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Summary of business insurance
Business insurance helps manage the financial impact of unexpected events, including lawsuits, property damage and accidents. Coverage may also extend to employees and business vehicles, with options that vary based on your business type, industry and risks.
Which types of business insurance are available?
Commercial auto insurance quotes
More business insurance quotes
What is business insurance?
Business insurance can help you manage the financial risks associated with running a company. Depending upon your policy, coverage may apply to expenses related to property damage, liability claims and resulting interruptions to your daily business operations.
What does business insurance typically cover?
Depending on your policy's specific coverages, business insurance can help protect your company from numerous risks and unexpected events, including:
- Bodily injury and property damage if your business is responsible for an accident that harms someone or damages their property
- Legal defense costs, settlements or judgments related to certain covered claims or lawsuits
- Business property damage caused by covered events such as fire, theft, vandalism or some weather-related incidents
- Lost income and extra expenses if a covered disruption temporarily interrupts your normal business operations
- Vehicle-related risks involving company-owned vehicles used for business
What is typically not covered by business insurance?
Basic policies can help protect your business from many risks, but they don't cover everything. Understanding common exclusions can help you plan for potential gaps in coverage.
Many business insurance policies do not cover:
- Intentional acts – Deliberate damage or harm
- Professional errors – Mistakes related to services or advice, unless you have errors and omissions (E&O) coverage
- Wear and tear – Damage from normal use or lack of maintenance
- Certain cyber risks – Data breaches or cyber incidents
Popular business insurance policies
General liability
Protect your company from claims like injury, client lawsuits and more.Commercial property
Helps protect your business if company property is damaged.Business Owners Policy
Property and liability coverage that's combined into one convenient package through ERGO NEXT.Commercial auto
Coverage designed to protect company vehicles and drivers.
More business insurance policy options
Need more protection? We've got you covered.
- Workers' compensation
Financial protection for you and your employees by covering work-related injuries or illnesses. - Business interruption
Recovers lost income and additional expenses resulting from a covered claim. - Employment practices liability
Reduces legal costs if your business is sued by an employee or contractor for discrimination, retaliation or wrongful termination. - Errors & omissions (E&O)
Also known as professional liability, an E&O policy can help cover legal expenses and settlements for certain types of lawsuits and claims if accused of errors, omissions, negligence or faulty advice. - Equipment breakdown
Takes care of expenses to repair or replace damaged or malfunctioning equipment after a covered incident. - Data compromise
To help your business bounce back in the event of a cyberattack, certain related costs can be covered, including credit monitoring services and legal fees. - Home-based insurance
Policies tailored to cover unexpected claims that may come with running a business out of your home.
How much does business insurance cost?
The cost of business insurance varies, depending upon the type of coverage you choose and the specific risks your business may face. In general, businesses can pay anywhere from hundreds to several thousand dollars per year per policy, with higher costs for more complex operations, larger organizations or higher-risk industries.
There are several factors that insurance providers evaluate when determining rates, including:
Industry
- Higher-risk industries like construction or manufacturing often have higher premiums
- Businesses in lower-risk industries like consulting or office-based services typically pay less
Business size
- Larger businesses with more employees typically have higher exposure to risk
- Smaller operations may require less coverage overall
Revenue
- Higher revenue generally increases potential liability and can lead to higher premiums
- Costs may vary based on state, local regulations and exposure to risks like weather or crime
Location
- Costs may vary based on state, local regulations and exposure to risks like weather or crime
Claims history
- Prior claims may increase premiums
- Businesses with fewer claims may qualify for lower rates
What kind of business insurance do I need?
As you evaluate coverage for your business, focus on three key areas. Your needs may evolve over time, so you can adjust coverage as your business grows or changes.
1. Business type
What does your business do?
- Retail businesses, contractors and professional service providers often face different risks
- The type of work you perform and the services you offer can help determine which coverages may be relevant
- Businesses that provide advice or services may consider professional liability coverage, while others may prioritize property or equipment protection
2. Risk exposure
Where might your business be exposed to risk?
- Businesses that interact with customers may consider general liability coverage for injuries or property damage
- If your business owns or uses vehicles, commercial auto coverage may be needed (personal policies typically don't apply)
- Businesses with employees may need coverage that helps protect against workplace injuries
3. Legal requirements
Are there insurance requirements that may apply to your business?
- Some coverages, like workers' compensation, may be required depending on your location and whether you have employees
- Contract requirements or leases may also require proof of certain types of coverage
- Requirements can vary by state and industry
Business insurance for small businesses
Business insurance can help protect small businesses from the financial strain and disruptions to daily operations caused by unexpected events.
Find out how the right coverage can make it easier to manage the impact of incidents involving company vehicles, customer claims and other risks associated with your business.
How to choose business insurance coverage
Start with these questions to match your coverage to the needs of your business.
1. What could go wrong? Identify the risks so you know what needs protecting.
- Customer injuries
- Property damage
- Errors in your work
2. What's required? Check the legal coverage requirements for your business.
- Workers' compensation (for employees)
- Industry or contract-related coverage
3. What covers the basics? First choose core protection to cover the essentials.
- General liability
- Property coverage
- Workers' compensation (if applicable)
- Professional liability (if applicable)
4. What else do you need? Add coverage to fill gaps in protection.
- Coverage based on how your business runs
- Protection for key assets and operations
5. When should you update? Review regularly to fill gaps as your business evolves.
- New employees
- New services or locations
- Business growth