Business insurance, filed by trade
Business insurance by industry: the cover your trade starts from.
Which policies contractors, retailers, consultants, food businesses and other small firms commonly need, set out trade by trade, with what each policy actually pays for in plain words.
The directory of trades
Find the trade closest to yours
The cover a business needs follows what it does all day: where the work happens, who it touches and what can go wrong. A trade's usual starting point is a short list of policies, and it is rarely the same list twice.
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Contractors and construction trades
Work happens on someone else's property, with tools, vans and often subcontractors. Clients and general contractors frequently ask for a certificate of insurance before a job starts.
Policies commonly raised
- General liability
- Workers' compensation
- Commercial auto
- Tools and equipment
- Surety bonds
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Retailers and shops
Stock on the shelf, a building with customers walking through it, and products that leave with them. Most of the exposure sits in the premises.
Policies commonly raised
- General liability
- Commercial property
- Product liability
- Business interruption
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Consultants and professional services
The product is advice or expertise, so the claim to plan for is a client saying a mistake or a missed deadline cost them money.
Policies commonly raised
- Professional liability
- General liability
- Cyber liability
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Food businesses
Restaurants, cafes, caterers and food trucks. Food that makes someone ill, kitchens that catch fire, staff on their feet all day and, where drinks are served, alcohol.
Policies commonly raised
- General liability
- Product liability
- Liquor liability
- Commercial property
- Workers' compensation
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Health, beauty and wellness
Salons, personal trainers, massage and wellness practices. Hands-on work with clients brings injury and treatment claims alongside the usual premises risks.
Policies commonly raised
- Professional liability
- General liability
- Commercial property
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Online and creative businesses
Online shops, designers, developers and content studios. Customer data, client deliverables and, for sellers, the products themselves.
Policies commonly raised
- Cyber liability
- Professional liability
- Product liability
- General liability
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Transport and delivery
Couriers, movers and haulage. The vehicle is the business, and the goods being carried usually belong to someone else.
Policies commonly raised
- Commercial auto
- Cargo insurance
- General liability
- Workers' compensation
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Cleaning, repair and home services
Cleaners, handypeople, landscapers and repair firms working inside clients' homes and businesses, often with keys and access to valuables.
Policies commonly raised
- General liability
- Janitorial and fidelity bonds
- Commercial auto
- Tools and equipment
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Other small firms
Most small businesses start from the same base: general liability, cover for property and equipment, and workers' compensation once there are employees.
Policies commonly raised
- Business owner's policy
- General liability
- Workers' compensation
Policies by what they pay for
The policy names, in plain terms
Insurers sell the same cover under different names, and one name can hide very different limits. What matters is what a policy pays for and what it leaves out.
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General liability
Claims that the business injured someone who is not an employee, or damaged their property, plus the legal defence that comes with them.
Often called commercial general liability, or CGL. -
Professional liability
Claims that advice, a service or a deliverable was wrong, late or negligent and caused a client a financial loss.
Also sold as errors and omissions, or E&O. -
Commercial property
Damage to the building, stock, fittings and equipment the business owns or leases, from fire, theft and other covered events.
Business interruption is often added to it. -
Business owner's policy
General liability and commercial property bundled into one policy, sold to smaller, lower-risk firms.
Usually shortened to BOP. -
Workers' compensation
Medical costs and lost wages for employees hurt on the job. Most states require it once a business has employees.
Who must carry it is set state by state. -
Commercial auto
Vehicles owned by the business or driven for its work. A personal auto policy can exclude business use.
Hired and non-owned auto covers staff using their own cars. -
Cyber liability
The costs of a data breach or cyber attack: notifying customers, restoring systems and claims from people whose data was exposed.
Relevant to any firm holding customer data. -
Product liability
Claims that something the business made, sold or served caused injury or damage after it left the premises.
Sometimes included within general liability.
Ground rules for every trade
Plain terms, and no scorecards
Not insurance advice
Which policies a trade commonly carries is general information. What your business needs is a question for a licensed agent or broker who can see the details.
No scores or rankings
No ratings out of ten, no star counts and no tier boards. Where one option suits a trade better, the reason is said in words.
Prices carry a date
Where a premium or a fee is quoted, it comes with its source and the date it was read, because insurance pricing moves.
Commissions are disclosed
Some links may earn a commission. That never changes what a policy covers, and the affiliate disclosure explains how it works.
Questions, trade by trade
What a small business owner asks about cover
Every trade comes back to the same handful of questions. The answers differ by industry, by state and by the size of the business.
- Which policies does a business in my trade usually carry?
- Which cover can a client, a landlord or a state require before work starts?
- Is a business owner's policy enough, or does my trade need more?
- When does a small business need workers' compensation?
- Does a personal car policy cover driving for work?
- What makes premiums go up or down for a business like mine?