The policies every small business owner should know.
Business insurance is what keeps a lawsuit, an accident, or a fire from becoming a company-ending expense. Below are the core policies, who needs each one, and how carriers price them.
General liability is the first policy most businesses buy. It covers third-party bodily injury, property damage, and advertising claims, for example a customer who slips in your shop and sues. Landlords and clients commonly require a certificate before they'll sign anything. Estimate yours with the GL cost calculator.
Workers' comp is mandatory in almost every state the moment you hire your first employee. It pays medical bills and lost wages for job-related injuries, priced as a rate per $100 of payroll based on your employees' work class. See the workers' comp calculator.
A BOP combines general liability and commercial property (your equipment, inventory, and space) into one policy at a lower total cost than buying them separately. It is the usual starting point for small, lower-risk operations. Estimate it with the BOP calculator.
Premiums scale with industry risk, revenue, payroll, and property value. A solo consultant might pay under $600 a year for GL. A contractor with similar revenue pays several times more. The total cost calculator gives you a combined view.
U.S. government sources for further reading and to verify figures on this page: