Types of Business Insurance
General Liability Insurance
Protects your business against claims of bodily injury, property damage, and personal injury caused by your business operations, products, or employees. Required by most clients and landlords.
Business Owner's Policy (BOP)
Bundles general liability and commercial property insurance into one policy at a discounted rate. Designed for small to medium-sized businesses. The most cost-effective way to get comprehensive business coverage.
Professional Liability (E&O)
Protects businesses that provide professional services or advice against claims of negligence, mistakes, or failure to perform. Essential for consultants, accountants, lawyers, designers, and other service providers.
Top Business Insurance Providers
Hiscox specializes in small business insurance and offers tailored coverage for over 180 professions. Its fully online application makes getting a quote and binding coverage fast and straightforward.
✅ PROS
- Tailored for small businesses
- Fast online application
- Monthly payment available
⚠️ CONS
- Not ideal for large businesses
- Higher rates for high-risk industries
The Hartford consistently balances coverage depth, claims handling quality, and financial stability better than most competitors, with strong options across nearly every business type and size. A better fit than Hiscox once your business grows beyond a solo freelance operation.
✅ PROS
- Strong claims handling reputation
- Coverage for nearly every business type
- Scales well as your business grows
⚠️ CONS
- Some products require agent involvement
- Not the cheapest for solo freelancers
Average Business Insurance Costs
| Coverage Type | Typical Monthly Cost |
|---|---|
| General Liability | $30–$60/mo |
| Business Owner's Policy (BOP) | $50–$120/mo |
| Professional Liability (E&O) | $50–$100/mo |
How to Choose the Right Coverage
Start by listing your specific risks — client injuries on your premises, property loss, professional mistakes, or employee-related claims — then match each risk to the coverage that addresses it. Most small service businesses need general liability at minimum; a BOP bundles this with property coverage at a discount if you have a physical location. Consultants and advisors should prioritize professional liability, since general liability alone doesn't cover advice-based mistakes.
Frequently Asked Questions
Requirements vary by state and industry — workers' compensation is mandatory in most states once you have employees, and commercial auto is required if you use vehicles for business. General liability isn't always legally required but is frequently required by landlords and client contracts.
Yes — a Business Owner's Policy (BOP) bundles general liability and commercial property at a discount versus buying separately, and many insurers offer additional bundling discounts when combining BOP with workers' comp or commercial auto.
Yes, most insurers offer coverage tailored to home-based and remote businesses, though a standard homeowners policy won't cover business equipment or liability — a separate business policy or endorsement is needed.