What is small business insurance?

Small business insurance protects you and your business from financial loss, including on-site accidents, property damage or any other unexpected bumps along the way. Think of small business insurance as a safety net that protects the assets, property and income of your business. The most common policy is a Business Owners Policy (BOP) that offers basic coverage types, including property, general liability and business interruption.

What does small business insurance cover?

A Business Owners Policy (BOP) combines multiple coverages that help protect businesses and their owners into one convenient business insurance policy.
  • Property insurance

    Provides valuable protection for property owned by your business.
  • Liability insurance

    Helps cover legal expenses due to customer injuries and other liability claims.
  • Business interruption insurance

    Helps cover lost income and extra expenses resulting from a covered claim.
  • Equipment breakdown coverage

    Helps pay to repair equipment damaged by a power surge or other covered risk.

start protecting your business today

Allstate Business Insurance agents can help you learn more about BOPs and other coverage options. Get started today.

Get business insurance designed for your small business

Each industry brings its own set of risks and insurance needs. Protect your small business with custom coverage from Allstate.

Do I need small business insurance?

In most cases. Small business insurance helps protect your investment. You'll have peace of mind knowing you're covered from unforeseen events, including property damage or financial losses.

  • Small business insurance can protect your business from:
  • Fire
  • Customer injury
  • Damage from weather events, like flooding or high winds
  • Employee theft

How to cover small business insurance gaps

Stay on top of your business insurance by learning what's covered and what isn't. Some accidents aren't covered by standard business insurance, including:

  • Floods
  • Earthquakes
  • Water backups

Floods, earthquakes and water/sewer backups are typically excluded from business owners insurance. Ask your agent about policies you can add to help cover damage from these events.

Need more protection for your small business?

If you need extra coverage, you may be able to purchase add-ons to your Allstate Business Insurance policy or as a separate policy. Coverages may not be available in all states and limits may vary.

Available as add-ons to a policy

Other types of protection you can purchase
Look under "Coverage" on your policy declarations
Outdoor signs
Covers outdoor signs your business owns and has installed at its location.
Data compromise and identity theft protection
Data compromise protection provides resources to help you comply with breach notification laws and assists with defense and settlement costs if you are sued following a breach of personal information.

Identity recovery protection provides a dedicated help line for support and case management for identity theft victims.
Employee dishonesty
Helps cover damages resulting from dishonest acts committed by your employees.
Home-based business
Protects businesses that are run out of your home and gives coverages for off-premises activities, as well as credit card coverage.
Cyber attacks
Helps cover losses related to a cyber attack on your business's computer system, such as damage to your data and system, cyber extortion and computer fraud.
Shield endorsements
Provide a set of valuable coverages tailored to your type of business. For example, a shield endorsement can help protect equipment that is specific to your business, such as increased coverage for valuable records for doctors and dentists.
Inland marine insurance
Helps cover business property while it's being transported by truck or train. It can provide greater protection for high-value items or property that's not covered by a standard business insurance policy.

Separate policies you can purchase

Other types of insurance you can purchase
Look for these policies in a separate mailing
Flood insurance
Your Allstate agent can help you purchase a separate policy through the National Flood Insurance Program.
Umbrella policy
If someone sues you over an accident, and the settlement exceeds the liability limits on your business owners insurance policy and/or business auto policy, this coverage can help cover the additional expenses.
Commercial auto
If your business vehicle is damaged in an accident, or an employee is found liable for a car accident while on the job, commercial auto insurance can help cover related expenses.

Small business insurance FAQs

Still need help?