The most important business insurance coverages
Every business has different needs, but most should have these foundational coverages in place before they need them:
- General Liability (GL): Covers third-party bodily injury, property damage, and personal injury claims. Required by most commercial leases and client contracts. The baseline coverage every business needs.
- Business Owner's Policy (BOP): Bundles GL + commercial property at a discounted rate. Ideal for small to mid-size businesses with physical locations or equipment.
- Workers Compensation: Required in most states if you have employees. Covers medical costs and lost wages for work-related injuries. Protects both employees and employers from litigation.
- Professional Liability (E&O): Essential for service businesses and consultants. Covers claims that your work caused a financial loss to a client, even if you didn't make an error.
- Commercial Auto: Covers vehicles used for business purposes — personal auto policies exclude business use.
When to review your coverage
Review your commercial coverage annually, and whenever you: hire employees, acquire significant equipment, sign new contracts, expand to new locations, or change your business operations materially. Your coverage needs grow with your business.
