Business Insurance
Find the right coverage for your business type and state.
Business insurance protects you from lawsuits, property damage, employee injuries, and professional errors. Most states require workers' compensation once you hire employees, and many clients and landlords require proof of general liability before signing a contract. Below you will find the main coverage types with average annual costs, plus links to state-specific requirements for each business type.
Insurance Types
General Liability Insurance
Covers third-party bodily injury and property damage claims against your business
Average annual cost: $400 - $1,500
Workers' Compensation Insurance
Covers employee injuries and illnesses that occur on the job
Average annual cost: $800 - $3,000
Surety Bond
Guarantees your business will fulfill contractual obligations to clients
Average annual cost: $100 - $500
Insurance by Business Type
How Business Insurance Works
Business insurance policies pay claims when a covered event occurs, such as a customer injury on your premises, property damage from a fire, or a lawsuit alleging professional negligence. You pay a monthly or annual premium, and the insurer covers claims up to your policy limits minus your deductible.
Most small businesses start with a Business Owner's Policy (BOP), which bundles general liability and property insurance at a lower cost than buying them separately. As your business grows, you may need additional coverage such as workers' compensation, commercial auto, or cyber liability insurance.
Insurance requirements vary significantly by state. Some states mandate specific coverage types or minimum policy limits for certain industries. Our state-by-state guides show you exactly what is required and recommended for your business type and location.
How to Choose the Right Coverage
Start by identifying the risks specific to your industry. Service-based businesses typically need professional liability coverage, while businesses with physical locations need property insurance. If you have employees, workers' compensation is required in nearly every state.
Compare quotes from at least three insurers before deciding. Look beyond the premium amount and consider coverage limits, deductibles, exclusions, and the insurer's claims handling reputation. Our business type guides include recommended coverage amounts and average costs to help you budget effectively.