1. General liability
Pays for third-party bodily injury, property damage, and advertising injury. Required by most commercial leases and many client contracts.
2. Professional liability (E&O)
Covers claims that your professional advice or service caused financial harm. Essential for consultants, agencies, and licensed pros.
3. Workers' compensation
Mandatory in nearly every state once you have employees. Pays medical and lost wages for work injuries.
4. Business owners policy (BOP)
Bundles GL, property, and business interruption — usually 10–15% cheaper than buying separately.
Key takeaways
- GL is foundational; most clients require it.
- E&O matters for any advice-driven service.
- Workers' comp is mandatory once you hire.
- BOPs save money for typical small businesses.
This article is for general educational purposes and is not legal, financial, or insurance advice. Consult a licensed professional for decisions specific to your situation.