How to Get Business Insurance for Your Company in 2024

Whether you run a brick-and-mortar store or operate as an online contractor, securing the right business insurance is crucial for safeguarding your operations against unforeseen events.

You might wonder how to get business insurance with various types and numerous providers available. In this guide, we'll walk you through four straightforward steps to insure your small business, from assessing your risks to selecting the policies that best suit your needs.

>> Get Your Business Insured With NEXT >>

How to Get Business Insurance: A Step-By-Step Guide

Before purchasing small business insurance, taking a few simple steps is important to assess your business risks and compare policies from reputable insurance companies.

Evaluate Your Business Risks

Understanding your business risks will help determine which types of insurance are necessary. Here are some examples of potential risks for a business owner:

• Lawsuits due to customer injuries
• Property damage
• Client lawsuits over unsatisfactory work
• Cybersecurity breaches
• Food spoilage
• Bodily injuries

Start by listing the concerns that keep you awake at night as a business owner. This will help you identify the insurance policies your business needs.

Research Business Insurance Coverage Types

NEXT, explore different business insurance policies and the protections they offer. Depending on your business, you might need liability coverage to guard against lawsuits, property insurance if you own physical assets, or both. Common policies for small business owners include:

• General liability insurance: Often the first policy purchased by small business owners, covers common third-party lawsuits, like customer injuries.
• Business owner’s policy: Ideal for small, low-risk businesses, a BOP combines general liability insurance with commercial property insurance at a lower cost than buying both separately.
• Professional liability insurance: This protects professionals who offer services or advice against lawsuits over late, incomplete, or unsatisfactory work. It’s also known as errors and omissions insurance in some industries.
• Workers’ compensation insurance: Most states require this as soon as you hire your first employee. It covers medical expenses related to work injuries.
• Cyber insurance: If you handle sensitive client information, cyber insurance can cover costs related to data breaches.
• Commercial auto insurance: Required in most states if you own a business vehicle. Consult a licensed insurance agent to identify the types of insurance that suit your business.

>> Get Your Business Insured With NEXT >>

Assess Business Risk

Only some businesses need every type of insurance. For instance, if you’re an accountant working from home, professional liability coverage might be essential, but workers’ compensation insurance might not be necessary. 

Some businesses, however, come with greater inherent risks. Consider these factors when choosing the right insurance:

• Digital footprint: Do you rely heavily on computers for your business? If your computer is hacked, what’s your backup plan? Cyber insurance might be valuable here.
• Physical workspace: Does your business have a location that customers visit? If so, general liability insurance is crucial.
• Regional weather: Is your business in an area prone to natural disasters like floods or hurricanes? In this case, commercial property insurance could protect your assets.

Get Quotes from Business Insurance Providers

You have options when gathering insurance quotes. You can work with a broker or compare options through a third-party website to find the best small business coverage.

NEXT

NEXT Insurance tailors its policies specifically for sole proprietors and small businesses, offering affordable options with low monthly rates. It also keeps costs down by excluding unnecessary coverage for self-employed businesses. 

While NEXT Insurance doesn't cover every type of commercial insurance, it focuses on what matters most to small businesses: general liability, professional liability, Errors and Omissions (E&O), commercial auto, tools and equipment, and workers’ compensation.

Given the limited range of policies, NEXT Insurance may only be the best fit for some businesses, but its coverage is available in all U.S. states. It offers instant online quotes, uncommon in business insurance and can even start coverage on the same day.

>> Get Covered by NEXT’s Insurance >>

Hiscox

Hiscox offers a variety of insurance policies for small businesses, including Business Owners' Policies (BOPs), General Liability, Professional Liability, and cybersecurity.

They also collaborate with other insurers and third parties to provide additional options, such as short-term general liability, professional liability, medical malpractice, workers’ compensation, employment practices liability, commercial auto, Directors and Officers (D&O), and commercial umbrella coverage.

While Hiscox doesn’t provide a stand-alone commercial property policy, businesses can obtain coverage through a BOP or one of the company’s wholesale brokers. Hiscox also offers tailored coverage for home-based businesses, though it doesn’t provide farm and ranch insurance options.

>> Get Covered by Hiscox’s Insurance >>

The Hartford

The Hartford offers small businesses a wide range of comprehensive insurance options. 

Alongside standard coverages like workers’ compensation and Business Owners' Policies (BOPs), they offer specialized products, including global insurance for companies with international exposure, such as those with online sales and home-based business insurance.

One standout feature of The Hartford is its business income coverage, which has a zero-hour waiting period and lasts until your business is ready to reopen. 

This contrasts with traditional business income coverage, which typically requires a 48- to 72-hour waiting period and only covers up to 30 days.

>> Get Covered by The Hartford’s Insurance >>

Compare Quotes and Purchase a Policy

When you receive your quotes, choosing the cheapest policy to save on insurance costs can be tempting. However, opting for a policy that doesn’t provide adequate protection could cost your business much more in the long run.

It's important to consider what the liability insurance covers, the provider's rating, and other factors like coverage limits and deductibles.

Select coverage that appropriately addresses your risks, with limits sufficient to cover potential lawsuits. As your business evolves, you may need to adjust your coverage types, limits, deductibles, or other options to align with your budget and needs.

Reassess Your Policy Annually  

After securing your first insurance policy, set a reminder to review it annually before the term ends. “Think of the one-year assessment as a business checkup,” says McChristian.

She emphasizes the importance of conducting an annual review because business risks may change as a business grows, and policies should adapt accordingly. “What you need one year might not be the same the next,” McChristian notes.

For instance, if you’ve gained more clients over the past year, your insurance coverage might need to be updated to reflect the increased risk. Each year, you can expand or scale back your policy as necessary.

>> Get Your Business Insured by NEXT >>

How to Get Business Insurance FAQs

What Insurance Should You Get if You’re Just Starting a Business?

The type of business you run will determine your exact needs, but a solid starting point is general liability insurance. 

This coverage typically protects you and your small business against claims involving personal injury, property damage, and even libel or slander if a customer or member of the public sues your business.

Do You Need Insurance to Run a Business?

If you have employees, most states require you to carry workers’ compensation insurance, though the specific requirements can vary depending on the state.

What Are the Different Types of Business Insurance?

Several common types of insurance can provide essential protection for safeguarding your business. These include general liability insurance, commercial auto insurance, workers’ compensation insurance, cyber liability insurance, professional liability insurance, business interruption insurance, and commercial property insurance. 

Each type of coverage addresses specific risks and aspects of your business operations, ensuring that you’re well protected against potential financial losses.

>> Get Covered by NEXT’s Insurance >>

Bottom Line

Your insurance policy safeguards your business. Obtaining coverage from a trusted provider like NEXT or Hiscox isn't complex. As your business evolves, your insurance needs will change, too. 

If you need to modify or update your policy but need clarification on the specifics, contact your broker or an insurance company representative to explore the different coverage options available.

>> Get Your Business Insured by NEXT >>

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• Small Business Insurance New Jersey
• Small Business Insurance Illinois
• Small Business Insurance Texas
• Small Business Insurance California
• Small Business Insurance New York
• Small Business Insurance North Carolina

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