Running a small business means juggling a lot: serving customers, managing finances, and keeping your daily operations on track. Small business insurance helps protect everything you’ve worked hard to build by covering financial losses that could result from accidents, lawsuits, property damage, and more.
Because every business has unique risks, small business owners often need a combination of insurance policies to stay protected. Below, we walk through what small business insurance covers, the most common types of policies, whether coverage is required, what you can expect to pay, and how Berxi can help.
Small business insurance isn’t a single type of insurance, but rather a number of different kinds of insurance small business owners must choose from to protect their business. These types of insurance are designed to protect your company from financial losses caused by unexpected events like mistakes, injuries, and property damage.
Because there are different types of small business insurance policies, including general liability, cyber insurance, and professional liability, the coverage each policy provides is different. Since one insurance policy can’t cover every type of risk, most small business owners carry multiple types of small business insurance.
For example, a business might need general liability insurance to cover slip‑and‑fall accidents, professional liability insurance to cover mistakes in the services it provides, and business personal property insurance to protect equipment and inventory.
You might insurance companies use the terms “first-party insurance” and “third-party insurance,” so it’s helpful to understand what they mean in the context of small business insurance:
Most businesses need a mix of both types of insurance.
The right small business insurance coverage for you depends on your industry, the size of your business, your revenue, and your day‑to‑day operations. Below are the most common types of insurance that small business owners should consider, including the three that Berxi offers: general liability, professional liability, and business personal property insurance.
General liability insurance — sometimes called business or commercial liability insurance — covers claims made by third parties that arise from your normal business operations. This includes:
In short, general liability insurance helps protect your small business from some of the most common risks small businesses face. It can cover costs such as legal fees, medical bills, and settlements if someone claims your business caused them harm.
This coverage is essential for many industries, including healthcare, retail, beauty and wellness, consulting, cleaning services, landscaping, and others that interact with customers and clients.
Professional liability insurance protects you against claims that your professional services caused financial loss, harm, or injury. This category includes:
Professional liability insurance can help cover legal defense, settlements, and judgments if a client or patient accuses you of making a mistake, providing incorrect advice, or failing to perform your work as expected.
For example:
Even if you’re baselessly accused of making a mistake, if a client decides to get their lawyer involved, you’ll need to hire a lawyer too. And whether or not you end up being at fault, legal counsel to defend you will likely cost thousands of dollars. That’s why anyone who provides professional services — like consultants, real estate agents, financial professionals, creatives, healthcare providers, and other licensed professionals — should consider this coverage essential.
Business personal property (BPP) insurance protects the physical items inside your workspace, whether you work from an office, a clinic, a rented suite, or your home, as well as other business assets that you use outside of the workplace. BPP typically covers items such as:
If these items are damaged, stolen, or destroyed, BPP insurance can help pay to repair or replace them.
Berxi allows customers to add BPP coverage to any general liability policy as an optional endorsement, making it simple to get both general liability protection and business asset protection through a single provider.
While BPP protects the items inside your workspace, commercial property insurance covers both the building you own and its contents. This is broader coverage typically intended for business owners who own the buildings their businesses operate in. If you lease or rent your workspace, business personal property insurance may be the better fit.
A business owner’s policy (BOP) packages several common coverages into one policy. A typical BOP includes general liability insurance, commercial property insurance, and business interruption coverage. This policy is often best for companies that own their office space rather than lease it.
Workers’ compensation insurance covers injuries or illnesses employees suffer on the job. It covers costs such as medical expenses, lost wages, and rehabilitation costs. Most states require businesses with employees to carry workers’ compensation insurance.
If your small business owns or uses vehicles for work — such as transporting equipment or traveling to client sites — you may need commercial auto insurance. This policy covers liability and property damage stemming from with business-related driving. It’s a lot like your personal auto insurance policy, but for work vehicles.
Cyber liability insurance helps protect businesses from the financial consequences of data breaches, cyber attacks, and privacy-related claims. It can help cover costs such as legal fees, data recovery, customer notification, regulatory fines, and even ransomware payments. This coverage is increasingly important for small businesses that store customer information or rely on digital systems.
Many small businesses benefit from insurance even when it’s not legally required. The rules depend on your state and industry, but here are some general guidelines:
Even low‑risk or home‑based businesses can be financially vulnerable without coverage. One accident, lawsuit, or equipment loss can be costly.
The pricing for your small business insurance options will vary based on your coverage type, industry, location, revenue, and risk level. Here’s what you can expect from Berxi’s pricing:
For larger or higher‑risk businesses, premiums will likely be higher because these businesses are more likely to face claims or own more equipment.
If you add business personal property insurance to your general liability policy, that endorsement will increase your premium slightly while providing essential protection for the assets your business relies on.
The best way to find out how much small business insurance will cost is to get a free online quote — it takes less than five minutes, and you may be surprised by how much you can save.
Whether you’re a solo professional or running a growing business, having the right insurance can help you operate with confidence. Berxi offers affordable, customizable coverage options for small businesses, including:
Get a quote today and protect the business you’ve worked so hard to build.
Yes. While forming an LLC can provide some legal separation between personal and business assets, an LLC does not protect your business against lawsuits, accidents, or property damage. LLCs still need liability and property coverage to stay protected. Here’s our guide to getting liability insurance without a business license.
Some types — like workers’ compensation or commercial auto insurance — are legally required depending on your state and business activities. Other types, like general liability, may be required by landlords or clients.
Yes. Homeowners policies typically do not cover business activities. If customers visit your home or if you use equipment or inventory for work, you may need general liability or BPP coverage.
Many small businesses owners start with these essentials:
Other types — like workers’ comp, cyber liability, or commercial auto — may be added based on a business’s activities.
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The views expressed in this article are those of the author and do not necessarily reflect those of Berxi™ or Berkshire Hathaway Specialty Insurance Company. This article (subject to change without notice) is for informational purposes only, and does not constitute professional advice. Click here to read our full disclaimer
The product descriptions provided here are only brief summaries and may be changed without notice. The full coverage terms and details, including limitations and exclusions, are contained in the insurance policy. If you have questions about coverage available under our plans, please review the policy or contact us at 833-242-3794 or support@berxi.com. “20% savings” is based on industry pricing averages.
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