Commercial insurance isn’t just a smart move—it’s often a requirement. Many landlords will require tenants to carry certain types of insurance before leasing commercial space. For example, general liability insurance can protect both you and the landlord from claims related to property damage or injuries on the premises. This requirement ensures that everyone involved is protected if something goes wrong—and it helps avoid costly legal disputes.

But beyond meeting lease requirements, the right insurance can protect your business from unexpected losses, giving you peace of mind and helping you bounce back quickly when challenges arise. Here’s a quick breakdown of the core types of insurance small businesses should consider:

1. General Liability Insurance

This is the foundation of most commercial insurance plans. It covers claims of bodily injury, property damage, and advertising injury. Whether someone slips and falls at your office or accuses your business of copyright infringement, general liability can help cover legal fees and damages.

2. Property Insurance

If you own or lease a physical space, property insurance is a must. It covers your building (if owned), equipment, inventory, and furnishings from losses due to fire, theft, vandalism, or certain natural disasters. Even if you’re renting, this protects everything inside that’s yours.

3. Workers Compensation Insurance

Required in most states, this coverage protects your team—and your business—if an employee gets injured or sick on the job. It covers medical expenses, rehabilitation, and lost wages, helping employees recover while shielding you from potential lawsuits.

4. Commercial Auto Insurance

If your business owns vehicles or if employees drive for work-related purposes, commercial auto insurance covers accidents, property damage, and bodily injury. Even personal vehicles used for business tasks might need to be covered under a commercial policy.

5. Professional Liability (Errors & Omissions)

This is especially important for service-based businesses. If a client claims your advice or service caused them financial harm, professional liability insurance can cover the legal costs, settlements, and defense fees—even if you didn’t make a mistake.

6. Cyber Liability Insurance

For businesses that store customer data or conduct transactions online, cyber liability insurance is becoming essential. It helps cover the costs associated with data breaches, including notification expenses, credit monitoring, and even ransomware response.