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Business Insurance

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Small Business Insurance Customized for You

You worked hard to build your business. To help keep it running smoothly, Simply Business offers an easy way to get small business insurance to protect it.

Here’s how it works: Compare free quotes from top insurers and pick the exact coverage you want. With just a few clicks, you can get insured in under 10 minutes, so you can get back to running your business.

Plus, monthly payment options make it easier to find coverage that fits your budget.

Ready to get started? Just answer a few easy questions to help find the right policies for you.

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What is Business Insurance?

What Is Business Insurance?

Business insurance - also called "commercial insurance" - refers to the range of coverage that a business owner can buy to protect against losses and liabilities.

From general liability coverage and workers compensation to professional liability policies, this coverage is designed with one goal in mind: to protect you while you focus on running and growing your business.

Without this crucial protection, you could be leaving your business vulnerable to unexpected costs associated with accidents, property damage, mistakes, and injuries.

And if the worst happens, those costs could be catastrophic to your dream of running your own business. Consider this: The most expensive claim is reputational damage, which could cost your business an average of $50,000 if you don’t have insurance coverage.

That means if a customer were to accuse one of your employees of spreading misinformation about them or sues you for slander, your business could be put in a serious financial hole. Even the most common claim — burglary and theft — averages about $8,000.

For most small businesses, that $8,000 could be significant enough to put them out of business...

Unless they have insurance coverage.

Why Do I Need Commercial Insurance?

As soon as you decide to start a business, you may need commercial insurance. Without this coverage, you’re leaving yourself — and possibly your family and personal property — financially vulnerable to any damages, accidents, or injuries that happen throughout the course of doing business.

Need more convincing? Here are a few more reasons why you need business coverage:

  • It can help you get more customers, contracts, and projects, as many people won’t work with you if you’re not insured.

  • It can prevent you from paying out of pocket for claims and lawsuits that potentially could put you out of business.

  • It can protect your full-time and part-time employees while they work for you, as they may be covered in the event of an injury or accident.

  • It may cover your tools and equipment if they’re lost or stolen.

  • It can help you stay on the right side of the law, as most cities and states require proof of business coverage in order to run a business.

  • It can meet legal requirements if you want to rent or lease a space for your business.

  • It covers any accidents or damages that happen in your home office (that’s right — your homeowners’ insurance doesn’t cover business-related incidents).

Don’t put your business or your personal assets at risk; commercial insurance can protect you, your family, and your employees.

Read our FAQ for more info: Do I need business insurance?

What Does Commercial Insurance Cover?

Commercial insurance coverage can be tailored to cover specific risks to your company. For example, if you’re a self-employed landscaper with no employees, your commercial insurance may include general liability insurance and coverage for your tools.

If, however, you’re an accountant with two employees, you'll likely want your policies to include professional liability coverage (to protect against mistakes) and workers compensation insurance.

No matter which type of coverage you need, the end goal is the same: to provide you with comprehensive protection against the most common risks you face while running your business.

Types of Business Insurance

Types of Business Coverage

No two businesses are the same - and that's why there are so many different types of insurance policies. Each policy is designed to work with one another to form a comprehensive umbrella of protection for your business's exact needs.

Let's take a closer look at the most common small business insurance policies, including what they cover and how they work.

General liability insurance: foundational business insurance

General liability (GL) insurance — which is also referred to as commercial general liability (CGL) insurance — covers costs associated with third-party accidents, property damage, and bodily injury. Without this type of coverage, your business may be responsible for those costs.

GL insurance is a foundational policy for businesses who do a lot of work on third-party properties. For example, if you're a contractor who remodels homes, general liability coverage could keep you and your employees protected in case your work caused property damage or an accident.

General liability insurance typically covers:

  • Bodily injury to another person
  • Third-party property damage
  • Personal and advertising injury
  • Medical expenses
  • And more

GL insurance usually doesn’t cover:

  • Damage to your own property
  • Professional services
  • Workers compensation or injury to your employees
  • Damage to your work
  • Automobiles while in business use
  • Expected or intentional injury or damage

Learn more about general liability insurance.

Professional liability insurance: protection from negligence

Professional Liability insurance provides coverage in the event a customer claims that you were negligent in providing your professional services.

For example, let's say you're a tax preparation specialist and you make a mistake on your client's tax return, causing them to owe more money than they should. The client discovers this mistake and hires someone else to fix it, as well as a tax attorney to deal with the IRS.

The client decides to sue you for these expenses, as they had to spend money as a result of your mistakes.

In this scenario, your professional liability insurance policy may cover any damages and legal costs that you might be ordered to pay as a result of your negligence.

You can expect professional liability insurance to cover:

  • Negligence or alleged negligence
  • The cost of hiring a lawyer
  • Omissions or alleged omissions
  • Claims and damages
  • And more

Keep in mind, it usually doesn’t cover:

  • Intentional negligence
  • Bodily injury
  • Property damage
  • False advertising
  • Patents and trade secrets
  • And more

Learn more about professional liability insurance.

Home based business insurance: covering what homeowners insurance won't

Home based business coverage is a type of insurance 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 insurance doesn’t cover incidents relating to a home business, it’s important to get additional coverage.

So if you operate your business from your home, you need additional home based business insurance. You can’t count on your homeowners policy to protect your business.

Home based business insurance featuring a general liability policy can usually cover:

  • Bodily injury to another person (like a client or vendor)
  • Third-party property damage
  • Personal and advertising injury
  • Medical expenses
  • And more

Here’s what home based business insurance usually doesn’t cover:

  • Damage to your own property
  • Professional services
  • Workers compensation or injury to your employees
  • Damage to your work
  • Motor vehicles while in business use
  • Expected or intentional injury or damage
  • And more

Learn more about home based business insurance.

Errors & omissions insurance: protection from unintentional mistakes

E&O insurance — also known as errors & omissions insurance — covers the costs of legal claims or alleged damage caused to a customer by errors or unintentional omissions from your work (hence, the “errors and omissions” title).

This term is often used interchangeably with professional liability insurance, and for the most part, they’re identical.

The small difference between them is that professional liability insurance is generally considered to be more of an umbrella product that covers a wider range of needs, and errors & omissions insurance is part of that umbrella coverage.

For a quick summary, E&O insurance usually covers:

  • Mistakes or alleged mistakes
  • Legal defense costs
  • Omissions or alleged omissions
  • Claims and damages
  • And more

E&O insurance does not cover:

  • Intentional mistakes and omissions
  • Property damage
  • Medical expenses
  • Bodily injury
  • And more

Workers compensation: business insurance for your employees

Workers compensation insurance covers the costs of lost wages, medical bills, rehabilitation expenses, and even death benefits when employees are hurt on the job. Carrying workers compensation can provide much-needed security, as having this coverage in place prevents an employee from suing your business for workplace injuries.

More specifically, workers comp can cover:

  • Medical Payments
  • Lost Wages
  • Rehabilitation expenses
  • Death Benefits

Workers compensation insurance does not cover:

  • Client or vendor accidents
  • OSHA fines
  • Work safety improvements
  • Wages for a worker who replaces the injured employee

Learn more about workers compensation insurance.

The world of commercial insurance can be confusing and complicated. But we know you didn’t start your business to spend your valuable time trying to figure out what coverage you need.

That’s why we’re here to help.

Read our FAQ for more info: What type of business insurance do I need?

Just answer a few questions about your business to see what kind of coverage you may need.

Building Your Small Business Insurance Policy

Here's How We Can Help You Find Your Policy

You can get business coverage right here through Simply Business! Whether you know exactly what coverage you’re looking for or you’ll need a little help, we’re here to make the process a lot easier.

You can get quotes from top insurance providers through our quote form, or you can give us a call to talk to a licensed insurance agent.

No matter which option you choose, it’s our goal to provide you with the right insurance for your business.

Before starting your free quote, make sure you have the following information at hand so we can build the right coverage for you:

  • Your industry or trade
  • Your location
  • Number of employees
  • If you sell a product or offer a service
  • If you work on third-party properties
  • And more

Is Business Insurance Tax Deductible?

Is Business Insurance Tax Deductible?

Good news: Typically, you can deduct both ordinary and necessary insurance costs. That means your insurance premiums could be tax deductible, provided you have specific coverage.

We recommend talking to a certified tax preparer or accountant for more information on how to deduct your insurance premiums when filing your annual taxes.

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*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated reinsurance carrier by A.M. Best. Harborway Insurance is a trade name of Simply Business, Inc., which is a licensed insurance producer in all 50 states and the District of Columbia.

© Copyright 2020 Simply Business. All Rights Reserved. Simply Business, Inc. is a licensed insurance producer in all U.S. States and the District of Columbia. Simply Business has its registered office at Simply Business, 1 Beacon Street, 15th Floor, Boston, MA, 02108. In the state of California, we operate under the name Simply Business Insurance Agency, Inc., License #0M20593. In the state of New York we operate under the name Simply Business Insurance Agency. In the state of Texas we operate under the name, U.S. Simply Business, Inc. For more information, please refer to our Privacy Policy and Terms & Conditions.