Running a small business comes with risks that many owners underestimate. One accident, lawsuit, or unexpected event can threaten years of hard work.
Small business insurance exists to protect your company, finances, and personal assets. This guide explains the essential types of business insurance in the U.S. and how to choose the right coverage.
1. What Is Small Business Insurance
Small business insurance is a collection of policies designed to protect businesses from financial losses.
It can cover:
- Property damage
- Legal claims
- Employee injuries
- Business interruption
The exact coverage depends on your industry and business size.
2. General Liability Insurance
General liability insurance is one of the most important policies for any business.
It covers:
- Customer injuries
- Property damage
- Legal defense costs
Many landlords and clients require this insurance before working with you.
3. Commercial Property Insurance
This insurance protects physical assets such as:
- Office space
- Equipment
- Inventory
It covers losses caused by fire, theft, vandalism, and some natural disasters.
4. Workers’ Compensation Insurance
If you have employees, workers’ compensation is required in most U.S. states.
It covers:
- Medical expenses
- Lost wages
- Rehabilitation costs
This insurance protects both employees and employers.
5. Professional Liability Insurance
Also known as Errors and Omissions (E&O) insurance.
It protects businesses that provide services or advice against:
- Negligence claims
- Mistakes or omissions
- Client financial losses
6. Business Interruption Insurance
If your business is forced to close temporarily due to a covered event, this insurance helps cover:
- Lost income
- Rent and utilities
- Payroll expenses
7. How to Choose the Right Coverage
To choose the right business insurance:
- Identify your biggest risks
- Understand legal requirements
- Compare multiple quotes
- Avoid overinsuring unnecessary coverage
8. Common Mistakes Business Owners Make
- Buying minimum coverage only
- Ignoring exclusions
- Not updating policies as business grows
- Choosing price over protection
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Compare small business insurance quotes today and protect your business from unexpected risks.