Commercial coverage · United States
Business Insurance
Business insurance is the set of commercial policies a US small operator buys separately from personal coverage: general liability, a business owner's policy, workers' compensation, and trade-specific lines. This hub routes solo contractors, consultants, and small crews to the coverage their work actually triggers — builders risk, professional liability, or cyber.
Coverage definitions come from the SBA and NAIC. Requirement rules are set state by state, so every rule here names the state and cites its own agency.
In this section
- Builders risk insurance
- Professional liability
- Cyber insurance
- Health cover once you hire
- Health cover with no employees
Find the coverage that matches your work
Three lines a one-person business actually gets asked for.
Builders risk insurance
Wave 4For contractors and owner-builders: covers the structure, materials and equipment while a project is under construction, before permanent property coverage begins.
Read the guideProfessional liability
For consultants, designers, agents and IT freelancers sued over advice, errors or missed deadlines — the exposure general liability deliberately leaves out.
Read the guideCyber insurance
For any solo operator holding client records or taking card payments: standard property and general liability policies exclude cyber losses entirely.
Read the guideHealth cover once you hire
Hiring your first employee: group and SHOP health rules, eligibility thresholds, and what changes once you run payroll.
Read the guideHealth cover with no employees
No employees yet? Individual-market health plans for owner-operators running the business alone, compared against group coverage.
Read the guideThe coverages, and what each one is actually for
The SBA lists six common types: general liability, product liability, professional liability, commercial property, home-based business coverage, and a business owner's policy. A BOP bundles property, liability and business interruption into one package — the Insurance Information Institute puts typical candidates at 100 employees or fewer and revenue up to about $5 million, with limits usually lower than standalone policies.
Trade-specific lines sit on top. Builders risk covers a structure during construction. Professional liability — errors and omissions, in NAIC's terms — covers negligent advice. Cyber is separate because, as NAIC puts it, most commercial property and general liability policies do not cover cyber risks at all.
Sources: SBA · III — business owner's policies · NAIC — cybersecurity
What the law requires, and what your contract requires
The SBA is direct that laws requiring insurance vary by state, and the variation is wider than most guides admit. California requires workers' compensation from the first employee under Labor Code section 3700, with criminal penalties for going without. Texas lets most private employers decline the coverage entirely, provided they report that choice to the state.
In practice, contracts drive more purchases than statutes do. General contractors, landlords and lenders ask for a certificate of insurance and additional-insured status long before any state agency does — which is why a solo operator often buys general liability to sign a job, not to satisfy a law.
Sources: SBA · California DIR · Texas Department of Insurance
FAQ
Common questions
Short answers here, sourced pages in the Answers Library.
Browse the Answers LibraryDo I need business insurance if I have an LLC?
Usually yes. The SBA notes an LLC or corporation can protect personal property from lawsuits, but that protection has limits. The entity shields your personal assets; the insurance policy pays the claim itself — legal defence, settlements, and damage to your own tools, inventory or job site.
Source: SBA
Is business insurance required by law?
It depends on your state and whether you have employees. The SBA states that laws requiring insurance vary by state. California requires workers' compensation from the first employee under Labor Code section 3700; Texas lets most private employers decline coverage entirely. Check your own state's agency.
Sources: California DIR · Texas Department of Insurance
What are the main types of business insurance?
The SBA lists six common types: general liability, product liability, professional liability, commercial property, home-based business coverage, and a business owner's policy. Employee-triggered coverages — workers' compensation, unemployment and disability — sit separately. Trade-specific lines such as builders risk and cyber are added on top.
Source: SBA
What is a business owner's policy (BOP)?
A BOP bundles property, general liability and business interruption coverage into one package. The Insurance Information Institute says companies with 100 employees or fewer and revenue up to about $5 million are typical candidates, and notes a BOP's coverage limits are usually lower than standalone policies.
Source: Insurance Information Institute
Does general liability insurance cover a data breach?
No. NAIC states that most commercial property and general liability policies do not cover cyber risks, and that cyber insurance policies are highly customised for clients. A solo operator storing client records or taking card payments needs a separate cyber policy.
Source: NAIC — cybersecurity
What insurance does a solo contractor with no employees need?
Most start with general liability, add commercial auto for a work vehicle, and add builders risk per project when a contract or lender requires coverage on the structure being built. Workers' compensation is triggered by employees and set state by state — check your state's workers' compensation agency.
Sources: SBA · NAIC glossary
Buy the coverage your work triggers, not a package.
A framer, a consultant and a bookkeeper need three different policies. Start with the line your contracts and your state actually ask for.
- Independent — we don't sell insurance
- No forms, no sales calls
- Sourced from NAIC & state DOIs