How to get business insurance and the top mistakes to avoid

How to get business insurance

To get business insurance, start by identifying the risks and requirements that apply to your business. Choose coverage based on how you operate, compare quotes from an online marketplace, carrier, or independent agent, and review policy limits and exclusions before you buy—not just the price.

1. Identify your legal requirements and risks
   Insurance needs can come from state rules, your industry, and the contracts you sign. Workers’ compensation is required for many employers once they hire employees, although rules and exemptions vary by state. If your business uses vehicles for work, you may need commercial auto coverage. Licensed professionals may need professional liability coverage, while leases, lenders, and client contracts often require a certificate of insurance or specific coverage limits.
2. Decide which coverage types fit your business
   Your coverage should reflect the way your business works day to day. A home-based consultant may have different risks than a contractor with employees, tools, vehicles, and customer job sites. Consider whether you need general liability, a business owner’s policy, professional liability, workers’ compensation, commercial auto, commercial property, cyber liability, or another specialized policy.
3. Gather quotes from more than one source
   Business owners typically shop in one of three ways: through an online insurance marketplace, directly from an insurance carrier, or with an independent agent or broker. An online marketplace can make it easier to compare multiple options, while an independent agent may be particularly helpful for specialized, higher-risk, or more complex businesses. You can explore business insurance options through Nav.
4. Compare coverage — not just the premium
   A lower-priced quote may have lower limits, a higher deductible, or exclusions that leave important risks uncovered. Review what each policy covers, what it excludes, the liability limits, deductible, available endorsements, and whether it meets the requirements in your lease, loan agreement, or client contract. You may also want to review the insurer’s financial-strength ratings and claims reputation.
5. Buy the policy and request a certificate of insurance
   Once you choose a policy, keep a copy of the declarations page, policy documents, renewal date, and insurer contact information. Ask for a certificate of insurance, or COI, if a client, landlord, lender, or vendor needs proof that your coverage is active. A COI summarizes coverage in force at that time, but it is not a replacement for the full policy.
6. Review coverage every year and re-shop on a cycle
   As your business grows and changes, your insurance needs will evolve. Set an annual reminder to review coverage before renewal, especially if you hire employees, add vehicles, move locations, take on larger contracts, increase revenue, or change services. Consider getting fresh quotes every two to three years, or sooner after a major business change, so you can confirm your policy still fits your needs.

What insurance does your business need?

The right insurance is not one-size-fits-all. It depends on how your business operates, where you work, what property you own, whether employees or customers visit your space, and the services you provide. A home-based consultant may have different risks than the same consultant meeting clients at an office, hiring employees, storing customer data, or driving to client sites. Here are some types of insurance you should consider: 

• General liability insurance helps cover certain third-party claims involving bodily injury, property damage, and personal or advertising injury connected to your business operations.
• Business owner’s policy (BOP) bundles general liability and commercial property coverage, and it often includes business income coverage for a covered loss that interrupts operations. It’s where many small businesses start because it combines common protections in one policy.
• Professional liability insurance — also called errors and omissions, or E&O — can help if a client claims your business made a professional mistake, gave negligent advice, or failed to deliver services as promised.
• Workers’ compensation insurance can help cover employees’ work-related injuries or illnesses, including medical care and lost wages. Requirements vary by state and may depend on your number of employees, industry, and worker classifications.
• Commercial auto insurance can help cover accidents involving vehicles used for business. This may matter if you or employees regularly drive to client sites, make deliveries, transport tools or inventory, or use company-owned vehicles.
• Commercial property insurance can help protect business-owned or leased property, such as a building, equipment, furniture, tools, and inventory, after covered events like fire, theft, or certain types of damage.
• Cyber liability insurance can help with costs related to certain cyber incidents, including data breaches, network-security events, extortion threats, and customer-notification obligations.

A freelance designer working alone from home may need professional liability coverage and protection for business equipment, for example. If that same designer rents a studio where clients visit, hires staff, carries expensive equipment, and stores customer payment information, then a BOP, workers’ compensation, cyber coverage, and other protection may also make sense.

5 business insurance mistakes to avoid

It is tempting to treat insurance as another bill to cut. That approach can backfire, particularly when the quote that looks best leaves out something your business needs. The absolute worst time to figure out that your insurance is lacking is when you file a claim. 

Telling an agent that price is all that matters 

There is nothing wrong with having a budget. But when the conversation begins and ends with “What’s the cheapest policy?” the result may be a quote with lower limits or coverage removed to get the number down. 

Look at what is behind the premium. One policy might include coverage for business income after a covered loss, while another does not. One may cover certain work away from your office, while another limits it. Those differences are easy to miss if you only compare the bottom line. The cheapest option can become a Swiss cheese policy. It is technically insurance, but there may be holes in the places that matter most to your business.

Assuming a standard package fits your business

A policy designed for a general small business may be a reasonable starting point, but is not a substitute for explaining what you do. A photographer who works alone at home has a different exposure than one who rents a studio, hires assistants, carries gear to events, and accepts online payments. Both may call themselves photographers, but their insurance needs may not look much alike. 

Before you buy, give the agent the details that change the answer: where you work, whether customers come to you, whether you drive for work, whether you have employees or subcontractors, and what property or customer data you handle. Then ask, “What am I missing?”

Looking only at the company’s risks

Some problems do not stay neatly on the business side of the line. If you drive your personal vehicle between job sites, for instance, it’s worth checking whether your auto coverage matches that use and whether you need commercial coverage.

Owners in a partnership have another issue to consider. If one partner dies or can no longer work, the surviving owner may want the option to purchase that person’s stake instead of suddenly sharing ownership with an heir. A buy-sell agreement can establish what happens to an owner’s interest if they die, become disabled, retire, or leave the business. 

Life insurance may provide funds for the remaining owners to buy that interest, depending on how the agreement is structured. Because ownership agreements and life insurance can have legal and tax consequences, talk with qualified insurance, legal, and tax professionals before setting up a plan.

Overlooking the insurer’s prevention resources

A policy can be useful even before a claim happens. Some carriers provide workplace-safety materials, driver training, cybersecurity resources, or other guidance intended to reduce losses. Availability varies, so it is worth asking what comes with the coverage. The answer may not change your decision, but it’s free for you to use once the policy is in place.

Mindlessly auto-renewing every year

Insurance can silently become outdated. Maybe you bought more equipment, expanded your service area, hired someone, added a vehicle, or signed a contract with higher insurance requirements. Or maybe the business is the same, but the premium keeps creeping upward. 

Read the renewal documents each year. Every two or three years, get a few comparable quotes to check the market. Re-shop sooner if the business changes materially. The point is not to change carriers for sport; it is to make sure the policy still reflects the business you are actually running.

How much does business insurance cost?

Business insurance costs vary widely, but general liability and a business owner’s policy can give you a useful starting point. In 2025, new Progressive Commercial customers paid a national monthly average of $79 for general liability and $127 for a BOP. The Hartford reports averages of about $68 per month for general liability and $141 per month for a BOP among its small-business customers. 

Think of those numbers as a benchmark, not a promise. A solo graphic designer working from home will present a different insurance profile than a contractor with a crew, trucks, tools, and customer job sites.

Your premium may be affected by:

• Your industry and the type of work you perform
• Revenue, payroll, number of employees, and number of customers
• Business location and the property you own or lease
• Your claims history
• The coverage types, policy limits, deductibles, and endorsements you select
• Your company’s credit profile

There are a few ways to manage the cost without buying a policy with major gaps. If your business qualifies, a BOP can package general liability and commercial property coverage together. Choosing a higher deductible can reduce your premium, but only if you could comfortably pay that amount after a claim. Ask whether paying annually instead of in installments changes the total cost, and document workplace safety, driver-safety, cybersecurity, or other loss-prevention practices that may reduce your chance of a claim.

Be cautious with the lowest quote. It may cost less because it has lower limits, a larger deductible, or coverage removed from the policy. Compare the details before deciding that the least expensive option is the best deal.

Nav is not a lender or a credit bureau. Credit information is provided by third-party sources.

Where to buy business insurance

You can buy business insurance through an online marketplace, directly from an insurance company, or with help from an independent agent or broker. The best route depends on how complicated your business is, how quickly you need coverage, and whether you want help sorting through policy details.

Online insurance marketplaces

An online marketplace can let you submit one application and compare options from more than one carrier. This can be a practical starting point if you want to move quickly, review several quotes in one place, and get a sense of what coverage may cost.

Marketplaces are often a good fit for straightforward businesses that want speed and comparison. You can explore business insurance options through Nav to compare available coverage options.

Buying directly from an insurer

You can also get a quote from an insurance carrier directly, usually online, by phone, or through one of its dedicated agents. A direct purchase can work well if you already know the insurer you want to use or have a relatively simple, single-policy need.

The trade-off is that a carrier can show you only its own policies. You may need to request quotes from other insurers separately if you want a broader comparison.

Working with an independent agent or broker

An independent agent can offer policies from multiple insurance companies. A broker generally represents your business in searching the market for coverage and may be especially helpful when insurance needs are more complicated.

Consider this route if your business has higher-risk work, multiple locations, specialized equipment, employees, commercial vehicles, contract-driven coverage requirements, or several policies that need to work together. Ask how the agent or broker is compensated, which insurers they work with, and whether they have experience with businesses like yours.

Whichever route you choose, confirm that the insurer and the producer are licensed in your state. You may also want to check the insurer’s financial-strength rating and complaint history before purchasing coverage.

Bottom line

Getting business insurance is less about finding the lowest premium and more about making sure the policy covers the way your business actually operates. An LLC, corporation, or sole proprietorship definition does not determine every coverage need—your employees, vehicles, property, contracts, services, and customer interactions do.

A low-cost policy can potentially leave gaps in the claims most likely to disrupt your business. Keep your certificate of insurance handy, and check your business credit scores so you are prepared when lenders, landlords, clients, and other business partners ask for documentation.

Nav Prime can help you monitor your business and personal credit information in one place while you work toward a stronger financial profile.

Frequently asked questions