You probably have insurance for your car, your home, your health—and even your life. So why not your business?

Starting and running a business involves risk, and while it may not be fun to talk about what could go wrong, one of the smartest things you can do is protect what you’ve built. Business insurance exists to minimize risk and protect you from potential loss caused by events that may occur during day-to-day operations.

Start Here: Ask the Right Questions

Before choosing a provider or policy, it’s important to take inventory of what your business actually needs. Ask yourself:

• What assets does my business own?

• Where do I operate from—home, office, retail, etc.?

• What products or services do I offer?

• Who do I employ (contractors, W2 employees, remote workers)?

These answers will help narrow down the type of coverage you need.

Choosing the Right Insurance Company

Not all insurance companies—or policies—are created equal. When evaluating providers, look for:

• Industry experience: Work with a company that understands the unique risks of your specific field.

• Liability coverage: Make sure the policy covers your actual services or products.

• Asset protection: Don’t stop at liability—include coverage for theft, damage, or loss of income.

• Scalability: Choose a company that can grow with your business.

• Trustworthiness: You’ve put in the time and capital—choose a provider that will actually show up when you need them.

Types of Business Insurance

There’s a wide range of business insurance policies available. Here’s a breakdown of the most common ones, and what they cover:

• Business Owner’s Policy (BOP)

A bundled package that usually includes property insurance, liability insurance, vehicle coverage, crime protection, and business interruption insurance. Great for small businesses that want broad coverage in one plan.

• General Liability Insurance

Covers your business from legal claims involving bodily injury, property damage, or personal injury. Every business should have this.

• Product Liability Insurance

If you manufacture, wholesale, or sell products, this protects you from claims related to product defects.

• Professional Liability Insurance

Also known as Errors and Omissions Insurance. This covers you against claims of negligence, malpractice, or professional errors.

• Commercial Property Insurance

Protects buildings, equipment, and inventory. Policies can be:

• • All-risk: Covers all types of loss unless specifically excluded.

  • Peril-specific: Covers only losses listed in the policy (like fire or flood).

Also includes business interruption insurance, which helps if you have to temporarily shut down operations.

• Home-Based Business Insurance

Standard homeowner’s insurance doesn’t cover business activities. You’ll need to add special coverage to protect your work-from-home operations.

• Commercial Auto Insurance

Covers vehicles used for business, including those transporting goods, equipment, or people. You may also need non-owned auto liability if employees drive personal vehicles for work.

• Workers’ Compensation

Legally required in all states for W-2 employees. Covers medical expenses and lost wages for work-related injuries. Not having it can lead to heavy penalties.

• Directors and Officers Insurance (D&O)

Protects your company’s leadership from personal liability arising from decisions that affect the business.

• Data Breach Insurance

Covers legal and financial damages resulting from the loss of sensitive client or employee data.

• Business Umbrella Insurance

Acts as backup coverage when your other insurance policies reach their limit. It can also cover things not typically included in standard plans.

Final Word: Risk is Inevitable. Being Unprotected is Optional.

Your business is more than a brand—it’s a long-term investment. Make sure it’s protected from the unexpected. Taking the time to explore your options, assess your needs, and select the right plan is one of the most proactive steps you can take as a business owner.