Essential business insurance (2025 requirements): (1) General Liability: Covers third-party bodily injury, property damage, advertising injury.

Required by most commercial leases and client contracts.

Cost: $400-$1,500/year for $1M/$2M coverage.

Example: Customer slips in your office, breaks arm, sues for $50k medical + lost wages → Covered. (2) Professional Liability (E&O): Covers errors, omissions, negligence in professional services.

Essential for consultants, lawyers, accountants, IT, architects.

Cost: $500-$3,000/year.

Example: Consultant gives bad advice causing $100k client loss → Lawsuit defense + settlement covered (up to policy limit). (3) Workers Compensation: Legally required in most states if you have employees.

Covers medical expenses + lost wages if employee injured on job.

Cost: $0.75-$2.74 per $100 payroll (varies by industry/state).

Construction = $2.50+, office = $0.50.

Example: $500k annual payroll × $1.50 rate = $7,500/year workers comp premium. (4) Commercial Property: Covers building, equipment, inventory, furniture from fire, theft, vandalism.

Required if financed property.

Cost: $500-$3,000/year depending on property value. (5) Business Owners Policy (BOP): Bundles General Liability + Property + Business Interruption.

Cost-effective for small businesses: $1,000-$3,000/year vs $2,500-$5,000 buying separately. 2025 trends: Cyber Liability now essential (data breach, ransomware).

Employment Practices Liability (EPLI) protects against discrimination/harassment lawsuits ($2k-$5k/year).

Commercial Auto required if company vehicles ($1,200-$2,500/year per vehicle).