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
1️⃣ 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.
2️⃣ 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.
3️⃣ 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.
4️⃣ 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.
5️⃣ 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.
6️⃣ 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.