Starting or growing a small business is exciting—but it also comes with risks. One accident, lawsuit, or unexpected event can throw your entire operation off track if you’re not properly insured.
That’s why having the right insurance coverage in place is so important. And yet, many business owners don’t know what they need until it’s too late.
Whether you’re just getting started or reviewing your existing policies, this small business insurance checklist will help ensure you’re protected from the most common (and costly) risks.
1. General Liability Insurance
This is the foundation of small business coverage. It protects you if someone is injured on your property or if your business causes damage to someone else’s property.
Covers:
- Slip-and-fall accidents
- Property damage claims
- Legal fees from third-party lawsuits
Most landlords and clients require this before working with you.
2. Commercial Property Insurance
Even if you work from home, property insurance is essential if you own or lease a space, equipment, or inventory.
Covers:
- Damage from fire, theft, vandalism, and natural disasters
- Business equipment, furniture, and inventory
- Loss of income during a covered event
3. Business Owner’s Policy (BOP)
A BOP bundles general liability and commercial property insurance into one convenient policy. It’s usually more affordable than buying them separately.
Ideal for: Small to mid-sized businesses that want broad coverage with cost savings.
4. Workers’ Compensation Insurance
If you have employees (even just one), most states require you to carry workers’ comp. It helps cover medical costs and lost wages if an employee is injured on the job.
Covers:
- On-the-job injuries
- Rehabilitation services
- Legal defense if you're sued over a workplace injury
5. Commercial Auto Insurance
If your business uses vehicles—for deliveries, client meetings, or hauling equipment—you need a commercial policy. Personal auto insurance won’t cover business use.
Covers:
- Vehicle damage
- Medical bills
- Liability for accidents caused by your business vehicle
6. Professional Liability Insurance (E&O)
If your business provides advice or services, this coverage protects you from lawsuits related to errors, omissions, or negligence.
Essential for:
- Consultants
- Accountants
- Marketing agencies
- Financial advisors
7. Cyber Liability Insurance
With data breaches and cyberattacks on the rise, this policy is becoming essential—even for small businesses.
Covers:
- Hacking or ransomware attacks
- Legal and notification costs
- Stolen customer data
8. Key Person or Business Life Insurance
What happens if a business partner or key employee passes away? Business life insurance helps you:
- Keep the business running
- Buy out a partner’s shares
- Protect your family or co-owners
EJC specializes in buy-sell agreements and key man insurance to keep your business secure through any life event.
9. Umbrella Liability Insurance
An umbrella policy gives you extra liability protection beyond your base coverage. It’s especially useful if:
- You work with high-profile clients
- You have a public-facing storefront
- You want to safeguard your personal assets from business-related claims
Bonus: Industry-Specific Coverage
Your business may need specialized coverage based on your field. At EJC, we help businesses in industries like:
- Medical and wellness
- Retail and restaurants
- Construction and trades
- Real estate and legal
- Personal training, physical therapy, and more
We’ll make sure nothing slips through the cracks.
How EJC Insurance & Financial Can Help
Insurance shouldn’t be confusing, or an afterthought. At EJC, we help small business owners across the country protect what they’ve worked so hard to build.
We offer:
- Customized policies tailored to your business
- Bundled coverage options to save you money
- Clear explanations and proactive risk advice
- Full integration with your financial planning if you’re a business owner
We don’t just sell policies. We become a trusted partner in your success.
FAQ’s
1. Do I need all of these insurance policies for my small business?
Not necessarily. The right coverage depends on your industry, number of employees, and risk exposure. We’ll help you decide what’s essential.
2. How much does small business insurance cost?
Costs vary by business size and type. Most small businesses pay $500–$2,000 annually for core coverage.
3. Is a BOP better than buying separate policies?
A Business Owner’s Policy can offer better value if you need both property and liability coverage.
4. What happens if I don’t have business insurance?
Without it, you may be personally liable for accidents, lawsuits, or losses. One major claim could bankrupt your business.
5. Can I write off insurance premiums on my taxes?
In many cases, yes. Insurance premiums are typically tax-deductible business expenses—but check with your accountant.
