in your state and municipality to see what is required for your business to operate.

Apart from this, we recommend that every small business consider the following types of insurance coverage as a minimum:

This combination of coverage should protect most businesses from a range of scenarios that they may encounter.

Note that you may also be able to qualify for a BOP or a commercial pack policy that can several of these coverages into one plan.

Ultimately, the policies you need depend on the specific risks your business faces and the amount of assets you need to protect.

Industry-specific business insurance

Certain industries face specific risks and require specialized types of business insurance.

Have a look at the list below for more information on your industry.

Advertiser Disclosure
Even solo workers need protection. There are special policies suited for sole proprietors who work alone. These can include workers comp, as well as other liability coverage to protect the business owner or customers whether at home or while on the job.
Get coverage for the things your homeowner policy won’t cover such as property, equipment, and theft of sensitive client information. It can also pay medical and legal fees if a third party is injured as a result of business activities, and more.
Contractor-specific insurance plans can help cover theft, damage, or loss of movable equipment needed for construction. It can also cover claims relating to personal & physical injury or illness to employees or third parties, and more.
Insurance for photographers can cover your equipment on and off-premises. Get coverage for payouts resulting from bodily & personal injury, negligence, photo/video leaks, and more.
Esthetician Insurance can cover you as a sole proprietor or with employees. Ensure your supplies are covered in case of damage, theft, or loss. Get general & professional liability protection regardless of if you work in a fixed location or visit clients’ homes, and more.
Get coverage for you and your employees in case of injury or illness. Protect your equipment, supplies, and furniture from theft & damage. Ensure visitors and clients are covered in case of personal or bodily injury as a result of business operations.
Get protection from liability and injury to clients regardless of your working location. Insurance for personal trainers can also cover damage or theft of equipment, as well as pay for medical bills or lost wages, and more.
Handyman insurance provides coverage for a range of risks faced by handyman businesses. It typically includes protection for bodily injury and property damage liabilities, personal and advertising injury claims, products liability, and completed operations.
Electrician’s insurance protects your equipment while on the job or moving about. You can also get coverage in case you, an employee, or a client gets injured. Protections can also cover claims of negligence or errors in your work, and much more.
Protect your merchandise and goods while in transport or storage. E-commerce business insurance can also protect you from cyber-related risks, such as hacking and data breaches. Blanket coverage is available for general & professional liability, and more.
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How much does small business insurance cost?

A typical policy with basic small business coverage can range from several hundred to a few thousand dollars annually.

Based on sales data from insurance aggregator Simply Business, here is the average cost of business insurance by industry:

While these numbers are just an example of average quotes based on the people who make it through our quote journey, they can give you an idea of the relative cost of business insurance per industry.

The actual cost of your insurance will depend on your specific circumstances and the provider you choose.

List of factors that determine small business insurance costs

The cost of small business insurance varies based on many factors including:

  1. Size & annual turnover of the business
  2. Type of business & the industry
  3. Level of risk the business poses
  4. Number of employees
  5. Business location
  6. Type of coverage purchased
  7. Coverage limits & premiums
  8. Existing/previous claims history

As seen in the example above, you may qualify for lower rates based on your industry, and the combination of coverages you choose.

One way to reduce your costs is by opting for lower coverage limits or higher deductibles. Keep in mind, however, that while these steps may reduce your premiums, you may have to cover more expenses out of pocket in the event of a covered incident.

That said, there are some tips for finding a good deal on business insurance.

Tips for getting cheap business insurance

Follow these tips to get the best deal on insurance for your small business:


Identify what coverage you need and how much

As a business owner, you’re in the best position to understand the risks your business faces and the assets that need to be protected. Take time to assess your business risks carefully. Research different coverage options such as professional liability, product liability, and commercial property insurance. Once you identify the types of coverage you may need, you can get a quote for those various coverages, either individually or in a combined business owner’s policy.

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Bundle your policies if possible

Bundling multiple coverages into a single policy like a BOP or commercial pack helps you save both time and money. Bundling adds flexibility and convenience, allowing for customized coverage that fits the specific needs of the business. Moreover, bundling often leads to reduced premiums compared to purchasing the same coverages as individual policies. Additionally, bundling policies makes renewing or making changes simpler because it ensures each policy line is updated simultaneously.

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Compare rates & quotes online or with an agent

Shopping around for business insurance is a great way to find the right coverage at the best price. A quick and efficient way to do this is by using an online quote comparison tool like the one available here through LA Times Compare or speaking to one of our agents over the phone. With the online tool, you can easily compare quotes of different business policies, quickly identifying those that match your needs while offering competitive prices. This process saves valuable time, ensuring you secure top-quality protection without wasting effort searching for the best deals. Additionally, these online tools can answer related questions, making it easier to consider relevant details before binding coverage.

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Reduce risks to avoid expensive claims and premiums

Your claims history can influence the price of business insurance. If you have a history of making claims, your policy will cost more. Therefore, reducing risks in the workplace is key to filing fewer claims, and therefore, getting a better rate for your business insurance policy.

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Implement risk management policies

Implementing safety procedures in the workplace can help you and your employees better handle conditions that may cause or exacerbate incidents that could trigger a claim. Demonstrating a solid risk-management policy to your insurance provider can also help get you a better deal on your insurance policy. By implementing these procedures, you can reduce the likelihood of accidents and the overall impact of an incident, should one occur. According to OSHA, the Occupational Safety & Health Administration, safety procedures could include posting proper warning signs where necessary, equipping employees with protective gear appropriate to their roles and functions, instituting lockout/tag-out policies to prevent equipment malfunctions, and training employees on policies and procedures.

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Maintain workplace cleanliness

Cleanliness is another key to reducing workplace accidents. This means regularly checking your workplace environment and eliminating clutter or damaged materials that can be hazardous. Taking these preventative measures may involve some small costs in the near term. Still, they can reduce long-term costs by preventing costly claims.

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Ultimately, the cost of small business insurance is based on the risk that your business represents to a carrier, the likelihood that it will file a claim during its covered period, and the likely cost of that claim to the carrier.

The more you can do to reduce the risk your business represents to a carrier, the lower its cost of coverage.

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Best Small Business Insurance FAQ

Are you required to have business insurance?

While all businesses should carry some form of liability insurance to cover potential losses or damage, it is not always required by law—except for workers’ compensation (required in almost all states) and commercial auto insurance for businesses that operate vehicles on public roads.

Also, certain industries, such as healthcare and construction, may require additional types of professional liability protection by law or deem them necessary for securing contracts with contractors or customers.

How do I know if I need small business insurance?

In general, you need insurance if you own or operate a small business that produces revenue, owns assets, or interacts with the public. This is because no matter how big your company is or what industry it’s in, your business faces risk and represents some amount of risk to the public. If an incident occurs, your business may face crippling financial losses if you don’t have adequate coverage.

The type of insurance you need for your business depends on your industry and the specific risks you face. Based on the type and size of your business, you may need general liability insurance, professional liability (errors and omissions) insurance, workers’ compensation insurance, cyber liability insurance, commercial property insurance, inland marine insurance, or other types of coverage.

How much does business insurance cost?

The cost of business insurance varies widely depending on the size and type of business being insured and the type and amount of coverage being purchased. Generally, you can expect to pay anywhere from a few hundred dollars up to several thousand dollars per year, depending on your industry and the size of your operation.

In addition, factors such as location, claims history, number of employees, types of employees, and value of business assets can also impact the cost of business insurance. This is why it’s essential to research what types of coverage you need to protect your business and to take precautionary steps like implementing safety procedures and maintaining a clean workspace to reduce risk and save money on premiums.

What are the five main types of business insurance?

The five main types of business insurance are general liability insurance, professional liability (often called errors and omissions, or E&O) insurance, workers’ compensation insurance, cyber liability insurance, and commercial property/inland marine insurance. General liability protects your business from certain claims due to bodily injury and property damage. Professional liability insurance covers legal costs if the company is sued for negligence, mistakes, or failure to provide promised services.

Workers’ comp protects businesses against worker claims resulting from illness or injuries sustained in the course of their work duties. This type of coverage is legally required in all states except Texas for businesses with one or more employees. Cyber liability covers businesses from losses incurred due to online security breaches such as data breaches, viruses, and other online attacks.

Commercial property/inland marine insurance protects any physical assets, such as equipment owned by the business organization, in case of damage, theft, or disasters like fire. To decide which of these coverages are necessary for your business, consider the risks your business faces and what assets need to be protected.

How do you purchase business insurance?

The easiest way to buy business insurance is online – through comparison sites or directly on a provider’s website. Some companies also allow you to speak to an agent over the phone or visit an insurance broker in your area.

However, purchasing business insurance is a multi-step process and should begin with researching the various types of coverage that are best for your business.

Next, we recommend getting quotes from multiple insurance providers or using an online tool like the one found on LA Times Compare that does this process for you. Review policy conditions to understand limits, deductibles, exclusions, and other conditions and limitations of coverage.

Also, consider discussing your needs with an agent before committing to a policy.

Call here and discuss your needs with an agent for free.

After selecting an insurance company and policy that meets your needs, you can sign and submit any necessary paperwork and pay applicable deposits or premiums. Once you purchase coverage, ensure all employees are familiar with company policies, risk management procedures, and safety measures, and follow all relevant protocols once the policy goes into effect.

Kiah Treece
Kiah Treece Business Finance

Kiah Treece is a business finance expert with more than five years of editorial experience. Through her experience as a small business owner, real estate investor, and lawyer, she’s knowledgeable in the areas of banking, loans, financing, and insurance for small businesses. Her first-hand experience has enabled her to break down complex financial topics to help consumers make informed decisions so they can spend their money wisely.