Most business owners need workers’ compensation insurance if they have employees, since it’s required by law. Many also carry general liability insurance to cover injuries and property damage, along with property coverage for equipment and buildings. Service-based businesses may also need professional liability insurance.
FAQ_category: (HIDDEN) Industry FAQs
Workers compensation insurance means a type of business insurance that covers medical expenses, lost wages, and disability benefits when an employee is injured or becomes ill because of their job. It also protects employers from lawsuits and is required for most businesses with employees in many states.
Workers comp insurance for a small business usually costs $500 to $3,000 per year. The exact cost depends on your industry, payroll size, location, and claims history. Low-risk businesses pay less, while high-risk industries like electricians pay significantly more.
Commercial insurance protects businesses from financial losses due to property damage, liability claims, and employee injuries. Unlike personal insurance, it’s underwritten based on your business type, revenue, and risk, and is often required by landlords, lenders, and clients.
No. You don’t need an LLC to get business insurance. Sole proprietors, freelancers, and partnerships can all buy it. Many clients require proof of insurance before you even form an LLC.