One of the most common questions business owners ask is simple: “What insurance do I actually need?”
The answer depends on your industry, business size, number of employees, and overall risk exposure. However, while every business is different, there are core insurance policies that nearly every business should strongly consider to protect itself from financial loss, legal claims, and unexpected events.
Understanding these coverages can help you avoid gaps, stay compliant, and operate with confidence.
Core Coverages Every Business Should Consider
General Liability Insurance
General Liability Insurance is the foundation of most business insurance plans. It protects your business from common risks that occur during everyday operations.
What it typically covers:
- Bodily injury to third parties
- Property damage caused by your business
- Legal defense costs and settlements
- Advertising and personal injury claims
Who needs it:
Almost every business — especially those that interact with customers, clients, vendors, or the public.
Why it matters:
A single accident, such as a customer slipping on your premises or damage caused during a job, can result in costly lawsuits. General liability helps prevent those situations from turning into financial disasters.
Professional Liability Insurance
Professional Liability Insurance (also known as Errors & Omissions insurance) protects businesses that provide services, advice, or expertise.
What it typically covers:
- Claims of negligence or mistakes
- Failure to deliver services as promised
- Misrepresentation or inaccurate advice
- Legal defense costs
Who needs it:
Consultants, professionals, service providers, agencies, contractors, and anyone whose work depends on expertise or recommendations.
Why it matters:
Even if you do everything right, clients can still claim financial loss due to your services. Professional liability protects your business from those claims.
Workers’ Compensation Insurance
Workers’ Compensation Insurance is required by law in most states once you hire employees.
What it typically covers:
- Medical expenses for work-related injuries
- Lost wages during recovery
- Disability benefits
- Employer legal protection
Who needs it:
Any business with employees (requirements vary by state).
Why it matters:
Without workers’ comp, an employee injury could lead to lawsuits, fines, and major financial strain. This coverage protects both your employees and your business.
Commercial Property Insurance
Commercial Property Insurance protects the physical assets your business relies on to operate.
What it typically covers:
- Buildings or office space
- Equipment and tools
- Inventory and supplies
- Furniture and fixtures
- Damage from fire, theft, or certain natural events
Who needs it:
Businesses that own or lease property, store inventory, or use equipment.
Why it matters:
Replacing damaged or stolen property out of pocket can be extremely expensive. Property coverage helps your business recover quickly after unexpected losses.
So… What Insurance Do You Actually Need?
The right coverage depends on:
- Your industry
- Number of employees
- Whether you offer services or physical products
- Your location and legal requirements
- Your risk tolerance
Some businesses need only a few core policies, while others require additional protection such as cyber liability, commercial auto, or umbrella coverage.
The key is not overpaying — and not being underinsured.
Get the Right Coverage Without Guesswork
Not sure which policies apply to your business?
Get a free insurance review today.
We’ll assess your business, identify potential risks, and recommend coverage that fits your needs — without pressure or confusion.
👉 Get a Free Insurance Review