Running a business comes with risk. Whether it’s a customer injury, stolen equipment, or an employee accident, insurance helps protect you from the unexpected.
If you’re just getting started, here’s a breakdown of the most common types of small business insurance and how to know which one may apply to you.
Most common type of policy for small business. It protects you and your business if someone is injured at your business or accident damage to a client's property.
It typically covers:
Who needs it?
Almost every business should have general liability coverage, especially if you work with the public, rent space, or perform services at client locations.
Typical cost: $400–$1,000. These costs are only a general guide as you cost can vary based on location and type of business.
In some industries it is known as errors and Omissions insurance. Many fields have their own specific insurance options for this category such as malpractice insurance for the healthcare industry.
It typically covers:
Who needs it?
Most professional service industries will need some type of this insurance product: i.e. Consultants, tax preparers, therapists, designers, medical professionals and real estate agents, etc.
Typical cost: Varies greatly based on your profession.
If you have a physical location or equipment, this will compensate against things such as fire, theft or vandalism.
It typically covers:
Who needs it?
Retail stores, offices, warehouses, and anyone with expensive equipment.
Typical cost: Varies greatly based on your specific circumstances.
Some providers off this which combines general liability and property insurance in one which often can save some money on premiums.
Who needs it?
Great for small businesses that need both basic coverage types and want a simple, affordable option.
Typical cost: $500–$1,200 per year
Even if you have one employee you should have this. IT covers medical bills and lost wages if one of your employees is injured while on company time.
It typically covers:
Who needs it?
Any business with any number of employees.
Wisconsin Note:
In Wisconsin, you must have workers’ comp if you employ 3 or more people, or if you pay $500+ in wages in a calendar quarter.
Typical cost: Varies widely by industry and payroll size
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Final Thought
Business insurance doesn’t just protect your business—it protects your peace of mind. By understanding the basics and choosing the right coverage, you can focus on growing your business without losing sleep over what-ifs.