Business insurance is not exciting until the moment you need it. At that moment, it is the difference between surviving a lawsuit, fire, or cyberattack and closing your business. Understanding what coverage you need—not just the minimum required—is one of the most important risk management decisions a small business owner makes.
General Liability Insurance
General liability insurance covers bodily injury and property damage claims arising from your business operations. If a customer trips and falls in your office, or your work damages a customer's property, general liability responds. Most businesses need at least $1M per occurrence and $2M aggregate in general liability coverage. This is often the minimum required by commercial landlords and many client contracts.
Professional Liability (E&O)
Professional liability (also called errors and omissions or E&O insurance) covers claims arising from professional services you provide. If a client claims your advice caused them financial harm, professional liability responds. Any business that provides professional services or advice should carry this coverage.
Key Takeaways
- General liability ($1M/$2M minimum) is the foundational coverage nearly every business needs.
- Professional liability is essential for any business providing professional services or advice.
- Cyber liability insurance is increasingly important—small businesses are disproportionately targeted.
