How to Get Business Insurance

When assessing whether you need business insurance, you need to break it out into two core categories:

• Business Insurance Requirements: What you are legally or contractually required to have to be compliant. Acts as your floor.
• Business Insurance Needs: What your company needs to be properly financially protected for common risks that come with the work you do.

Once you've narrowed down the coverage types you need, the clear next step is determining how much business insurance you need in terms of limits. Each coverage type works differently, so the decision should start at a required floor (if any) and scale with the magnitude of your day-to-day risk for what the policy covers.

Before making your decision, you need to know that limits fall into these categories:

• Per-Occurrence: This is your limit for each claim for an event that happens during the policy period. The limit applies to general liability and cyber insurance policies.
• Per-Claim: This is your limit for each claim you make within the policy period. Professional liability is the main policy you'll come across with this structure.
• Aggregate: Total per year limit you have covered under a policy, which is a part of almost every commercial insurance contract. Single-limit policies, such as a CSL (combined single limit) for auto insurance, operate only with this as a maximum.

A by-policy type heuristic is broken down below for coverages where limit decisions matter most. For any property-related policy, make sure you're covered for replacement costs on anything you own and use for work.

Having the proper documentation ready speeds up your business insurance application process and helps you get business insurance faster. 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.

Business 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 and service descriptions.
• Retail: Sales permits, inventory records and lease agreements.

Doing your research and comparing business insurance companies helps you find better coverage quality and claims experience. However, what is risk for you depends on what you value most at the stage your business is in.

• If you're just starting out and just need to meet requirements, we recommend looking for the cheapest small business insurance rather than fixating on service and coverage depth.
• Once you're growing, are more established and have employees, it is time to have a more balanced approach and find the best small business insurer that balances cost and service.

If you're in the second camp, when evaluating service, you can look into reviews on platforms like Trustpilot and Reddit, along with industry-level markers like NAICS complaint indexes and A.M. Best Ratings. You should also look into what tools they have available to manage your policy, set terms and how customer service interactions work with the company. 

Beyond this, when reviewing coverage, make sure a provider offers all or most of the coverages you need so you can take advantage of discounts and add-on options that apply to your specific operation.

Once you have your provider list set up, you need to make sure to compare business insurance quotes apples-to-apples, meaning with the same coverage. It is also a good idea to establish the average small-business insurance cost for your business profile so you know what a good deal looks like relative to the broader market, not just your set of insurers.

You can start building a baseline with our business insurance cost calculator below for a ballpark estimate. Click Get Quotes to get matched with a provider that fits the details you entered.

Take time to read through your policy documents before you buy. Going through the details now saves you from unpleasant discoveries later when you file a claim. Pay attention to these areas.

• Insurance coverage amount: 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.
• Business insurance deductible: Pick an amount you can afford to pay out of pocket during a claim. Don’t choose a high deductible just to save on premiums if you couldn’t comfortably cover it.
• Coverage exclusions: Review what your insurer won’t pay for, such as intentional acts, certain cyberattacks or specific natural disasters. If an excluded risk concerns you, ask about additional coverage.
• Business details: Double-check that your industry, location, revenue, employee count and payroll are accurate. Incorrect information can cause problems with your coverage or claims.
• Buying your business insurance policy: Once you’re satisfied with the policy, purchase it online, by phone or through an agent, then keep digital and physical copies somewhere safe and accessible.

Set a calendar reminder to review coverage before each renewal. Payroll changes, new equipment, added locations and higher-value contracts all shift your risk profile, and your policy needs to reflect them.