What Insurance Do You Need for a Small Business?

Do I Need Business Insurance? Most small businesses will need a business owner’s policy (BOP). A BOP combines business property, business liability and business income insurance in one policy. Commercial property insurance, sometimes called business property insurance, helps protect the physical location of your business and business assets.

General liability insurance, sometimes called commercial liability insurance, helps cover the costs of liability claims made against your business. For example, if a customer were to trip and injure himself on your business property, he could bring a lawsuit against your company. Business liability insurance can help cover the costs of that claim.

Business income insurance helps replace lost income when your business can’t operate due to a covered loss. This is a great way to help ensure you can keep paying your bills, payroll, and ride out the temporary suspension of your business. For example, let’s say a fire damages your business and it’s closed during repairs. Business income insurance can help replace the lost income while repairs are being made.

There are also several instances where certain states require business insurance coverage. In most states, businesses with employees need: