What is Business Insurance?
Business insurance generally includes several types of policies designed to protect your business from financial losses due to accidents, lawsuits, property damage, and more.
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How Business Insurance Protects Your Livelihood
Business insurance is crucial in safeguarding your assets and income. It protects against unexpected events that could otherwise lead to significant financial losses. With the right coverage, you can focus on growing your business with peace of mind.
Who Needs Commercial Insurance Coverage?
Any business, regardless of size or industry, can benefit from commercial insurance. We recommend it for small business owners, whether you’re a sole proprietor, work with a partner, or manage a small team.
Is Business Insurance Required by Law?
While not all types of business insurance are legally required, certain policies, like workers’ compensation, are mandatory in most states if you have employees. Ensure compliance with local regulations and protect your business by understanding your legal obligations.
Types of Small Business Insurance Coverage
Business insurance usually refers to one or more coverages suited to your type of small business. Here are some options we often recommend and how they can help protect your small business:
Inland Marine
Financially protect the tools and equipment you use while in transport or on a job site.
Business Owner’s Policy (BOP)
General liability, property insurance, and more all in one convenient package.
Cyber
Provides coverage against claims associated with stolen customer data, cyberattacks, breaches, and fraud.
Errors & Omissions (E&O)
Coverage for claims or damage caused by errors or unintentional omissions from your work.
Business Personal Property
Coverage to replace or repair equipment, furniture, fixtures, and inventory that you own, use, or rent inside your workspace.
Tools & Equipment
Coverage to financially protect the tools and equipment you use while in transport or on a job site.
Sole Proprietors Workers’ Comp
Coverage that can provide workers’ comp benefits if an accident or an injury puts you out of action.
Wondering what coverage you might need?
How Much Does Business Insurance Cost?
Factors that influence your insurance premium.
Several factors affect your premium, including business size, industry, location, and claims history.
Average monthly costs by industry.
Explore typical insurance costs for your industry to better understand what you might pay.
How Much Does General Liability Insurance Cost?
Most of our customers pay less than $95 per month for general liability insurance. However, your final premium will depend on your industry, location, payroll size, and claims history. You can see median prices for specific types of business and specific states here.
How Much Does Workers’ Comp Insurance Cost?
The median cost for workers’ compensation insurance is $92 per month, or about $1,104 per year. However, your final premium will depend on your industry, location, payroll size, and claims history. While most of our customers pay under $150 per month, the price is tailored to your specific business. Get more details here.
How Much Does a Business Owner’s Policy Cost?
Most of our small business customers pay under $150 per month. However, the price is tailored to your specific business. You can see a list of the median monthly BOP premiums for our top trades here.
How Much Does Professional Liability Insurance Cost?
Most of our small business customers pay under $95 per month. However, the price is tailored for your specific business needs. We break down median costs by business type and state here.
You can see costs for other types of coverage right here.
How to Choose the Right Coverage for Your Business
Assess your business risks.
Identify potential risks specific to your business and select coverage that addresses these vulnerabilities.
Understand policy limits and deductibles.
Learn about policy limits and deductibles to ensure you have adequate coverage without overpaying.
Compare quotes from top-rated carriers.
Compare quotes from various insurers to find the best coverage at the most competitive price.
Why Compare Business Insurance with Simply Business?
The brokerage advantage: choice and transparency.
As a brokerage, Simply Business offers a wide range of options, ensuring you find the coverage that best fits your needs.
Instant certificates of insurance (COI).
With most policies, you’ll instantly get a free downloadable COI, proving your coverage and meeting contractual requirements.
What to Consider When Choosing Business Insurance
Find out what you need to know before you choose your coverage – All in just 60 seconds.
Small business insurance FAQs
What are some other situations that require business insurance?
Even when it’s not required by law, business insurance may be required for other business needs and operations, such as;
- Applying for licenses. Many regulatory, governmental, and other bodies require an active insurance policy to grant a license.
- Signing a lease. Your landlord may require you to have general liability insurance and commercial property insurance.
- Competing for contracts. Clients may require you to have professional liability insurance.
Is business insurance a legal requirement?
Laws vary by state, but it’s common for general liability insurance to be required for small business owners. Your free quote takes your location into account, and our licensed agents can help you determine your needs. If you have employees, you’ll need to have workers compensation coverage.
Can I change my policy after I buy it?
If you have questions about updating, renewing, canceling or changing your policy, you can find information in your online account. Or you can call one of our licensed insurance experts for help at 855-869-5183.
How long does it take to get a certificate of insurance?
You can get access to your certificate of insurance in minutes through your online account. Request a copy via email or download a digital COI instantly.
What does ‘General liability’ actually protect me from?
General liability (GL) insurance covers the costs of claims, medical bills, legal expenses, and more for your small business. It also helps cover your employee or employees if they cause the damage. Some of the things it typically covers include:
Faulty products
Third-party property damage
Third-party injuries
Advertising injury
Is my business insurance tax deductible?
Yes, you can typically deduct insurance premiums when filing their business income taxes. We strongly recommend talking to an accountant for more information about your state’s tax laws, though.
Do I need insurance if I work from home?
We recommend you have home-based business insurance. It’s a type of coverage that can typically help cover the costs of an unexpected accident, injury, or property damage. It’s designed to help cover your business if it’s primarily located within your home.
Because most traditional homeowners policies don’t cover incidents relating to a home business, it’s important to get additional coverage.
How do I file a business insurance claim?
Insurance claims are handled by your insurance carrier. Please contact them for the appropriate next steps. You can find a list of carriers and more information on our Insurance Claims page.
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We’ve helped insure more than 1 million small businesses, worldwide.
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Business insurance resources
Insuring small businesses is what we do, and we’re happy to share our expertise.
State guides for insurance
Find out what’s required in the state or states where you operate.
Our insurance providers
We work with top-rated insurers so we can offer you coverage, affordability, and choice.
Business guides and tools
Grow your business while you protect it. Check out these free business and insurance resources.
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