Small Business Insurance Essentials

Insurance is the cheapest disaster recovery plan you'll ever buy. These five coverages form the foundation of a resilient small business.

1. General Liability

Covers third-party bodily injury and property damage. Required by most commercial leases.

2. Business Owner's Policy (BOP)

Bundles general liability with property coverage at a lower combined premium.

3. Workers' Compensation

Texas is the only state where it's optional — but going without it exposes you to unlimited personal injury lawsuits from employees.

4. Cyber Liability

If you store customer data, take payments, or rely on email, you need this. Average breach cost for small business: $120K.

5. Business Interruption

Pays your bills when a covered event forces you to close. Often the difference between a setback and a shutdown.