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What type of small business insurance do I need?


As a new business owner, one of the first things you need to take care of is insurance, but what insurance do you need?

In this guide, we're going to cover the basic types of insurance policies that every small business should consider. And if you're ready to take the next step, you can get an instant quote and lock in a policy with Durable + Thimble Insurance.

General Liability

General liability is the most important type of insurance for almost any business, and if you're only going to get one insurance policy, make it this one. In a nutshell, general liability insurance protects you and your business against claims resulting from third-party bodily injury or property damage. Without this coverage, any accident that results in a single large claim could be enough to put you out of business.

Whether you're a consultant, contractor, or cleaner–you just never know what is going to happen on your next project, and General Liability provides the peace of mind you need to do your job confidently. If this coverage seems right for you, get an instant quote here.

Workers Compensation

Workers’ compensation insurance (AKA "Workers' Comp") is a type of business insurance that is designed to protect business owners in case an employee is injured or becomes ill on the job. If you are a solo worker, you can also purchase workers' comp for yourself. Note that most states require any business with employees to purchase workers' comp.

Essentially, workers' comp covers medical/dental expenses, death benefits, lost wages, permanent or temporary disability, and rehabilitation or retraining in the following scenarios:

  • Employee illness
  • Employee disability
  • Repetitive stress injury

If you have employees and are considering workers compensation, you can get an instant quote here.

Note: most states require any business with employees to purchase workers' comp and a few states require employers to buy workers' comp from a state fund.

Business Equipment Protection

If you rely on expensive equipment to run your business–whether it's a camera or a fleet of lawn mowers–business equipment protection is something you should consider. Unfortunately, accidents and theft happen, and having to repair or replace expensive equipment can be a major financial hardship on a growing business.

While general liability insurance protects you from third-party claims, business equipment protection covers you for the cost of your own equipment in the event that it's accidentally damaged, lost, or stolen. If this coverage seems right for you, get an instant quote here.

Professional Liability Insurance

For some business owners, the risks of doing business extend beyond physical damage to people and property. If you operate a professional service business, you need to consider the possible monetary damages to clients and customers that arise as a result of the service you provide.

Also known as Errors and Omissions Insurance, professional liability insurance covers you in the event that a perceived mistake in your service or advice results in a customer experiencing financial loss. Without this coverage, a negligence claim of this sort could result in expensive legal fees and multiple court appearances. If professional liability insurance is right for you, get an instant quote here.

Commercial Property Insurance

If your business operates out of a physical location, you should consider commercial property insurance. Commercial property coverage protects you in the event of accidental loss, damage, or theft to your physical location and any of the contents therein. It also covers damage or loss of any equipment required to maintain your physical location (lawnmowers, etc.). Whether you rent, lease, or own your business property-this is an important policy to have. If commercial property insurance is right for you, get an instant quote here.

Business Owners Policy

The final option we'll cover is a business owners policy. A BOP is essentially a combination of two of the policies outlined above: general liability + commercial property. This policy also provides you with business interruption insurance, which compensates you in the event that any damage to your property results in an interruption of service. For any small business with a physical location, a BOP is both a more convenient and cost-effective option than purchasing liability and commercial property insurance separately.  If a business owners policy is the right option for you, get an instant quote here.

So now you know a bit more about small business insurance, but if you're looking for more detailed information or to explore a different policy, we recommend Greenlight: the small business blog from Thimble Insurance.

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