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What is Small Business Insurance?

Small business insurance, also known as commercial insurance, is a type of insurance coverage that helps protect businesses from unexpected events. These events can include property damage or loss, lawsuits, employee injuries, and more. 

What Does Small Business Insurance Cover?

There are many different types of small business insurance, and the specific coverage you need will depend on the nature of your business. Some of the most common types of small business insurance include:

  • Business Owners’ Policy: sometimes referred to as a BOP policy, this coverage combines business property and liability insurance into one policy, protecting the small business owner from a variety of risks.
  • Professional Liability: also known as errors and omissions (E&O) insurance, helps protect a small business if sued for negligence or professional errors.
  • Cyber Liability: helps protect a business from losses arising from data breaches and cyber-attacks.
  • General Liability: covers a business for claims of bodily injury or property damage that the business owner or its employees may have caused to others.
  • Commercial Property: helps protect the business’s property from damage or loss.
  • Workers’ Compensation: also referred to as workers comp insurance, can help provide benefits to employees who are injured or become ill because of their job.
  • Commercial Auto: also known as business auto insurance, helps give the business liability and physical damage protection for vehicles that are used for business.

There are many other specialized types of small business insurance that may be appropriate for your business. It’s important to speak with a licensed insurance professional to understand all of the small business insurance coverages that should be considered for a given business.

Why Do You Need Small Business Insurance?

Some small businesses are required to have small business insurance.  Others should consider it.  For example, if a small business has employees, they may be required to carry workers’ compensation insurance.  Ahead of starting work as an independent contractor, the contractor could be required to show proof of liability insurance.

Even if insurance is not required, small business owners should seriously consider these coverages to help safeguard their business from the unexpected.

How Much Does Small Business Insurance Cost?

The cost of small business insurance coverage will vary depending on a number of different factors, including which type of coverage a business is looking for, the size of the business, the type of property owned, the amount of coverage needed and more. It is important to get quotes from several different insurers to get the best possible rate. According to The Hartford, some of the average monthly costs for key coverages small business owners should consider include[1]:

  • Business Owner’s Policy (BOP) – Average Monthly Premium: $261
  • General Liability Insurance – Average Monthly Premium: $88
  • Workers’ Compensation Insurance – Average Monthly Premium: $70

How to Choose Small Business Insurance?

Small business owners looking for business insurance should work with an insurance agent who can help them assess your risks and recommend the right coverage for your business.

Get a Small Business Insurance Quote

It’s important to work with an insurance expert to make sure you get the right liability insurance for your business. At BuyLiability.com, we’ve ranked the best Small business insurance providers to help you find the best coverage for your Small Business.

Disclaimer

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At BuyLiability.com, we spend hours researching Small Business Insurance companies and marketplaces to help create useful, unbiased product reviews for Small Business Owners like you.  In doing so, we make every effort to keep the most updated and accurate information on our website, but we make no warranties as to the accuracy, timeliness, and completeness of the information referenced within.  We are not liable in any manner for any direct, indirect, or consequential damages arising out of the access, use, or inability to use our website or any third-party site linked to our site.  We have no control over third-party websites that we link to on our site and as a result, are not liable for third-party websites that we link to on our site and are not responsible for the content, its accuracy, function, or legality of the actual websites. 

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