Liability Insurance Policy Information

Liability Insurance. In some situations, a person or business may unwillingly cause a person or party to be injured or damaged. If the affected person claims the damage, the individual or organization may undergo financial loss.
For example, a mail carrier may slip on your icy driveway and get injured. He can sue you for pain, suffering, medical expenses and lost income. A customer gets sick from using one of your products and takes your business to court. You accidentally injure someone while driving and wind up in court, paying substantial legal bills.
No one is immune from such occurrences. Without adequate liability insurance coverage, they can cause devastating effects to your business or career.
Liability insurance protects your company from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked liability insurance questions:
How Much Does Liability Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 Liability Insurance policy for small businesses ranges from $27 to $59 per month based on location, size, payroll, sales and experience.
What Are The Main Types Of Liability Insurance?
With court awards and legal fees getting more and more expensive, it is vital for everyone to get liability coverage from a trusted liability insurance provider. The insurer's duty is to defend you and cover legitimate claims posed against you up to a certain limit.
All costs including your defense costs and the cost of settling claims are covered, and this provides you with invaluable peace of mind.
Liability insurance protects you against loss if your actions, negligence, or a condition of your property causes injury or death to a person or property belonging to another person is damaged or destroyed. Without liability insurance, you would be on your own if you are found legally responsible for any number of reasons.
Below are the some main types of liability insurance that businesses and professionals should consider.
Why Do Businesses Need Liability Insurance?

Workers Compensation Insurance
According to law, employers in are responsible for the safety of their employees whenever they are at work. An employee may get injured while they work, or a former employee becomes ill due to the work they did while on your employment.
Such employees may sue you or your organization and claim compensation if they believe that you are responsible.
Employers' liability insurance ensures that you are protected from financial loss due to such claims. However, if your employee gets injured due to a motor accident, you may be covered by your motor insurance against any compensation claims.
Employee liability insurance is compulsory in most states for any employees of a business that are not owners, and you can be fined for not having a current insurance policy that complies with state laws.
General Liability Insurance
Public liability insurance covers an individual, business, a contractor or even a community building from any costs of legal action if they are found responsible for injury or death of a person, or loss or damage of property.
It covers you from claims made by members of the public or other businesses against you, but your employees can't sue you. Unlike employers' liability, public liability insurance is not compulsory in most cases.
Nevertheless, businesses in all industries are recommended to have a public liability cover if there is a likelihood of being sued for negligence.
In some cases, it is mandatory. For example, licensing authorities may require a business to have it to hold public events. This type of cover does not help you if you are involved in known criminal actions or hazardous activities.
The popularity of public liability insurance is increasing, and it may be included in insurance policies. If you find out that you are covered for public liability in other insurance products, ensure that the amount you are covered is enough.
Product Liability Insurance
According to government statistics, defective and dangerous products cause thousands of injuries annually in the United States. Responsibility for such injury may be distributed among all people who are involved in the product chain.
Parties exposed to product liability claims include the manufacturer, importer or distributor, the party who assembles and installs the products, the wholesaler and the retail store from which the customer got the product.
If you manufacture, import, sell or distribute products in, you should have product liability cover from your liability insurance company of choice. It covers you for any damage or injury that may be caused by the use of your products.
People who believe that they have been harmed by your product can sue you without having to prove that you were negligent or had the intention to cause harm.
Product liability insurance may also cover for claims made by a customer if they are harmed by the lack of adequate instruction on the use of a product. These claims might even be due to failure to warn on your product label. Therefore, this type of insurance is vital to any business that manufactures or distributes products.
Professional Liability
Regardless of how many years of experience you or your firm may have, there is a possibility that one day you or one person in your team will make a mistake. It might be professional negligence, loss of data, unintentional breach of confidentiality or defamation.
Professional liability (also know as errors and omissions (E&O) and malpractice) are designed to protect professionals such as doctors, lawyers, chartered accountants, architects, etc... from legal liabilities to pay for any damage caused by their negligence as they perform their professional duties.
Someone may sue you if he/she suffers a loss after applying your professional advice or receiving your service. Different types of professional indemnities are designed for different professions. For instance, the medical profession has medical insurance indemnity as a requirement for professional registration or licensing.
With respect to industry bodies regulatory requirements, professional indemnity liability insurance is mandatory especially for professionals such as accountancy, surveying, engineering to name but a few. Also, professionals working on contract terms such as IT consultants, business and management consultants will certainly need professional liability insurance to get a contract.
However, large or small a professional business is, without PI insurance the business is left vulnerable to financial and reputation compromise.
Small Business Insurance By Industry And/Or Type
Select the general industry or small business insurance type link below to find more detailed information on coverage, costs, exclusions and more:
- Advertising, Marketing and Media
- Agribusiness
- Arts and Recreation
- Auto Sales, Service And Repair
- Bonds
- Children And Pets
- Commercial Property
- Construction Contractors
- Contractors And Home Improvement
- Education, Colleges, Universities And Schools
- Food And Drink
- Health And Beauty
- Information Technology And Internet
- Local, State And Federal Government
- Manufacturing
- Medical And Dental
- Miscellaneous
- Non-Profit
- Professional Services
- Real Estate
- Retail
- Small Business Commercial Auto
- Small Business Insurance
- Sports And Fitness
- Warehouse And Storage
- Wholesale And Distribution
Advertising, Marketing and Media
Learn about media liability insurance - a specialized form of professional liability insurance policy that provides protection for legal claims brought by third parties.
- Advertising Agency
- Call Center
- Graphic Arts
- Graphic Designers
- Market Research Firm
- Marketing Consultant
- Public Relations
- Publishers
- Search Engine Services SEO
- Social Media Consultant
Agribusiness
Learn about small business agribusiness insurance - a type of commercial insurance protects farmers against loss of, or damage to crops or livestock.
- Aquaculture Fish Farm
- Commercial Fishermen
- Crop
- Dairy Farm
- Equine & Horse Farm
- Farm And Ranch
- Farm Equipment Dealers
- Farm Labor Contractors
- Livestock & Cattle
- Nursery And Greenhouse
- Nut Farm
- Poultry Farm
- Sheep & Goat Farm
- Swine, Hog & Pig Farm
- Tobacco Farm
Arts and Recreation
Read up on small business arts and recreation insurance.
- Amusement Parks
- Archery Ranges
- Artist
- Athletic Fields
- Ballparks
- Ballrooms
- Billiard And Pool Halls
- Bowling Alleys
- Carnivals
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Photographer
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Skating Rinks
- Shooting Ranges
- Skateparks
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Stadiums
- Talent Agency
- Tennis Centers
- Theaters
- Video Arcades
- Wedding And Special Event
Auto Sales, Service And Repair
Read about auto sales, service & repair insurance, which provides protection for damages done to customers vehicle's and other property as well as injuries resulting from the work done.
- Auto Dealers
- Auto Detailing & Mobile Car Wash
- Auto Dismantlers
- Auto Service Repair
- Auto Supply Parts Store
- Car Rental
- Car Wash
- Gas Station
- Motorcycle Dealers
- Parking Lot
- RV Dealers
- Snowmobile Dealers
- Truck Rental
- Used Car Dealer
Bonds
Learn about surety and fidelity bonds which are types of insurance that are used to protect against damage or loss in commercial transactions.
Children And Pets
Discover what business insurance policies cover for children and pet related small businesses.
Commercial Property
Read up on commercial property insurance coverage, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Condo Association
- Duplex Rental Property
- Dwelling
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
Construction Contractors
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how liability insurance can help protect your construction business from lawsuits.
- Bridge Contractors
- Building Contractors
- Concrete Contractors
- Construction Contractors
- Demolition Contractors
- Dredging Contractors
- Excavation Contractors
- Foundation Layers
- Framing Contractors
- General Contractors
- Masonry Contractors
- Mechanical Contractors
- Millwright Contractors
- Paving Contractors
- Roofing Contractors
- Sewer Contractors
- Steel Erection Contractors
Contractors And Home Improvement
Learn about contractor's insurance, including what it covers, how much it costs - and how business insurance can help protect your small business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Carpentry
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Dryer Vent Cleaning
- Door And Window Installers
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractor
- Fire & Water Restoration Contractors
- Flooring Contractor
- Garage Door Installer And Repair
- Glass Contractor
- Glazier
- Gutter Installation And Repair
- Handyman
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Landscaping
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Locksmith
- Painters
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Plumbing
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Subcontractor
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
Education, Colleges, Universities And Schools
Learn about insurance for educators that helps protecting your professional reputation and other legal liabilities arising from your educational services.
- Art School
- Beauty School
- Charter School
- Colleges, Universities & Professional Schools
- Language School
- Educational Services
- Tutoring
Food And Drink
Learn about restaurants, bars, liquor stores insurance coverages. See how food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.
- Bagel Shop
- Bakery
- Bar
- Beer Distributor
- Brewery
- Catering
- Coffee Shop
- Concession Stand
- Delicatessen
- Farmers Market
- Grocery Store
- Internet Cafe
- Liquor Liability
- Liquor Store
- Nightclub
- Pizzeria
- Restaurant
- Sandwich Shops
- Supermarket
- Winery
Health And Beauty
Learn about small business health and beauty insurance coverages that help protect tattoo artists, salons, spas, estheticians, cosmetologists, barbers, hairdressers, nail salons and more from legal liability.
- Acupuncture
- Barber Hair Dresser
- Beauty Salon
- Chiropractic
- Cosmetology
- Day Spa
- Diet Nutrition Services
- Esthetician
- Massage Therapy
- Medical Spa
- Nail Salon
- Permanent Cosmetics And Microblading
- Personal Trainer
- Tanning Salon
- Tattoo
- Weight Loss Center
Information Technology And Internet
Learn about IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- eCommerce
- Internet Business
- IT Consultant
- Online Store
- Software Developer
- Technology Services
- Telecommunications
- Website Design
Local, State And Federal Government
Discover what types of commercial insurance government entities need.
- Auditoriums
- County Administration Offices
- Courthouses
- Fire Departments
- Government Buildings
- Jails
- Law Enforcement Entities
- Municipalities
- Public Buildings
- Townships
Manufacturing
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product liability and/or product recall exposures due to the nature of their business operations.
- Adhesives
- Alarms
- Audio & Video Equipment
- Auto Parts
- Boxes
- Bricks
- Brooms & Brushes
- Buttons
- Cabinets
- Camping Equipment
- Canned Fruit & Vegetables
- Cans
- Canvas Products
- Caskets
- CBD Oil And Hemp
- Cement
- Ceramics
- Chemical
- Clock & Watch
- Clothing
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Computers
- Condoms
- Construction Equipment
- Cork Products
- Cosmetics
- Cutlery
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Electroplating
- Elevators
- Engines
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fences
- Fertilizer
- Fireworks
- Fur Garment
- Garage Door
- Gears
- Glass
- Glassware
- Gypsum Products
- Hosiery
- Ink
- Insecticides
- Iron & Steel Foundries
- Jewelry
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Manufacturing
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Millwork
- Monuments
- Musical Instruments
- Nanotechnology
- Nonferrous Foundries
- Ornamental Metalwork
- Paint
- Paper & Allied Products
- Pesticides
- Pet Food
- Pharmaceuticals
- Plastic & Rubber Toys
- Plastic Goods
- Plastics
- Plastics Molding, Forming & Extruding
- Pottery
- Product Liability
- Prosthetics
- Pulp & Paper Mills
- Refractory
- Residential Air Conditioning & Heating
- Rubber Goods
- Rugs
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Shoes
- Small Electrical Appliances
- Sporting Goods
- Springs
- Stone Products
- Tanneries
- Textiles
- Textiles Finishing & Coating
- Tires
- Tobacco
- Tool & Die Shops
- Vending Machines
- Wire
- Wire Rope
- Wood Furniture
- Woodworking
- Writing Instruments
- Yarn
Medical And Dental
Discover small business insurance for medical and dental professionals. Medical malpractice insurance is a type of professional liability policy that protects health care professionals from liability causing in bodily injury, medical expenses and property damage.
- Ambulatory Surgical Center
- Art Therapy
- Assisted Living Facilities
- Audiology
- Blood Banks
- Dental Lab
- Dental Office
- Diagnostic Imaging Centers
- Healthcare Facilities
- Home Medical Equipment Dealers
- Hospitals
- Hypnosis
- Malpractice
- Marriage & Family Therapy
- Medical Clinics
- Medical Laboratories
- Medical Marijuana Dispensary
- Medical Practice
- Medical, Surgical & Hospital Supply Store
- Mental Health Counseling
- Nurse
- Occupational Therapy
- Ophthalmologist
- Optician
- Optometrist
- Osteopathic Physicians
- Otolaryngologists
- Physicians Office
- Plastic Surgeons
- Podiatrists
- Prosthetists
- Psychology
- Psychiatrists
- Skilled Nursing Facility
- Speech Therapy
- Substance Abuse Counseling
- Surgeons
- Veterinarian
Miscellaneous
Find informative articles on miscellaneous businesses including the types of insurance policies and coverage they need, costs and other considerations.
- Adult Daycare Insurance
- Agriculture, Forestry, Fishing & Hunting
- Camp
- Bail Agent
- Cemetery
- Check Cashing
- Control of Well
- Currency Exchanges
- Electric Utilities
- Employment / Staffing Agency
- Enameling
- Engraving Business
- Facility Support Services
- Helicopter
- Logging
- Mail Order
- Marina
- Oil And Gas Lease
- Personal Concierge
- Photofinishing Lab
- Pollution
- Printers & Publishers
- Private Water Districts
- Process Server
- RV Parks & Campgrounds
- Security Guards
- Taxidermy
- Unmanned Aerial Vehicles (UAV) Drone
- Waste Disposal Landfill
- Wedding Planner
Non-Profit
Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.
- Animal Shelter & Pet Rescue
- Charity
- Church
- Classic & Collector Car Clubs
- Credit Union
- Fraternal Organization
- Goodwill Industries
- Labor Union
- Libraries
- Nonprofit
- Parent Teacher Organization
- Public Administration
- Red Cross Chapters
- Salvation Army
- Social Work Services
- Veterans Groups
- Volunteers of America
- YMCA
- Youth Groups
- YWCA
Professional Services
Get informed about professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your small business against claims that a professional service you provided caused your client financial loss.
- Accounting
- Answering Service
- Architects
- Armored Car
- Attorney Lawyer
- Auditor
- Bookkeeping
- Business Consulting
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Debt Collection Agency
- Detective Agency
- Draftsman
- Electrical Engineering
- Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- HR Consultant
- Insurance Agents & Brokers Insurance
- Interpreter
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Notary
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Stockbrokers
- Surveyor
- Temporary Staffing
- Tax Preparer
Real Estate
Learn about real estate insurance coverages including liability and commercial property policies for realtors, mortgage companies and more.
- Corporate Office
- Home Inspection
- Mortgage Broker
- Property Manager
- Real Estate Agents
- Real Estate Appraiser
Retail
Read valuable retail insurance policy information. In a retail business, you need to have the right type of business insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Antique Dealers
- Appliance & Electronics Store
- Art Gallery
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Clothing Store
- Collectibles Memorabilia Store
- Convenience Store
- Cosmetics Store
- Dry Cleaning
- Equipment Rental
- Florist
- Funeral Home
- Furniture Store
- Gift Store
- Hardware Store
- Home Improvement Store
- Hotel Motel
- Ice Cream Shop
- Jewelry Store
- Lingerie Store
- Luggage Store
- Music Store
- Newsstand
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Tuxedo And Formal Wear Rental Store
- Vape
- Vending Machine Operators
- Wig Store
Small Business Commercial Auto
Learn about commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Amazon Delivery Drivers
- Ambulance Services
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Charter And Tour Bus
- Commercial Auto
- Commercial Auto Liability
- Commercial Van
- DoorDash, GrubHub & Uber Eats Drivers
- Dump Truck
- Food Truck
- Freight Forwarder
- Household Goods Moving
- Limousine
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Tow Truck
- Truck
- What Does Commercial Auto Physical Damage Insurance Cover?
Small Business Insurance
Protect your company and employees with insurance coverage. Read informative articles on small business insurance policies - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- CGL
- Commercial Auto
- Commercial Crime
- Commercial Electric Vehicle Insurance
- Commercial Package Policy
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- Event Cancellation
- Fidelity Bonds
- Fiduciary Liability
- Garagekeepers
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- LLC
- Ocean Marine
- Professional Liability
- Self-Employed
- Surety Bonds
- Workers Compensation Insurance
Sports And Fitness
Learn about sports & fitness insurance policies and what they cover so that your customers, employees, and equipment are protected.
- Golf Course & Country Club
- Gym Fitness
- Hole-In-One Insurance
- Ice Skating Rinks
- Martial Arts
- Pilates
- Professional Sports
- Sports Team
- Swim Clubs
- Yoga Teacher
Warehouse And Storage
Learn about warehouse and storage insurance - which protects storage and warehouse facilities and protects their inventory from property damage from fire and weather, vandalism and theft and liability coverage as well.
Wholesale And Distribution
Read informative articles on wholesale distribution insurance. Distributors and wholesalers face specific risks including fire, flood and weather damage that can destroy products in the distribution center - and every part of the supply chain including late supplier shipments to unpaid invoices - can effect the entire operation.
- Air Conditioning And Heating
- Audio And Video Equipment
- Beer & Ale
- Beverage
- Cabinets
- Cameras & Musical Instruments
- Candy
- CDs, DVDs And Videos
- Clothing
- Coffee
- Confectioners
- Dairy Products
- Drugs
- Dry Goods
- Electrical Appliances
- Electrical Equipment
- Electrical Supplies
- Electronic Equipment
- Envelopes
- Extracts
- Food
- Fruit
- Fur
- Furniture
- Gifts
- Glassware
- Greeting Cards
- Grocers
- Hardware
- Importer & Exporter
- Jewelry
- Lamps
- Liquor Wholesaler
- Lumber
- Manufacturers Representative
- Meat
- Motion Picture
- Novelties
- Paint
- Petroleum
- Plate Glass
- Plumbing Supplies
- Restaurant Equipment
- Roofing Materials
- Rugs
- Seed Merchants
- Shoes
- Stationers
- Theatrical Supplies
- Tires
- Tools
- Toys
- Wallpaper
- Wholesale Florist
- Wholesaler Distributor
Small Business General Liability Insurance Information
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- CGL
- Commercial Auto
- Commercial Crime
- Commercial Electric Vehicle Insurance
- Commercial Package Policy
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- Event Cancellation
- Fiduciary Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- LLC
- Ocean Marine
- Professional Liability
- Self-Employed
- Workers Compensation Insurance
- Workers Compensation Insurance Laws

Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
Liability Insurance - The Bottom Line
Even if you are not legally obliged to have liability insurance, without it you are at risk of paying thousands if not millions of dollars in compensation and legal fees whenever suit is brought against you in court. This is in addition to the opportunity cost of lost time and resources when you are defending the allegations against you.
There are many listed liability insurance companies that can provide you with adequate liability cover for your business and profession. You need it sooner than later so that you can enjoy peace of mind as you focus on providing your customers with the best products and services and growing your business.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
Business Insurance Policy Type | What Is Covered? |
---|---|
General Liability Insurance | What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices. |
Workers Compensation Insurance | What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability. |
Product Liability Insurance | What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product. |
Commercial Property Insurance | What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead. |
Business Owners Policy (BOP) | What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance. |
Commercial Auto Insurance | What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident. |
Commercial Umbrella Policies | What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits. |
Liquor Liability Insurance | What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder. |
Professional Liability (Errors & Omissions) | What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating. |
Surety Bond | What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation). |
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- CGL
- Commercial Auto
- Commercial Crime
- Commercial Electric Vehicle Insurance
- Commercial Package Policy
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- Event Cancellation
- Fiduciary Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- LLC
- Ocean Marine
- Professional Liability
- Self-Employed
- Workers Compensation Insurance
- Workers Compensation Insurance Laws

Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.