Guide
The business insurance guide
What's required, what most businesses carry, and where coverage fits in the bigger picture — in plain English, for growing businesses nationwide.
What business insurance is legally required?
In most states, the most common legally required coverage is workers’ compensation: most employers with employees must carry it unless a specific exclusion applies. Businesses with vehicles must meet auto insurance requirements, and licensed professions or contractors may have bonding and coverage requirements tied to their license. Requirements vary by state, so we map yours wherever you operate.
Beyond what the law requires, most coverage becomes mandatory through contracts — clients, landlords, lenders, and general contractors routinely require general liability, specific limits, and additional insured status before you can do business. This is where a risk advisor earns their keep: getting indemnification and liability transfer right before you sign.
What coverage do most businesses carry?
A typical small business starts with general liability and commercial property — often bundled in a Business Owners Policy — plus workers’ compensation if it has employees. From there, businesses add commercial auto for vehicles, professional liability for advice and services, cyber for data, umbrella for higher limits, and surety bonds for contracting.
The right mix depends on what you do, what you own, who you employ, and what your contracts require. We build it into one coherent plan, sized to what a loss would actually cost you, rather than a stack of policies sold one at a time.
Core coverages to know
- General liability — third-party injury & property damage
- Commercial property — buildings, equipment, inventory
- Workers' compensation — employee injury (required for most)
- Commercial auto — business vehicles & fleets
- Professional liability / E&O — advice & services
- Cyber liability — data, ransomware, breach response
- Umbrella / excess — higher limits above primary
- Surety bonds — licensing, bids, and projects
Business insurance FAQs
Is workers' compensation required?
In most states, yes. Most employers with employees are required to carry workers' compensation insurance unless a specific legal exclusion applies, and the exact rules vary by state. Contractors and many businesses also need proof of coverage to satisfy general contractors and project requirements.
Is general liability insurance required?
Most states do not require general liability for the average business, but it is routinely required by clients, landlords, lenders, and general contractors before you can sign a contract, lease space, or start a job — which makes it effectively mandatory for most operating businesses.
What insurance do contractors need?
Most contractors carry general liability, workers' compensation, and commercial auto, plus a contractor license bond and additional bonds for bidding and projects. Builders risk and umbrella are added based on the work, and contracts often dictate the specific limits required. Licensing and bonding rules vary by state, so we confirm what applies where you work.
How much does business insurance cost?
Cost depends on your industry, size, revenue, payroll, vehicles, claims history, and the limits your contracts require — so there is no single number. The most reliable way to get an accurate figure is a quick risk review. Call 702-483-0888 or request one online.
Built tough. Covered right.
Not sure what your business needs? A no-obligation risk review will tell you. Request one today.