Business is the money tree to a home. Learn more about “How Can I Safeguard My Minor Company In 2025?”
Just as homeowners insurance protects you and your property from potential loss, business insurance helps safeguard the assets of your company and reduces the risk of financial setbacks. Most insurers that specialize in small business insurance offer various types of policies to suit companies of any size, whether you’re a solo entrepreneur or have a larger team.
Below, we cover typical forms of a company insurance and explain whether may be most useful for the small company you operate.
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How Can I safeguard My Minor Company In 2025?
Key Points to Remember:
- All businesses should consider some form of small business insurance, from a basic business owner’s policy to a more comprehensive package.
- Each type of business insurance addresses specific needs and may be more appropriate for certain business models.
- The expense of small company insurance varies on criteria such as firm size, assets, and particular coverage demands.
What is small business insurance?
Small company insurance protects organizations from liabilities due to accidents, litigation, natural catastrophes, and other unanticipated occurrences that might damage the business. Although the legal structure of your business helps protect personal assets, the main purpose of small business insurance is to cover the company’s assets.
In some cases, businesses are legally required to carry certain types of insurance. For example, if your business has employees, federal law requires you to provide disability, unemployment, and workers’ compensation insurance (except in Texas). Individual states may have additional requirements as well.
How Much Business Insurance is Necessary?
The amount of coverage you’ll need depends on your business’s nature and size. State regulations may also impact the types of insurance required. Typically, a Business the proprietor’s Policy (BOP) is an excellent starting point. This policy combines general liability and property insurance, offering broader protection than either would individually. Additionally, bundling these coverages often provides cost savings.
However, depending on the nature of your business, a BOP alone might not be sufficient. Other coverage options, though not legally required, could be crucial for the long-term security of your business.
Does an LLC Need Business Insurance?
While an LLC protects personal assets, which is especially valuable for homeowners, the company’s assets are still exposed to risk. Therefore, having business insurance is important for protecting your business assets against potential liabilities.
Top Providers for Small Business Insurance
Several leading insurers offer products specifically for small businesses in addition to traditional lines like home and auto insurance. Following are some of top ideas to consider.
Progressive
Pros:
- Progressive underwrites its commercial vehicle insurance, covering various types of vehicles like cars, vans, and trucks.
- Claims for commercial auto insurance are handled directly through Progressive.
Cons:
- All other small business policies, such as BOP, General Liability, Professional Liability, and Workers’ Compensation, are underwritten by affiliated partners. Claims for these policies must be processed through the underwriting company.
Chubb
Pros:
- Business Owner’s Policies (BOPs) include business interruption coverage, which is unique for this type of policy.
- Chubb insures businesses with up to $30 million in annual revenue.
- Policies and claims are managed directly through Chubb.
Cons:
- Online quotes are only available for businesses generating less than $1 million in annual revenue; higher-revenue businesses must contact an agent.
NEXT Insurance
Pros:
- NEXT concentrates only on small company insurance and offers specialist plans including liquor liability, machinery, and product liability coverage.
- Provides customizable policy bundles with a 10% discount for multiple products.
- Online claims and digital insurance certificates offer convenient access.
Cons:
- Some specific types of business insurance are not available.
Hiscox
Pros:
- Hiscox specializes in commercial insurance, offering online quotes for general liability, professional liability, and BOP policies.
Cons:
- The insurance for commercial property is only offered within a BOP; it can’t be purchased independently.
- Partners with third-party insurers for additional options like short-term liability, medical malpractice, workers’ compensation, and more.
Running a Business from Home: Insurance Considerations
There are various insurance options for those who operate businesses from home. Many small businesses, especially post-COVID-19, are home-based or exclusively online, so it’s essential to have the right coverage.
For purely online businesses, adding an endorsement to your existing homeowners insurance may meet your needs. This is often suitable for businesses like legal consultancies or freelancing services provided by graphic designers or writers. This endorsement typically protects business property, such as computers, and may cover personal liability or business interruption, depending on the type.
However, if your business involves customer visits—such as a daycare or in-home massage therapy practice—an endorsement may not offer sufficient coverage. In these cases, a standalone commercial insurance policy is recommended to ensure complete protection.
