Commercial property insurance protects your businesses assets against damage, theft, or less. Read on to learn how commercial property coverage works and whether your business needs it.

Professional liability insurance protects attorneys, accountants, doctors, consultants, and other professionals against accidental errors and omissions in their work. Read on to learn how.

General liability insurance protects businesses against personal injuries to customers or members of the public. It also guards against damage to customer property, advertising liability, and more.

There are many types of business insurance that freelancers and self-employed people may need. In this guide, we'll discuss the various types, their benefits, and how they work.

Business insurance is a category of coverages that help protect companies and their owners from a wide range of potential risks, from property damage and liabilities to employment practices and mistakes in work product. Having the right type of insurance coverage in place can provide much-needed security when unexpected events threaten a business’s finances. Business insurance helps protect companies from costly lawsuits and other legal actions that could result from accidents, natural disasters, and other unpredictable losses. It also provides reassurance that a business is prepared if the unexpected happens. If you need coverage for your business, there are many providers that offer a variety of policies. Having worked with most of the big insurers, we recommend The Hartford as a reputable provider of small business insurance. If you have insurance needs, speak with an expert at The Hartford to see what they can do for you. What Is Business Insurance? Business insurance is a contract between a small business and an insurance company. Under the contract, the insurance company agrees to protect the business against a range of risks that vary based on the type of coverage the business buys. In exchange, the business pays the insurer a premium each month that is based on several factors. Business insurance is used by businesses of all sizes – including sole proprietors – to protect them from risks arising as a part of their business activities. These can include damage to their own business’s property, damage to someone else’s business or property, or liability arising from injuries to customers or other members of the public. What does business insurance cover? Business insurance covers a range of risks, depending on what types of coverage a business buys. Generally, the things covered by business insurance can be grouped into categories, including the business’s property, other people’s property, interruption of business, and potential liabilities arising from injuries suffered by clients, employees, or members of the public. If you want to learn more about the risks that small businesses face and how to protect your company against unforeseen risks, subscribe to our newsletter. Every week, we update readers with new trends or articles explaining different topics related to small businesses, including insurance. And, if you subscribe, we’ll give you up to $10,000 in AD&D insurance coverage absolutely free. There are also a range of other benefits you can add, all for just $1 per month. How Small Business Insurance Works Business insurance is a contract between the business and the insurance company. The business agrees to pay the insurer a premium in exchange for protection from certain risks. Depending on the type of policy, that protection may vary. For instance, some policies may offer more coverage than others if there is an accident involving injury or death. You buy coverage. The first thing to do is find an insurance company to work with. Coverage types and amounts vary, so it’s important to explain your business and its risks to a knowledgeable expert to ensure you get the policy that fits your needs. You also need to read the policy and understand what it covers, as well as any exclusions that may apply. You pay premiums. As with any other type of insurance, you have to make sure you can afford your monthly premiums. Depending on the types and amounts of coverage you buy, premiums may range from under $100 to several hundred dollars per month You encounter a covered event. If a loss or damage covered by your policy does occur, you’ll need to document any damages and records of any losses. You file a claim. When filing a claim, provide detailed information about the event and any related damages. This can include photos of the damage, repair cost estimates, invoices, and more. Once you provide this information to your insurer, it will review the claim and determine if it’s covered by your policy. You get paid. If your insurer approves your claim, the company will reimburse you or pay for damages up to the limits of your policy, minus any applicable deductible. It’s important to note that some policies may have a waiting period before you can make a claim and receive payment, so read your policy carefully and understand what the process is in case of an unexpected event. Types of Business Insurance Coverage There are many different types of business insurance and each one protects a business and its owners against a different set of risks. Below are some of the most common types of business insurance: General liability General liability insurance provides protection against claims of negligence or faulty workmanship. This coverage can help protect your business from costly lawsuits, medical expenses, property damage, and other liabilities resulting from accidents that occur on business premises or when conducting business operations off-site. General liability insurance is particularly important for businesses operating in highly litigious industries where accidents or injuries are more likely to occur. It can also be useful for businesses that face potential property damage from operations, as it can help cover the costs of repairs or replacements if an accident happens. However, general liability is a core coverage that pretty much any business that interacts with the business should probably carry. Commercial property Commercial property insurance provides coverage for damage to a business’s physical assets, such as its building and any equipment it owns. This coverage can help protect against losses from fires, theft, or other disasters. It also covers the cost of repairs or replacement of lost or damaged items. Commercial property insurance is important for any business that owns physical assets, as it can help cover the cost of repairs or replacements if an accident happens. It’s particularly useful for businesses that have an elevated risk of incurring property damage, such as those in the construction and manufacturing industries. Business owners policy (BOP) A business owners policy (BOP) is a package policy that combines multiple types of coverage, including general liability and commercial property coverage. This type of policy provides all-in-one protection against liability and property damage, helping to streamline costs and simplify the process for businesses. A BOP is especially useful for businesses that face multiple risks, as it provides comprehensive coverage in one policy. This type of policy can be essential for retail, hospitality, and construction businesses, where both liability and property losses go hand in hand. It also provides protection against potential lawsuits or other liabilities that may arise from business operations. Workers’ compensation Workers’ compensation insurance provides protection against financial losses resulting from workplace injuries or illnesses suffered by employees. This type of coverage can help cover medical expenses, lost wages, and legal fees if an employee is injured while on the job. Workers’ compensation is legally required in all states except Texas for businesses with employees. It’s especially important for businesses that are more likely to have a higher risk of employee injury or illness, such as construction or manufacturing. It can also provide peace of mind for companies with employees who are required to travel or work off-site. Employment practices liability insurance (EPLI) Employment practices liability insurance (EPLI) provides coverage for businesses against claims of wrongful termination, discrimination, sexual harassment, and other employment-related liabilities. This type of insurance can help protect against financial losses resulting if a business’s employee is harassed or discriminated against by a manager or customer. EPLI is particularly important for businesses with multiple locations or layers of management, increasing the risk of employment-related liabilities. It can also protect against costly legal fees and settlements resulting from employment-related lawsuits. Professional liability Professional liability, also called errors and omissions insurance, provides protection against claims of negligence or faulty workmanship resulting from professional services provided by a business. This coverage can help protect businesses from costly legal fees and settlements resulting from errors or omissions in the course of providing such services. Professional liability coverage is particularly important for businesses operating in industries where errors or omissions are more likely to occur, such as consulting or legal services. It can also provide protection against claims from customers or suppliers if an employee has mishandled finances or other business matters. This type of coverage is essential for protecting businesses from the financial burden resulting from professional negligence. Commercial auto Commercial auto insurance provides coverage for a business’s vehicles, including cars, trucks, vans, and trailers. This type of policy can help cover the costs of repairs or replacements if an accident happens while an employee is operating a company vehicle. It also covers legal fees and settlements resulting from injury or property damage caused by a company vehicle. Commercial auto insurance is essential for any business that owns or leases vehicles, as it can provide protection against the financial burden resulting from an accident. It’s particularly important for businesses operating in industries where employees are regularly required to drive company vehicles, such as transportation or delivery services. This type of coverage can also protect against liability claims if a customer is injured while using a company vehicle. Inland marine Inland marine insurance provides coverage for property that is moved from place to place, such as equipment or vehicles. This type of policy can help cover the cost of repairs or replacements if an accident happens while a business’s property is in transit. It also covers legal fees and settlements resulting from injury or property damage caused by the movement of goods. Inland marine insurance is particularly important for businesses that regularly move property from one location to another, such as construction or delivery services. This type of coverage can help protect against the financial burden resulting from an accident involving a business’s property while it is in transit. It can also provide protection from liability claims if a customer's belongings are damaged while in transit. If you want to learn more about different types of insurance and other topics that impact your small business, subscribe to our newsletter. You’ll also get $10,000 in AD&D coverage, just for signing up. Small Business Insurance Costs The cost of small business insurance varies depending on the type and amount of coverage needed, as well as several personal factors, including industry, location, number of employees, and claims history. It’s important to do research and compare quotes from multiple providers to make sure you get the best rate for coverage. The direct costs of business insurance come in two forms: Premiums. Businesses pay premiums to insure their business assets and operations against potential losses. Premiums are typically paid on a monthly or annual basis. Deductibles. A deductible is an amount of money that a business must pay before the insurance company begins to cover any losses or damages. Generally, deductibles are based on a percentage of the policy’s total cost and can range from 1% to 10%. By choosing a higher deductible, businesses may be able to lower their premiums, but they’ll also face higher out-of-pocket in the event of a claim. Why Business Insurance Is Important  Having appropriate and adequate business insurance coverage is an important part of running a business. It can help protect against unexpected losses from property damage and also guard against liabilities that can arise in the event of a workplace accident. Additionally, having the right coverage in place can help businesses stay compliant with government regulations and legal requirements. Investing in the right type of business insurance can be essential in protecting a business’s assets. Businesses should consider their unique needs and risk factors, as well as any applicable laws or regulations when selecting the right insurance policy for them. Working with an experienced professional can help business owners make sure they get a policy that meets their needs and budget. If you need insurance for your business or want to learn more about how different types of coverage can help protect you, contact The Hartford today. The company’s knowledgeable representatives can help you identify the right coverage for your needs.

EPLI protects you and your small business in case you have a disagreement with a current or former employee. Learn more about how this coverage, its benefits, and how much it costs.

Workers’ comp is a type of business insurance that can help self-employed individuals and small business owners protect themselves in case they get hurt or sick in the course of running their business and are unable to work. In cases where a self-employed person gets hurt or sick at work, workers’ comp provides coverage for medical and rehabilitation costs as well as lost wages. If you’re self-employed, workers’ comp can help protect your business in case of an injury or illness. It can also provide a financial cushion if you’re unable to work for a period of time, helping cover the costs associated with lost income and paying for ongoing medical care.

Business insurance is a type of insurance that protects the property and liability of businesses and their owners, including self-employed individuals. There are various types of insurance that self-employed people need, depending on their industry and the particular risks they face. The cost of self-employment insurance also varies depending on the type and amount of coverage you select.  While business insurance can be a valuable financial safety net, there are also some drawbacks to consider before purchasing a policy. In this guide, we’ll cover everything you need to know about business insurance for self-employed individuals, including who needs it, what it covers, how much it costs, and more. Who Needs Business Insurance Business insurance is a crucial investment for any commercial enterprise, including an individual who runs their own business independently. It provides valuable protection against numerous risks companies face, including injury (to the business owner, their customers, or members of the public), liabilities, theft, and property damage. Without adequate coverage, self-employed individuals can face overwhelming expenses in the event of an incident. Business insurance is critical to invest in if you are the sole earner in your household or do not have the savings to handle unexpected expenses. This kind of insurance can provide peace of mind and allow you to focus on building your business without worrying about every conceivable risk. What Does Business Insurance for Self-Employed Cover? Personal liability is the most important thing that business insurance covers for self-employed individuals. If someone gets injured while dealing with your company (or merely being on your property), business insurance can keep you from having to pay significant medical bills and legal settlements out of pocket. Business insurance is also available to protect your most valuable business property in case of an accident. If someone steals your work computer, the right insurance will pay for a replacement to minimize interruptions to your work. And, if your work is interrupted, some business insurance policies will provide you with replacement income if you can’t work due to an injury or illness. The income you will receive from your policy will depend on the specific policy you purchase. Here are some of the most common types of business insurance that self-employed people need: General Liability Insurance General liability insurance is a must-have for any self-employed individual. This type of insurance is designed to protect business owners from potential liabilities that may arise during the course of their operations. It covers a wide range of risks, including bodily injury, property damage, and lawsuits. General liabilities cover accidents and incidents on your property, such as if a customer slips, falls, and gets hurt. No matter what industry you work in, if you are self-employed, having business liability insurance is essential for protecting yourself and your business. Professional Liability Insurance Professional liability insurance is similar to general liability insurance, except that it covers risks associated with professional work. This includes coverage for professionals whose customers depend on their advice and work product, such as doctors, lawyers, and consultants. Also called errors and omissions insurance, professional liability insurance protects against errors and omissions made in a professional’s work – essentially, any mistake in their work that ultimately causes harm to a client and leads to financial loss. Business Interruption Insurance Business interruption insurance covers losses that a business may incur due to unexpected interruptions such as fire, theft, or natural disasters. This type of coverage is specifically designed to protect a business from losses that may arise from unforeseen events. It keeps the company afloat during times of crisis. The policy covers losses that may include rental expenses, payroll, revenue losses, operating expenses, and expenses related to data loss or property damage. Self-employed individuals, such as freelancers, consultants, or entrepreneurs, should strongly consider having this type of insurance as their livelihood relies heavily on their ability to generate income. Business interruption insurance provides an extra layer of protection to keep a self-employed individual afloat and ensure that their business will survive unexpected and costly interruptions. Commercial Property Insurance Commercial property insurance is a crucial coverage that every self-employed individual with business property should have. It protects your company’s physical assets from unforeseen events such as theft, natural disasters, or accidental damage. Any business property, such as buildings, equipment, tools, and inventory, can be covered to ensure quick restoration in case of a loss. Without proper insurance, a self-employed individual could face significant financial damages that could disrupt their business operations. If your business owns property that it depends on to operate that’s not adequately covered (such as by a homeowner’s policy if you work from home), commercial property insurance can be a valuable investment to ensure your property is protected. What’s Not Covered by Business Insurance of Self-Employed Individuals When shopping for insurance, it is crucial to understand the limitations of insurance coverage. While the right policy can provide essential protection and peace of mind, certain types of events may not be covered under your policy. These are some of the main things that are not covered by self-employed insurance: Unemployment benefits: If you get fired by a client, insurance generally won’t protect your lost income. Disability insurance: Business insurance policies usually don’t include disability insurance – you’ll need a separate policy. Workers’ compensation: You can buy workers’ comp as a self-employed individual, but it may not be included in a general business owner policy. Pre-existing conditions: If you’re already facing liability from an accident or have had property stolen or damaged, those things won’t be covered if you purchase a policy after the fact. Ongoing medical treatment: Business insurance may cover some initial medical payments if you get hurt on the job, but it probably won’t pay for extensive rehab or long-term care. How Much Does Self-Employed Insurance Cost? The cost of self-employment insurance varies depending on the type and amount of coverage you select. Generally, the more coverage you want, the more expensive your policy will be. For example, $1 million of general liability coverage might cost you less than $1,000 annually if you work in a low-risk injury. In contrast, the same amount of commercial property coverage might cost you upwards of $3,000 annually. Policies can also vary significantly in price depending on the company you purchase your policy from. Compare rates from multiple companies before selecting a self-employment insurance policy to ensure you get the best possible coverage at the best price. Business insurance can be a great way to financially protect yourself and your income if you are unable to work. Still, it is important to ensure you are getting the right coverage for your needs at a price that fits your budget. Other Types of Business Insurance In addition to self-employment insurance, there are several other types of business insurance to consider. These include: Workers’ Compensation Insurance Workers’ compensation insurance is a crucial protection plan that provides financial aid to employees – even self-employed individuals – who get hurt or sick during their work. Put simply, it protects both the employer and the employees (even if they’re the same person) in the event of a workplace injury. Coverage typically includes medical bills, lost wages, and rehabilitation costs. Self-employed individuals should consider obtaining workers’ compensation insurance if they have any employees, as this form of coverage is required by law in most states. Sole proprietors in some states can voluntarily acquire workers’ compensation insurance, but it is not required. Consult an insurance professional and check your state’s requirements before getting coverage. Commercial Auto Insurance Commercial auto insurance is crucial if you’re self-employed and depend on your car for work (other than to commute to and from a workplace). This type of insurance covers any vehicle used for business purposes, whether a sedan, truck, or trailer. The coverage typically includes liability, collision, and comprehensive protection, which can safeguard against damaged property or medical expenses. Unfortunately, many self-employed people assume that their personal auto insurance will cover their vehicle and protect them against liability if they’re in an accident. However, if their insurance company discovers they had an accident while working, that may not be the case – and that can be devastating. So, if you rely on a vehicle for your daily operations – whether as a landscaper or an Uber driver – commercial auto insurance is crucial to protecting yourself, your business, and your assets. Hired and Non-owned Auto Insurance Hired and non-owned auto insurance may be unfamiliar to many, but it’s crucial for self-employed individuals who frequently drive cars they don’t own for business purposes. This type of insurance covers accidents while driving a vehicle not owned by the company or individual but used for business purposes. For instance, if you rent a box truck to help support your contracting business and then get into an accident, your personal auto insurance may not cover any resulting damages. With hired and non-owned auto insurance, any bodily injury or property damage would be covered. This type of insurance is essential for those who frequently rent cars or ask employees to use personal vehicles for work-related purposes. By investing in hired and non-owned auto insurance, self-employed individuals can protect themselves from potential financial risks and keep their businesses operating smoothly. Contractor’s Tools and Equipment Insurance Contractor’s tools and equipment insurance is an essential protection for all self-employed contractors, painters, and other tradespeople who use tools, machinery, or other equipment while working on client projects. This insurance coverage can provide financial assistance for repairing or replacing any damaged, lost, or stolen tools and equipment belonging to the contractor. Such insurance typically covers losses caused by theft, vandalism, fire, and accidental damage. Contractor’s tools and equipment insurance is an important form of coverage to consider, as it can help protect a contractor’s business from potential losses and help cover the expenses associated with replacing or repairing their tools and equipment. Any self-employed contractor who relies on costly or specialized tools should consider contractor’s tool and equipment insurance to mitigate the risk of loss and protect their livelihood. Inland Marine Insurance Inland marine insurance is a type of insurance that covers goods and materials that are in transit over land. This type of insurance was originally designed to protect cargo on trains and boats. However, it has expanded over time to include any kind of land-based transportation. In addition to covering goods and materials in transit, inland marine insurance can also cover property stored in a warehouse or other stationary location. Self-employed individuals who should consider having inland marine insurance include those who transport equipment, tools, or other goods for their business and those who store goods or equipment at a non-owned location. By having this type of coverage, these individuals can ensure they are protected in case of damage or loss to their valuable items. Equipment Breakdown Insurance As a self-employed individual, it is vital to have access to comprehensive insurance options that protect you from unexpected downtime and financial losses. One such coverage that is crucial for many professionals to consider is equipment breakdown insurance. Essentially, this type of policy covers the cost of repairs and replacements for any necessary equipment in your business that experiences a mechanical or electrical failure, resulting in costly repair or replacement expenses. This can include computer hardware, phone systems, printers, and even specialized equipment, depending on the type of work you do. With equipment breakdown insurance, you can protect your most valuable equipment, minimizing the impact of sudden issues on your business operations and bottom line. Whether you are a graphic designer, consultant, or freelance writer, this protective coverage is worth considering to ensure your business is safeguarded and your livelihood is secure. Cyber Insurance In today’s digital age, where most transactions, communication, and business operations occur online, cyber attacks and data breaches have become more common. This has led to a growing need for cyber insurance, a specialized insurance product that helps protect businesses and individuals from the financial losses that result from cyber attacks. Cyber insurance covers many risks, including data breaches, network failures, cyber extortion, and other cyber-related risks. Self-employed individuals, such as freelancers, consultants, and small business owners who operate primarily online, should consider getting cyber insurance. This is especially true for those who process transactions online or store sensitive client information in the cloud. This type of insurance can offer financial protection against damages and losses caused by cyber incidents that could bankrupt them. In today’s interconnected world, cyber insurance is an essential form of protection for individuals and businesses of all sizes. Commercial Umbrella Insurance Commercial umbrella insurance is an additional layer of liability coverage that can provide an added safety net for self-employed individuals who want to protect their businesses from financial loss. This type of insurance provides coverage that goes above and beyond the limits of a general liability policy, offering added protection in cases where lawsuits or damages exceed the underlying policy’s limits. It can cover a wide range of risks, such as bodily injury, property damage, and advertising injury. Self-employed individuals who work in industries with a higher risk of lawsuits or costly damages, such as consultants, contractors, or personal trainers, should strongly consider obtaining commercial umbrella insurance to ensure their business and personal assets are protected against potential financial losses. Surety Bond A surety bond is a type of legal agreement similar to insurance that provides financial protection to individuals and businesses in case of breach of contract or non-performance of a specific task. The bond guarantees that the party responsible for completing the task will fulfill their obligation or face financial consequences. It covers losses incurred by clients, customers, or any other third party who suffers a loss due to the non-performance of the bonded party. Self-employed individuals who should have a surety bond include contractors, engineers, and other individuals who operate businesses involving large sums of money or contractual obligations. Surety bonds protect those who need it and enhance credibility and trustworthiness in the eyes of potential clients. Examples of Self-Employed Insurance Claims