Business insurance basics
What business insurance is, how a policy works and what you’re required to carry.
12 articles
Newest first
Do you need business insurance for a side business?
Often, yes, and sooner than most people think. A homeowners or renters policy usually leaves business liability and most business property out, your day job’s insurance doesn’t follow you home, and the first client contract or market application you sign may require proof of coverage.
Insurance basics7 min readHow to switch business insurance without a gap
Get the new policy bound before you cancel anything, start it on the exact day the old one ends, and keep your retroactive date on any claims-made coverage. Then send new certificates to everyone who holds the old one.
Insurance basics9 min readIs business insurance tax deductible?
In most cases, yes. The IRS says you can generally deduct premiums for insurance related to your business, such as liability, property and workers’ comp, as long as the expense is ordinary and necessary, but some premiums don’t qualify. Confirm your own situation with a tax professional.
Insurance basics8 min read
What business insurance does a small business need?
Most small businesses start with general liability, then add policies for what they own, the work they do and the people they employ. The right mix depends on your risks, your state and what your lease and contracts require.
Insurance basics13 min read
Business insurance for sole proprietors
A sole proprietorship has no legal wall between you and the business, so a claim against the business is a claim against your own savings. Most sole proprietors start with general liability or professional liability, and add policies for the gear they own and any contracts they sign.
Insurance basics8 min readDoes an LLC need business insurance?
Usually, yes. Forming an LLC can keep the business’s debts and lawsuits away from your personal assets in most cases, but it doesn’t protect the business itself. When the LLC is sued, its own money and equipment are what’s at stake, and insurance is what can help pay.
Insurance basics9 min read
Does homeowners insurance cover a home business?
Usually only a little. Homeowners and renters policies often limit coverage for business equipment and typically exclude liability for business activities, so a client’s fall or a stolen work laptop may not be covered.
Insurance basics9 min read
How business insurance works: premiums, limits and deductibles
You pay a premium, and for a set policy period the insurer agrees to help pay for covered losses, up to your limits and after your deductible. Exclusions, conditions and endorsements decide what counts as covered.
Insurance basics10 min read
How to get business insurance, step by step
Work out which policies your business and your contracts call for, gather the details an underwriter will ask about, get quotes you can compare on equal terms, then bind coverage and send proof to whoever asked for it.
Insurance basics9 min readHow to read a business insurance policy
Start with the declarations page, which shows who and what is insured, for when and for how much. Then read the insuring agreement, definitions, exclusions, conditions and endorsements, because together they decide whether a loss is covered.
Insurance basics10 min read
Is business insurance required by law?
Some of it is. Nearly all states require workers’ comp once you have employees, vehicles need auto liability, and some trade licenses require insurance or a bond. General liability usually isn’t required by law, but leases and client contracts often make it a condition.
Insurance basics10 min readOccurrence vs. claims-made policies
An occurrence policy covers injury or damage that happens while the policy is in force, whenever the claim arrives. A claims-made policy covers claims reported while it’s in force, for incidents after its retroactive date, which matters most when you switch insurers or close.
Insurance basics9 min read
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A quote takes about five minutes, and your certificate is ready the day you buy.