Start and protect
Business insurance
Which types of business insurance should you look at, and how do you buy them?
Six short steps. No email or account.
- Who needs it
- Every business with employees (workers' compensation is mandatory in nearly every state), anyone entering customer premises, anyone driving for work, and any professional giving advice for a fee.
- When it matters
- General liability before the first job on a customer site. Workers' compensation before the first employee's first shift.
- Compare first
- Coverage limits versus price
- Matters most when
- just started, established, growing, mature
Is this the right tool for you?
One claim, such as an injury on a job site, damaged property, a stolen van or a client saying your advice cost them money, can cost more than the business earns in a year. Insurance moves that risk off your balance sheet, but only if the policies match what you actually do and the limits match what customers and contracts require.
Signs you need it now
- A customer, landlord or general contractor has asked for a certificate of insurance.
- You are hiring your first employee and have not checked what your state requires.
- You use a personal vehicle or personal policy for business work.
- Your equipment, tools or stock would be expensive to replace after a theft or fire.
- You have added services since you last reviewed your cover.
When another area fits better
- The requirement is a license bond or permit, which your licensing authority sets. Read the licences and permits guide
Recognise two or more of these? Sort out business insurance next.
Tell us how your business runs and get a plan that puts business insurance in order with everything else: what to set up first, your must-haves and what to compare.
What matters at your size
Working alone
Start by asking an agent or broker about general liability, cover for your vehicle and tools, and professional liability if you give advice or design work. Contracts you sign may set minimums.
A small team
Employees bring workers' compensation, which most states require in some form, and raise questions about employee vehicles and theft. Review cover when headcount or services change.
Several teams or locations
Multiple locations, fleets and larger contracts bring umbrella cover, contract-specific limits and more detailed certificate requests. A broker who knows your industry becomes valuable.
How the way you work changes the choice
- Trades and crews at customer sites
- Liability for damage and injury on someone else's property, commercial auto, tools and equipment in transit, and workers' compensation. General contractors often require specific limits and wording.
- Shops and counter businesses
- Property and stock, customers on the premises, and loss of income if you have to close after damage. Your lease may set requirements.
- Professional and advisory firms
- Claims that your work or advice caused a loss are covered by professional liability, not general liability. Client data raises the question of cyber cover.
What to compare
Coverage limits versus price
Commercial customers and general contractors often set a minimum liability limit. Check what yours require before choosing on price.
Classification accuracy
A policy written for the wrong classification of work can leave you uncovered when you claim. Describe your work accurately.
Certificate turnaround
If clients demand a certificate of insurance, same-day issuance matters.
Licensed in your state
Insurance availability is state-by-state. Not every carrier writes everywhere.
Cost and setup effort
- Premiums depend on your trade, location, revenue, payroll, claims history and limits, so compare quotes on the same limits and exclusions, not just the headline price.
- Setup means gathering accurate details about what you do, revenue and staff. Understating work to lower a premium can leave a claim unpaid, so describe the business accurately.
- Ask how certificates are issued. If customers request them often, fast self-service certificates save real time.
Trade-offs to weigh
- Online direct or agent and broker
- Buying online is quick for simple, common risks. An agent or broker can compare markets and explain exclusions, which matters more as the business gets complex.
- Bundled or separate policies
- Package policies for small businesses can be simpler and cheaper, but check whether they leave out risks specific to your trade.
- Lower premium or lower deductible
- A higher deductible lowers the premium but means paying more yourself when something happens. Ask a professional what your cash reserves can absorb.
When to sort it out
General liability before the first job on a customer site. Workers' compensation before the first employee's first shift.
The covers most small businesses start with
General liability covers claims that your work injured someone or damaged their property. It is the policy customers, landlords and general contractors most often ask to see. Professional liability covers claims that your advice or service caused a financial loss, which matters more for consultants and anyone whose work is judgement rather than physical.
Workers' compensation covers employees injured on the job. Most states require it once you have employees, and the rules on who counts and when it starts vary by state. Commercial auto matters if vehicles are used for work: a personal auto policy may not cover business use, so check before a claim rather than after.
Certificates of insurance
In the trades, the everyday reality of insurance is the certificate: proof of cover that a customer or contractor asks for before you can start. If you are asked often, how quickly you can produce one matters as much as the price of the policy. Some insurers let you issue certificates yourself in minutes; others need a request to an agent.
Buying well
Describe your work accurately. Policies are priced and written for a classification of work, and a policy bought for the wrong classification can leave you uncovered for the job that actually goes wrong. Read the exclusions, not just the limits, and ask how a claim is made and who you would speak to.
Revisit cover when the business changes: your first employee, your first vehicle, a larger contract with its own insurance requirements, or new kinds of work.
Your next step
Answer six short questions about how your business runs. You get an operating plan: where business insurance fits among your priorities, the must-haves to hold every option to, and what to compare when you choose.
Where this comes first
Trades and businesses that usually sort this out early.
- Cleaning
- Landscaping and lawn care
- Plumbing
- HVAC
- Electrical
- Handyman and repair
- Pressure washing
- Mobile repair services
- Pest control
- Roofing
- Painting and decorating
- General contracting
- Specialty trade contracting
- Consulting
- Marketing agency
- Bookkeeping practice
- Accounting and tax practice
- Legal practice
- Independent professional
- IT services and managed service providers
- Staffing and recruiting
- Dental practice
- Medical and specialist practice
- Therapy and counselling
- Fitness and wellness
- Veterinary practice
- Salon, spa and barbering
- Restaurant and cafe
- Food truck and catering
- Lodging and short-term rental
- Retail shop
- eCommerce store
- Real estate brokerage
- Property management
- Auto repair and service
- Trucking and freight
- Manufacturing and production
- Wholesale and distribution
- Agriculture and field operations
- Childcare and early years
- Tutoring and training
- Photography and video
- Events and entertainment
- Software and technology
- Nonprofit and community organisation
- Something else
Often decided alongside
Other parts of start and protect.