Assess Business Risks
2-4 hoursIdentify liability exposures, property risks, employee needs, and industry-specific requirements (E&O, malpractice, cyber).
Advanced1-2 weeks
Business Insurance Setup
Free step-by-step business insurance setup for small business owners. Plan business insurance with calculators and checklists covering assess business risks.
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Workflow
Select Core Coverage
2-3 daysBundle general liability, commercial property, BOP (Business Owners Policy), workers comp (if employees), and cyber liability as needed.
Get Quotes
3-5 daysWork with independent commercial agent comparing 3+ carriers. Provide revenue, employee count, and claims history.
Review and Update
2-3 hours/yearUpdate coverage when hiring, expanding locations, adding services, or revenue grows 25%+. Review at renewal annually.
Tools Used
- Budget CalculatorPrimary
Budget annual insurance as 1-3% of revenue for most small businesses. · Compare quotes and fit premiums into operating budget.
- Umbrella Insurance CalculatorSupporting
Determine if commercial umbrella needed above GL limits.
- Disability Insurance CalculatorSupporting
Evaluate business overhead disability for owner income protection.
Checklist
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Assessment
Coverage
Legal
Documentation
Maintenance
Reference Materials
Small Business Insurance TypesTable
Core coverage types and typical annual costs for US small businesses.
| Coverage | Purpose | Typical Cost/Year | Required? |
|---|---|---|---|
| General liability | Third-party injury/damage | $400-$1,500 | Often by contract |
| Commercial property | Equipment, inventory | $500-$3,000 | If physical assets |
| Workers comp | Employee injuries | $0.75-$2.50/$100 payroll | Most states |
| Professional liability | Service errors | $500-$3,000 | By industry |
| Cyber liability | Data breaches | $500-$2,000 | Recommended |
BOP vs Separate PoliciesStandard
Business Owners Policy bundles general liability and commercial property for small businesses under $5M revenue. Saves 15-20% vs buying separately but may have coverage gaps for specialized needs.
Do Not Rely on Homeowners
Homeowners policies exclude business activity — a client injury at your home office is not covered without commercial GL.
BOP Saves Money
Business Owners Policy bundles GL and property at 15-20% less than separate policies for businesses under $5M revenue.
Cyber Is Underrated
Data breach average cost for small business is $120K — cyber liability at $500-$1,000/year is cheap protection.
Safety Notes
- Workers compensation is legally required in most states — operating without it exposes personal assets to employee injury lawsuits.
- Keep certificates of insurance current — expired COI can void client contracts and lease agreements.