Most small businesses are one lawsuit away from closing. The right business insurance costs less than you think and protects everything you have built.
Types of Business Insurance
General Liability Insurance covers bodily injury, property damage, and personal injury claims and is required by most commercial leases and client contracts. Professional Liability Insurance covers claims of negligence or errors in your professional services and is essential for consultants and service providers. A Business Owners Policy bundles general liability and commercial property into one discounted policy. Workers Compensation covers employee injuries and is legally required in most states once you hire employees.
Do LLCs Need Business Insurance
Yes. An LLC provides personal liability protection for company debts but does NOT protect you from claims of negligence, professional errors, or workplace injuries. A single customer slip-and-fall or a client suing for a missed deadline can result in judgments that pierce the corporate veil. General liability insurance is the minimum any LLC should carry and it costs $30 to $60 per month for most small businesses.
Business Insurance by Industry
Contractors and construction companies need general liability, commercial auto, and workers comp. Technology companies and consultants need professional liability and cyber liability. Restaurants and retail need general liability and commercial property. Medical practices need professional liability coverage. Real estate agents need errors and omissions coverage. The specific combination varies by your industry's risk profile.
How Much Business Insurance Costs
A general liability policy for a small business costs $400 to $750 per year or $33 to $63 per month. A Business Owners Policy averages $57 per month. Professional liability runs $60 to $150 per month depending on your industry and revenue. Workers compensation costs $1 to $2 per $100 of payroll in most industries.