Understanding how to get business insurance not only satisfies legal requirements, but it also provides financial protection. A 2024 survey by NEXT Insurance found that 29% of small business owners don't have coverage, but that doesn't mean insuring a business is complicated. We'll walk you through six steps to help you find the best business insurance.
How To Get Business Insurance
Updated: July 2, 2025
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Key Takeaways
Getting small business insurance involves assessing risks, determining coverage needs, comparing quotes and reviewing policy details.
Comparing limits, checking insurer ratings, reading reviews and matching industry-specific risks can help determine where to get business insurance.
Bundling policies, choosing higher deductibles and paying annually lead to more affordable business insurance premiums.
How to Get Business Insurance
Step 1: Assess Your Legal Requirements and Industry Risks
The process of how to get business insurance starts with understanding legal requirements and risks in your industry. Consider the following before buying coverage:
Federal mandates.
If you have employees, you need workers' comp (except in Texas and South Dakota, where it's optional), unemployment and disability insurance.
State-specific requirements.
Each state adds its own rules beyond federal requirements. Licensed professionals need professional liability insurance, businesses using vehicles need commercial auto coverage and the number of employees determines when you must start carrying workers' comp.
Industry liability risks.
Your business type determines your biggest risks. For example, restaurants worry about food contamination and customers slipping on wet floors, while construction companies face workplace accidents and expensive equipment damage.
Customer interaction level.
If customers visit your location regularly, you'll need general liability insurance. Think slip-and-fall incidents, property damage claims or someone getting hurt on your premises. High-traffic businesses face more exposure.
Business location.
Operating in commercial areas increases your liability exposure compared to home-based businesses. Your personal insurance won't cover business activities, so you'll need separate coverage even if you work from home.
Revenue and assets.
Higher revenue means you need larger coverage limits to protect what you've built. Valuable equipment, inventory and property all need adequate protection against theft, fire and natural disasters that could shut you down.
Professional licensing compliance.
In addition to basic coverage requirements, licensed professionals face additional compliance rules. Some states require proof of insurance to renew licenses, and certain professions must maintain minimum coverage amounts or face license suspension.
Step 2: Determine the Types of Business Insurance Policies You Need
Knowing the types of business insurance available helps you protect what matters most to your company. Each policy serves a specific purpose, and understanding your options makes it easier to build the right coverage for your business's risks.
Coverage | What it actually does | You'll need this if |
|---|---|---|
Pays for accidents involving customers, like someone slipping in your store or you accidentally damaging client property. Also covers your legal defense costs when you get sued. | You interact with customers anywhere, sell products or work at client locations. | |
Covers your employees' lost wages and medical bills when they get hurt on the job. Most states require this coverage by law if you have any employees. | You have any employees, even part-time ones. | |
Protects you when clients claim your work caused them financial losses through missed deadlines, errors or advice that didn't work out as expected. | You provide services, advice or expertise to clients. | |
Business Owner's Policy | Bundles liability, property and business interruption coverage into one package that's usually cheaper than buying each policy separately. | You want to save money by combining multiple policies instead of buying them individually. |
Commercial Property | Replaces your business equipment, inventory and workspace when they're damaged by fire, theft or storms. | You own expensive equipment or have valuable inventory. |
Commercial Auto | Covers accidents when you're driving for business purposes like deliveries, client visits or hauling equipment. Personal car insurance won't cover business use. | You store customer data, process payments or rely heavily on computers. |
Cyber Liability | Helps you recover from data breaches by paying for customer notifications and fixing your systems. Small businesses are common targets for hackers. | Don't feel like you need everything at once. Most businesses start with general liability and workers' comp (if you have employees), then add other coverage as they identify specific risks. |
Don't feel like you need everything at once. Most businesses start with general liability and workers' comp (if they have employees), then add other coverage as they identify specific risks.
Step 3: Gather Business Insurance Application Information
Having the proper documentation ready speeds up your business insurance application process. It also helps insurers assess risks to provide you with accurate quotes.
Some documents are universal. Regardless of your industry, you must present your registration papers, tax ID, financial statements, employee information, current business insurance policies and claims history.
Industry requirements vary:
- Restaurants: Food service licenses, liquor permits and equipment lists.
- Construction: Contractor licenses, safety documentation and equipment inventory.
- Professional services: Client contracts, certifications, service descriptions.
- Retail: Sales permits, inventory records, lease agreements.
Check with your insurer about specific documentation requirements for your industry to ensure complete applications.
Step 4: Compare Small Business Insurance Quotes
Getting multiple quotes for business insurance helps you find the best rates and coverage for your needs. Here's what small businesses typically pay for the most common types of coverage.
Coverage Type | Average monthly rate | Average annual rate |
|---|---|---|
$101 | $1,214 | |
$36 | $436 | |
$82 | $984 | |
Business Owner's Policy (BOP) | $147 | $1,764 |
How did we determine these rates?
These rates are from MoneyGeek’s analysis of quotes for small businesses with two employees across 79 major industries or business types and focused on general liability, workers’ compensation, professional liability and business owners’ policies.
Don't just compare prices. Review policy limits, deductibles, and exclusions to compare similar coverage levels. A cheaper policy might leave you underprotected when file a claim. Get quotes from at least three providers and ask about discounts for bundling policies, implementing safety programs or paying annually rather than monthly.
LEARN MORE ABOUT CHEAP BUSINESS INSURANCE
You don't need to go broke to have enough financial protection. Save money on business insurance by exploring these guides:
Step 5: Research and Compare Business Insurance Providers
Doing your research and comparing business insurance companies helps you find better coverage quality and claims experience. Our research included major insurance companies across multiple factors to identify the top-performing provider for different industries.
Top Business Insurance Providers by Industry
| Accountants | Chubb | 85 |
| Ad Agency | Chubb | 85 |
| Auto Repair | biBERK | 85 |
| Automotive | Coverdash | 85 |
| Bakery | Chubb | 86 |
| Barber | biBERK | 85 |
| Beauty Salon | Progressive Commercial | 82 |
| Bounce House | Thimble | 83 |
| Candle | Simply Business | 85 |
| Cannabis | Hiscox | 85 |
| Catering | biBERK | 85 |
| Cleaning | Hiscox | 83 |
| Coffee Shop | Thimble | 86 |
| Computer Programming | Chubb | 85 |
| Computer Repair | Nationwide | 86 |
| Construction | Coverdash | 85 |
| Consulting | Coverdash | 85 |
| Contractor | Hiscox | 83 |
| Courier | Chubb | 85 |
| DJ | Coverdash | 85 |
| Daycare | Thimble | 85 |
| Dental | Coverdash | 85 |
| Dog Grooming | Hiscox | 85 |
| Drone | Chubb | 85 |
| Ecommerce | Hiscox | 83 |
| Electrical | Hiscox | 83 |
| Engineering | Hiscox | 84 |
| Excavation | Simply Business | 85 |
| Florist | Hiscox | 83 |
| Food | biBERK | 85 |
| Food Truck | Nationwide | 86 |
| Funeral Home | Chubb | 85 |
| Gardening | Hiscox | 83 |
| HVAC | Progressive Commercial | 83 |
| Handyman | NEXT Insurance | 87 |
| Home-based | Coverdash | 85 |
| Home-based | NEXT Insurance | 96 |
| Home-based business | Chubb | 85 |
| Hospitality | biBERK | 85 |
| Janitorial | Hiscox | 83 |
| Jewelry | biBERK | 85 |
| Junk Removal | Hiscox | 83 |
| Lawn/Landscaping | Hiscox | 83 |
| Lawyers | Chubb | 85 |
| Manufacturing | Coverdash | 85 |
| Marine | Chubb | 85 |
| Massage | biBERK | 85 |
| Mortgage Broker | Chubb | 85 |
| Moving | biBERK | 85 |
| Nonprofit | Thimble | 84 |
| Painting | Hiscox | 83 |
| Party Rental | Simply Business | 85 |
| Personal Training | Thimble | 82 |
| Pest Control | Chubb | 85 |
| Pet | Coverdash | 85 |
| Pharmacy | biBERK | 85 |
| Photography | Coverdash | 85 |
| Physical Therapy | Chubb | 85 |
| Plumbing | Coverdash | 85 |
| Pressure Washing | Hiscox | 84 |
| Real Estate | Nationwide | 86 |
| Restaurant | Thimble | 85 |
| Retail | Progressive Commercial | 82 |
| Roofing | biBERK | 85 |
| Security | Simply Business | 85 |
| Snack Bars | Chubb | 85 |
| Software | Coverdash | 85 |
| Spa/Wellness | Thimble | 84 |
| Speech Therapist | Chubb | 85 |
| Startup | Thimble | 85 |
| Tech/IT | Coverdash | 85 |
| Transportation | Chubb | 85 |
| Travel | Coverdash | 85 |
| Tree Service | Simply Business | 85 |
| Trucking | Chubb | 85 |
| Tutoring | Coverdash | 85 |
| Veterinary | Chubb | 85 |
| Wedding Planning | Coverdash | 85 |
| Welding | Thimble | 83 |
| Wholesale | Chubb | 85 |
| Window Cleaning | Hiscox | 86 |
To find the best business insurance companies for you, look for financially strong insurers who can pay claims when needed. Check their AM Best rating (A- or higher is good) and read customer reviews about their claims process. Don't just pick the cheapest option. You want reliable coverage that protects your business when something goes wrong.
Step 6: Review Business Insurance Policy Details and Purchase
Before finalizing your business insurance purchase, carefully review all policy documents to ensure the coverage matches your needs. The extra effort will protect you from surprises when you file a claim. Key areas to review are:
- 1
Coverage limits.
Make sure you have enough protection for your actual risks. For example, a consulting firm handling million-dollar projects needs more than $100,000 in professional liability coverage.
- 2
Deductibles.
Pick amounts you can afford to pay out of pocket when you're dealing with a stressful situation. Don't choose a high deductible to save on premiums if you can't cover it during a claim.
- 3
Exclusions.
This section lists what your insurer won't pay for. Things like intentional acts, certain cyberattacks or specific natural disasters often aren't covered. If something concerns you, ask about additional coverage.
- 4
Business details.
Double-check that everything matches your business, like your industry type, location, revenue, employee count and payroll. Inaccurate information can void your coverage when you need it most.
- 5
Buying and keeping records.
When you're satisfied with everything, purchase online, by phone or through your agent. Store both digital and physical copies somewhere safe but accessible.
Once you’re covered, set an annual reminder to review it before renewing. Your business will change, and your insurance should keep up with it.
How to Get Small Business Insurance: Bottom Line
If you want to know how to get business insurance, start by assessing your risks to see what coverage you need, then compare quotes from at least three providers. Focus on finding insurers with strong ratings and industry expertise rather than just chasing the lowest price. Bundle policies and choose higher deductibles to keep your premiums affordable.
How to Get Insurance for a Business: FAQ
We've addressed the most frequently asked questions about how to get business insurance:
How much does business insurance cost?
Business insurance costs vary widely depending on your industry and what coverage you need. Small businesses typically pay around $101 monthly for general liability, $36 for workers' comp and $147 for a business owner's policy. Getting personalized quotes from multiple providers will give you the most accurate pricing for your situation.
What types of business insurance does my business need?
Most businesses start with general liability insurance to protect against customer accidents and property damage claims. You'll want to add workers' compensation if you have employees, professional liability for service-based businesses and commercial auto if you use vehicles for work. A business owner's policy can help you bundle coverage at lower costs.
How can you compare quotes from different insurance providers?
Start by comparing coverage limits, deductibles and exclusions to ensure similar protection levels. Then, check the insurer's financial strength through AM Best ratings (A or higher is good). Don't just pick the cheapest option because inadequate coverage will fail you when you need it most. For example, a policy that saves you $500 per year isn't worth it if it leaves you with a $50,000 gap when you need to file a claim.
What documents do I need to apply for business insurance?
You'll need basic business documents like registration papers, tax ID and financial statements. Industry-specific businesses need additional documentation. For example, restaurants need food service licenses, contractors need safety records and professionals need certifications.
Which types of business insurance are legally required?
Federal law requires workers' compensation (except in Texas and South Dakota), unemployment and disability insurance if you have employees. State requirements can vary a bit. Licensed professionals like doctors and contractors often need professional liability insurance to maintain their licenses. Check with your state insurance department for your specific requirements.
How do I assess my business's insurance risks?
Start by thinking about your customer interaction level and industry-specific risks. Restaurants face food contamination claims, while contractors deal with workplace accidents. You'll also want to assess valuable assets like equipment and inventory that need protection from theft, fire or natural disasters.
Does my business structure affect my insurance needs?
Yes, your business structure directly impacts what insurance you need. Sole proprietors have unlimited personal liability, so ensure you have enough coverage to protect your assets. LLCs and corporations provide some protection, but you'll still need business insurance to cover the gaps. It's worth consulting both legal and insurance professionals.
How can I reduce my business insurance premiums?
Try bundling multiple policies with one insurer for package discounts. You can also choose higher deductibles if you're comfortable with larger out-of-pocket costs during claims. Paying annually instead of monthly helps you avoid processing fees, and implementing safety programs can qualify you for additional discounts.
What should I do immediately after starting my business to get insured?
Get general liability insurance before your first customer walks through the door because you're exposed to claims from day one. Since most states require it, you'll also need to set up workers' compensation before hiring employees. Make sure to keep your business and personal insurance completely separate.
How do I manage my business insurance after purchase?
Set up annual reminders to review your coverage and update your insurer whenever you hire employees, move locations or add new services. Keep your policy documents stored somewhere secure but accessible. It's smart to contact your agent before renewal time to discuss any coverage changes and see what discounts might be available.
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How We Chose the Best Small Business Insurance Companies
We analyzed thousands of quotes across 79 industries to identify which insurers offer the best combination of affordability, service and comprehensive coverage.
Here's how we evaluated each company:
- Affordability (50% of our analysis): We compared actual quotes for a typical small business (two employees, $300,000 revenue) across general liability, professional liability, workers' comp and business owner's policies.
- Customer experience (30%): We looked at J.D. Power ratings, state insurance department complaints and real customer reviews to understand how companies handle claims and customer service.
- Coverage options (15%): We evaluated each company's offering of different coverage types and whether they can grow with your business needs.
- Financial strength (5%): We checked AM Best and Moody's ratings to ensure these companies can actually pay claims when you need them.
Why this approach works for you: Instead of just listing the cheapest options, our analysis identifies insurers that balance cost with quality service and comprehensive protection.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT Insurance. "90% Of Small Business Owners Aren’t Confident That They Are Adequately Insured, According To Survey.." Accessed July 2, 2025.