Why business insurance matters
Business insurance reduces the financial impact of lawsuits, property damage, employee injuries, and cyber incidents. Coverage provides stability so businesses can recover and continue operations after adverse events.
Essential coverages
- General liability: Third-party injuries and property damage.
- Commercial property: Buildings, equipment, inventory.
- Workers' compensation: Medical and salary replacement for injured employees.
- Professional liability (E&O): Claims from professional services or advice.
- Cyber liability: Data breaches, ransomware, and response costs.
Business Owner’s Policy (BOP)
A BOP bundles general liability and property coverage, often including business interruption. For many small businesses this is cost-effective compared with buying standalone policies.
Cyber insurance basics
Cyber policies cover forensics, notification costs, legal, credit monitoring, and business interruption from data breaches or extortion. Risk management (MFA, backups, staff training) reduces premiums and claims likelihood.
FAQs
Is workers' comp mandatory?
In most states, yes — rules depend on headcount and industry.
How to choose limits?
Assess contracts, revenue, assets, and regulatory requirements; many SMBs start with $1M per occurrence GL limits.