A guide to small business insurance needs
Starting a business is no small feat and you've worked hard to get where you are. Now it's time to protect what you've built. That's why you need a policy you can tailor to your small business insurance needs.
At Progressive Commercial, we specialize in helping small companies like yours safeguard their operations, assets, and future. Talk to one of our agents or start a quote today.
Why insurance is essential for small businesses
Insurance gives your business an important financial safety net. It helps you manage risk and protect your assets when unexpected issues come up. It can give you confidence in tough situations, knowing you have the support to handle them.
Insurance is also part of running a responsible business. Customers and communities often count on you to operate safely and take care of them if something goes wrong. Proper coverage helps you protect the people who rely on your work.
What small business insurance is required?
Small business insurance requirements vary, depending on the type of work you do and your industry. In some situations, specific coverages must be carried to meet legal guidelines.
For example, if you have employees, you'll probably need workers' compensation insurance to protect them in case of on-the-job injuries. And companies that rely on vehicles will usually need commercial auto insurance to help with work-related accidents.
You may also need general liability or professional liability insurance to meet licensing rules, industry standards, or client contracts. Progressive Commercial makes it easy to customize a policy so you can stay protected and meet requirements.
Who needs small business insurance?
Whether you're a sole proprietor or you run an LLC with a big team, it's a good idea to protect the things that keep your business running. If you interact with customers, sell products, or handle data, specific types of business insurance can give you the coverage you need. We work with a wide range of professions, including:
- Contractors
- Consultants
- Food trucks
- Carpenters
- Personal trainers
- Caterers
- Retailers
- Landscapers
- Real estate agents
- Barbers
What should I consider when choosing coverage?
To help you think though your company's needs, ask business insurance questions like:
- Do I own or lease my company space?
- Do I use vehicles in my day-to-day operations?
- What challenges are most common in professions like mine?
- Who do I need to protect, such as customers, vendors, and employees?
- Do I handle private customer information?
- What coverages do I need to be industry compliant?
You don't have to figure it out alone. Progressive Commercial can guide you through the process and recommend solutions that fit your unique needs.
What business insurance do I need?
Small businesses often benefit from a mix of coverages. Consider these common types of insurance needed for small businesses.
General liability (GL)
General liability insurance protects against bodily injury claims, like if someone slips and falls at your business. It can also cover third-party property damage and personal and advertising injury, including claims of libel, slander, and copyright infringement.
Learn how GL can benefit your small business.
Business owners policy (BOP)
A business owners policy packages liability with commercial property insurance for buildings, furniture, computers, and equipment. It also includes business interruption coverage, which helps replace lost revenue if you can't work due to a covered event like theft or vandalism.
You can customize your BOP by adding options like tools and equipment insurance. Learn more about BOP coverages to see how this policy can help your business.
Workers' compensation
If you have employees, most states will require you to carry workers' comp insurance. This coverage helps workers who get injured or sick because of their job. It can help pay for medical expenses, rehabilitation, and lost income. The employers liability protection on this policy can also shield you from lawsuits. Find out more about your state's workers' comp rules.
Commercial auto
If your business travels between locations or delivers goods, you'll probably need commercial auto insurance. As America's #1 commercial auto insurer,* Progressive Commercial has you covered. At their core, these policies protect other people on the road if you cause an accident. But you can also customize them with additional commercial auto coverages for your vehicles, drivers, and passengers.
Professional liability
Professional liability insurance supports businesses that provide advice or services, such as accounting firms and law offices. If a client claims you were negligent, it can help cover legal fees, defense costs, and settlements.
Cyber
IT specialists, accountants, and other companies that handle sensitive data may benefit from cyber insurance. It pays to restore and recover compromised information and can help with lost income if your operations are interrupted by a cyber incident.
Start with the core coverages
New business owners usually start with protections like general liability, a BOP, and workers' comp. As your company grows and your needs change, you can add coverage for things like tools and equipment, machinery breakdown, food spoilage, and more.
How much does small business insurance cost?
Business insurance costs depend on the coverages you choose and the risks you face. When determining your rate, insurers consider factors like:
- Business size
- Industry
- Location
- Coverage limits
- Insurance deductibles
- Claims history
To better understand how much business insurance you need and what you can expect to pay, start a customized quote.
Common questions about insuring small businesses
Do I need insurance as a freelancer or independent contractor?
In many cases, yes. Some clients require independent contractors and freelancers to have liability coverage. Depending on your work, this could include general liability, professional liability, or both. Even if it's not required, you should still consider getting a small business insurance policy to help manage common claims.
What insurance do I need for a home-based business?
It depends on the work you do. If customers visit your home, you keep business items there, or you have anyone helping you, insurance might be a good idea. Without it, you may have to pay out of pocket if something goes wrong.
Learn more about insuring a home business.
What happens if I don't have small business insurance?
If you don't have small business insurance, you're missing out on valuable protection. The right policy helps safeguard your finances so you can bounce back from covered events, like customer accidents, hailstorms, or employee mistakes. It can give you peace of mind so you can focus on running your company.
Why choose Progressive Commercial to protect your small business
For over 50 years, small businesses nationwide have trusted Progressive Commercial to provide customized coverages. You can explore our online resources, compare options, or work with an insurance expert to find a policy that's right for your business. Start a quote today.
