Running a business is a lot like juggling flaming swords while riding a unicycle – on a tightrope. It’s thrilling, rewarding, and slightly terrifying. And when things go wrong (because, at some point, they will), you’ll want to make sure you’re not left dangling without a safety net.
That’s where insurance comes in. I know, I know – it’s not the most glamorous topic. But think of it as the behind-the-scenes superhero of your business. So today, I’m sharing a quick insurance checklist for all the amazing business owners and entrepreneurs out there. Whether you’re just starting out or scaling up, this friendly guide will help you make sure you’ve got the right coverage in place.

Let’s break it down into plain English with a dash of humor and a whole lot of helpful information.

Let’s start with the classic: Commercial General Liability. This is the “I’ve got your back” policy that covers things like bodily injury, property damage, and even advertising injuries (yes, even if your ad accidentally offends someone or uses copyrighted material without permission).

If a customer slips on your floor or you accidentally damage someone’s property during a job, CGL helps cover the costs. If your business has a physical location, interacts with clients in person, or markets products/services – you’ll want this.

Now, this one’s like a combo meal at your favorite lunch spot. A Business Owners Policy (BOP) bundles several types of coverage into one neat package – usually including general liability and property insurance, sometimes even business interruption.

A BOP might be a better (and often more affordable) fit if your business needs both liability and property protection. Great for small to mid-size companies, especially those with a storefront, office space, or expensive equipment.

Tip: Ask your broker whether a BOP makes more sense than piecing everything together individually.

Do you sell, manufacture, or distribute a product? Then, the Product Liability Insurance is a must-have.

Accidents happen even if your product is made with the best intentions (and the best ingredients). Maybe someone has an allergic reaction or gets injured using it. This policy helps protect you against claims of harm caused by your product – even years later.

Even handmade candles or skincare creams could potentially spark a lawsuit. Better safe than sorry, right?

Here’s the non-negotiable: Workers Comp. If you have even one employee – yes, even if they’re part-time or seasonal – you are legally required to carry Worker’s Compensation Insurance in most states (California included!).

This covers medical expenses and lost wages if your employee gets injured on the job. Plus, it protects you from potential lawsuits.

Don’t skip this. Just don’t.

Hiring employees comes with a whole new set of risks. EPLI helps protect your business against claims like wrongful termination, discrimination, harassment, or other employment-related issues.

Disgruntled former employees can file claims even if you’re doing everything by the book. EPLI covers legal defense costs and settlements, and honestly, it’s a good one to have in today’s litigious environment.

Are you giving advice, offering services, or handling anything technical or legal? You’ll want Professional Liability Insurance, often called E&O Insurance.

If you make a mistake, miss a deadline, or something slips through the cracks and costs your client money, you could be liable. This coverage protects you from “Oops, my bad” moments that come with a hefty price tag.

Think consultants, accountants, real estate agents, and even fitness coaches. If your expertise is part of your business, E&O has your back.

Here’s a full breakdown of E&O Insurance.

Using your personal car to run business errands, visit clients, or transport tools and products? Personal Auto insurance doesn’t cover business use.

If you’re using a vehicle for your business – even occasionally – it’s time to look into Commercial Auto Insurance. Depending on the setup, you may need coverage for business use only, or a policy that covers both personal and business driving.

Learn more about Commercial Auto Insurance.

In this digital age, even the smallest business can fall victim to hackers. Whether you store customer emails, payment info, or sensitive data – Cyber Liability Insurance or Data Breach Insurance can help you recover from a cyberattack.

This includes costs related to notifying affected customers, investigating the breach, and restoring lost data. If you accept credit cards, keep client records, or have an online presence – this one is essential.

Learn more about Cyber Insurance and Identity Fraud Coverage.

And finally, the cherry on top: Commercial Umbrella Insurance.

Think of this as extra protection that kicks in when your other policies reach their limit. Say you’re facing a lawsuit and your General Liability maxes out – Umbrella coverage can cover the rest (up to your Umbrella limit, of course).

It’s relatively affordable and gives you peace of mind. If your business is growing or you work in a high-risk industry, this one is a smart move.

There you have it – a simple, no-nonsense checklist to help protect your business from curveballs. And remember, every business is different. That’s why working with a trusted insurance broker (hello!) can help you figure out what coverage fits your unique situation best.
So, pull out your current policies, have a chat with your agent or broker, and make sure your business isn’t accidentally walking a tightrope without a safety net.
After all, you’ve worked hard to build something amazing – let’s make sure it’s protected.

Insurance isn’t just a “set it and forget it” thing. Review your coverage yearly or whenever your business grows, changes, or adds new services. That way, you stay ahead of the game and sleep better at night.

Need help figuring it out? Let’s talk!