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Small Business Startup Insurance Checklist

New businesses tend to either overbuy (sold by an aggressive broker) or underbuy (skipping coverage to save cash). Here's what's actually required.

Day-one coverage

  • General liability ($1M/$2M minimum)
  • Professional liability if you give advice (E&O)
  • Cyber liability if you handle customer data
  • Workers' comp the moment you have an employee (legally required in most states)
  • Commercial auto if any vehicle is used for business

If you have a physical location

  • Commercial property
  • Business interruption
  • Equipment breakdown
  • Outdoor signs
  • Inland marine for tools / inventory in transit

Industry-specific

  • Liquor liability (food/bev)
  • Garage keepers (auto-related)
  • Errors & omissions (consulting/tech)
  • Product liability (manufacturing/retail)
  • Employment practices liability (5+ employees)

What you can usually defer

  • Directors & officers (D&O) — until you raise outside capital
  • Key person life insurance — until revenue depends on one person
  • Crime / employee dishonesty — until you handle cash

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