Small Business Insurance: Protecting Your Dream
Starting a business is risky—but the right insurance shields you from financial disasters. Here’s a breakdown of essential small business coverage, costs, and how to choose wisely.
Why Small Business Insurance Matters
Lawsuits, accidents, and theft can wipe out your company.
Many states require certain policies (e.g., workers’ comp).
Clients & landlords often demand proof of insurance.
6 Must-Have Policies for Small Businesses
General Liability Insurance
Covers: Customer injuries, property damage, lawsuits (e.g., slip-and-fall).
Who needs it? All businesses, especially those with customer interactions.
Avg. cost:
500
–
500–1,000/year.
Professional Liability (Errors & Omissions – E&O)
Covers: Client lawsuits over mistakes, missed deadlines, or bad advice.
Who needs it? Consultants, freelancers, agencies.
Avg. cost:
800
–
800–2,000/year.
Commercial Property Insurance
Covers: Damage to your office, equipment, inventory (fire, theft, storms).
Who needs it? Brick-and-mortar stores, home-based businesses with expensive gear.
Avg. cost:
1
,
000
–
1,000–3,000/year.
Workers’ Compensation
Covers: Medical bills & lost wages if an employee gets hurt.
Who needs it? Required in most states if you have employees.
Avg. cost:
0.75
–
0.75–2.50 per $100 of payroll.
Business Owner’s Policy (BOP)
Bundles general liability + property insurance at a discount.
Best for: Small retailers, cafes, service businesses.
Avg. cost:
1
,
200
–
1,200–2,500/year.
Cyber Liability Insurance
Covers: Data breaches, ransomware attacks, client lawsuits.
Who needs it? Any business storing customer data (even small e-commerce).
Avg. cost:
1
,
000
–
1,000–7,000/year.