What Is Small Business Insurance?

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What Is Small Business Insurance and What Does it Cover?

What is small business insurance? If you’re looking for the small business insurance definition, we can help. Also known as commercial insurance, small business insurance is designed to safeguard the company you’ve worked so hard to build. It helps protect your business against bodily injury or property damage.
 

What Is Considered Small Business Insurance?

One of the most common types of business insurance is a Business Owner’s Policy (BOP). It includes coverage from:
 
  • General liability insurance
  • Business income insurance
  • Commercial property insurance

What Does Small Business Insurance Cover?

Small business insurance definition Small business insurance can help cover claims that your business hurt someone or damaged another person’s property. It can also help protect your business’ equipment and income.
 
This type of insurance can help protect your business if:
 
  • A customer slips and falls at your business property
  • An employee accidentally puts a hole in a wall while working at a customer’s home
  • Your employee falls and gets hurt while making a delivery

What Insurance Do You Need for a Small Business?

Many business owners wonder, “What insurance do you need for a small business?” A BOP is not only convenient, it can also help you save money. In addition to the coverage in a BOP, many small business owners need other types of general liability insurance, including:
 
  • Workers’ compensation insurance
  • Professional liability insurance
  • Data breach insurance
Learn more about the types of business insurance many small business owners need:
 

General Liability Insurance

General liability insurance helps protect your business from claims of:
 
  • Property damage to someone else’s belongings
  • Bodily injury to another person while on your business property
  • Personal injury, like defamation or libel

Business Income Insurance

Business income insurance helps replace your lost income if you can’t operate because of covered property damage. This coverage is also known as business interruption insurance.
 

Commercial Property Insurance

Commercial property insurance helps protect the owned or rented building and equipment you use to operate your business. It can also help repair or replace business property if a fire, theft or other covered loss damages or destroys it.
 

Additional Coverages for Small Businesses

You can help protect your small business with other types of business insurance, such as:
 
To learn more about the liability coverage you need to protect your business from financial loss, get a quote today.
 

Common Questions About Small Business Insurance

Are Small Businesses Required To Have Insurance?

If you have employees, you’ll need workers’ compensation insurance. Most states may also require:
 

What Does Small Business Insurance Cost?

Small business insurance costs vary depending on the type of company. That’s because every small business is unique. Some factors that determine the cost of your small business insurance include your company’s:
 
  • Size
  • Experience
  • Industry risk
  • Payroll

Why Do Small Businesses Need Insurance?

business insurance definition As a small business owner, you may be wondering, “Is it illegal to run a business without insurance?” You should check the laws where you live, because every state has different rules and regulations. If you don’t comply with those laws, your business may face fines and penalties. And in some cases, you can also face criminal charges.
 
Without insurance to protect your business, you’ll also have to pay for claims out of pocket. Not many small business owners have the resources to cover costly claims.
 
To learn more about the benefits of business liability insurance, get a quote today.
 

We Support Small Business Owners

We know there are a lot of insurance companies out there, but not all of them are dedicated to small businesses. We have more than 200 years of experience and a dedicated team of specialists to help small business owners get the coverage they need. From lost income and medical expenses to car accidents, we can help you every step of the way. Get a small business insurance quote today.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
 
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