Small Business Insurance
Protect your business from unexpected risks with small business insurance. Whether it’s liability, property damage, or employee coverage, the right policy keeps your business secure. Get customized quotes and find the best coverage for your needs today!
Choose the right coverage from trusted insurance providers.
What is small business insurance?
Running a small business comes with unexpected challenges, and having the right insurance is crucial. It’s designed to protect businesses like yours from financial loss.
Whether you need to comply with state laws, rent an office, or sign a contract with a client, insurance provides security. Different policies help recover from disasters like fires and storms, while others pay for lawsuits from customers or employees.
Comprehensive coverage also includes protection against auto accidents, theft, data breaches, and other risks. Even if it’s not required, carrying a policy is always a good idea, as unexpected costs from legal expenses, medical bills, or claims can easily overwhelm a small business.
Top small business insurance policies
No single insurance policy can protect against every risk. However, commercial insurance helps cover different problems like accidents, lawsuits, and other unexpected events that may affect a business. These policies focus on the most common threats businesses face.
Business owner’s policy
A Business Owner’s Policy (BOP) combines property coverage and general liability insurance in one affordable plan, making it a cost-effective choice for businesses.
Under this plan
Customer injuries
Business interruption incidents
Accidental damage to customer property
General liability insurance
General liability insurance protects against common business risks like injuries, customer property damage, and advertising claims. It is often required for commercial leases.
Under this plan
Slip-and-fall accidents
Damaged customer property
Libel and slander lawsuits
Workers’ compensation insurance
Workers’ compensation insurance is required in most states for businesses with employees. It also helps sole proprietors cover work-related injury costs that health insurance may not.
Under this plan
Employee medical expenses
Disability benefits
Workplace injury lawsuits
Commercial auto insurance
Commercial auto insurance is required in most states for business vehicles. It covers legal costs, accidents, theft, and vandalism.
Under this plan
Car accidents
Vandalism and theft
Weather damage
Professional liability insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers legal expenses if a business faces a negligence lawsuit.
Under this plan
Mistakes and oversights
Undelivered work or services
Advice that causes financial loss
Commercial property insurance
Commercial property insurance protects a business’s building, inventory, equipment, and furniture from damage or loss.
Under this plan
Fire
Vandalism and theft
Windstorms
Errors and omissions insurance
Errors and omissions (E&O) insurance, also known as professional liability insurance, covers legal costs for work-related mistakes in professional services.
Under this plan
Missed deadlines
Errors in calculations
Misrepresentation
Cyber insurance
Cyber insurance helps businesses recover from data breaches and cyberattacks, making it essential for those handling customer information.
Under this plan
Data breach investigations
Customer notification expenses
Fraud monitoring services
Commercial umbrella insurance
Commercial umbrella insurance extends coverage beyond policy limits, enhancing general liability and other liability protections.
Under this plan
Accidents that injure customers
Multi-vehicle auto accidents
Negligence in workplace safety
How much does small business insurance cost?
Small businesses, especially low-risk ones, can get discounted insurance. On average, policies cost:
- General liability insurance – $42/month
- Professional liability insurance – $61/month
- Workers’ comp – $45/month
Costs depend on factors like industry risk, business operations, location, employees, policy limits, and claims history.
How do I get small business insurance?
Eagle Nation, the leading digital business insurance agency, offers a streamlined process to help you find affordable coverage tailored to your specific risks.
Getting small business insurance is quick and easy. Follow these three steps:
- Fill out a free application with basic business details.
- Compare custom quotes from top providers.
- Choose a policy and pay online.
Trusted insurers like The Hartford, Liberty Mutual, and Nationwide offer coverage tailored to your business risks at competitive rates.
Two ways to start your coverage
Quotes online
Talk to an agent
Verified business insurance reviews
Hear from customers like you who purchased insurance.
FAQs about small business
Small business insurance generally falls into two main categories:
- Business liability insurance covers legal costs if your business is held responsible for injury, property damage, or financial loss. It helps with expenses like attorney fees, court costs, and settlements.
- Commercial property insurance helps cover losses from theft, fires, storms, or vandalism, including damage to your building, equipment, and inventory.
- A business owner’s policy (BOP) is a cost-effective option that bundles general liability and property insurance, offering broad protection. Keep in mind, that personal insurance like home, health, or auto policies typically don’t cover business-related risks.
Business insurance is essential for protecting your company from unexpected risks. Here’s why you need coverage:
- Lawsuits are costly – Accidents can lead to expensive legal fees, medical bills, and property damage claims. Insurance helps cover these costs.
- State requirements – Most states require workers' compensation for employees and commercial auto insurance for business-owned vehicles.
- Leases, loans, and contracts – Many landlords, lenders, and clients ask for proof of insurance before working with you.
- Licensing requirements – Some professions, like contractors and real estate agents, need liability or errors and omissions insurance to get licensed.
Your business structure determines which insurance policies you need. Small businesses have fewer resources to handle lawsuits and accidents, making coverage essential.
- Businesses with a board of directors need D&O insurance, which protects board members from lawsuits over business decisions.
- Sole proprietors using personal vehicles for work may require HNOA insurance, which covers accidents in leased, rented, or personal cars used for business.
Independent contractors often need a certificate of insurance, as clients may require proof of general liability or workers’ compensation coverage before hiring.
Many small businesses are both bonded and insured, meaning they have a bond as a financial guarantee along with insurance coverage. A bond ensures your business completes a project as promised and may be required for contracts, project bids, or licenses.
Common Types of Bonds:
- Surety bonds – Guarantee contract fulfillment.
- Fidelity bonds – Protect clients from employee theft or fraud.
- License & permit bonds – Required for certain business licenses.
- Janitorial bonds – Cover theft by cleaning staff.
- Construction bonds – Include bid, performance, and payment bonds.
If your business fails to meet a contract, the bond reimburses the client, but unlike insurance, you must repay the bond issuer for the amount covered.
Yes! Our licensed agents cover all 50 states and Washington, D.C, and can help you meet state-specific insurance requirements.
Common Required Coverages:
- Workers' compensation – Mandatory in most states (except Texas & South Dakota) for businesses with employees.
- Commercial auto insurance – Required for business-owned vehicles in most states (except New Hampshire).
- Professional liability (E&O) – Required for professionals like real estate agents, lawyers, and insurance agents.
- Medical malpractice – A specialized liability policy often required for doctors.
- General liability – Needed for licensing in some trades, such as general contractors in California.
Not sure what coverage you need? Our agents can guide you and ensure you meet your state’s legal requirements.
Report any incident to your insurer immediately. Simply call your provider and provide:
- A description of the incident
- Your business name & policy number
An agent will guide you, answer questions, and send the required paperwork.
Check our FAQ section for details on coverage options. For personalized guidance, contact a licensed agent to:
- Find the right coverage
- Compare insurance quotes
- Get insured within 48 hours
Eagle Nation made finding small business insurance super easy! Their licensed agents guided me through the process, helped me choose the right coverage, and I got my policy within 24 hours. Highly recommend!