Most entrepreneurs don't think about insurance until, they need it, and by then it's too late.

I sure didn't.

It wasn't until a client asked me if I had it that it even entered my mind. Then, I had to quickly find a policy not really knowing what I was buying so I could confirm, "yeah, I'm covered."

The truth is, there are a lot of different types of business insurance and what is right for you depends upon where you are, what you sell, how you sell it, and who you sell it to, among other factors.

Here's a run-down of some of the most common types of business insurance and who might need it:

Professional Liability Insurance (Errors & Omissions, E&O)

• What it covers: Claims of negligence, mistakes, or failure to deliver professional services as promised.
• Who needs it: Service-based businesses—consultants, accountants, architects, engineers, IT professionals, healthcare providers, and others who give advice or provide specialized services.

General Liability Insurance

• What it covers: Bodily injury, property damage, personal and advertising injury claims brought by third parties (such as customers or vendors).
• Who needs it: Nearly all businesses, especially those with physical locations, customer traffic, or public-facing operations—like retailers, restaurants, contractors, and consultants.

Workers’ Compensation Insurance

• What it covers: Medical expenses, lost wages, and rehabilitation for employees injured or made ill on the job.
• Who needs it: Any business with employees. Most states legally require this coverage, so check to be sure you're in compliance with state regulations.

Business Income (Interruption) Insurance

• What it covers: Lost income and ongoing expenses if your business can’t operate due to covered property damage.
• Who needs it: Businesses that rely on a physical location or equipment to generate income, such as restaurants, manufacturers, and retailers.

Cyber Liability Insurance

• What it covers: Losses from data breaches, cyberattacks, and related legal costs.
• Who needs it: Businesses that handle sensitive customer data, process payments online, or rely heavily on digital operations (e-commerce, healthcare, financial services).

Product Liability Insurance

• What it covers: Legal fees, defense costs, and settlements if your product causes harm, injury, or property damage to someone else.
• Who needs it: Any business that manufactures, sells, or distributes products of any kind, including manufacturers, wholesalers, retailers, distributors, importers, and exporters.

In my experience, the best way to find the right insurance at the best prices is to connect with a great business insurance broker. Ask for referrals from your network, accountant, financial advisor, or local chamber of commerce.

Don't just go without unless you're making a conscious decision to do so understanding the potential risks and impact.

Hey, is there something you'd like to know more about running or building your business but don't know who to ask? Try me. If I don't know the answer, odds are I know someone who does.
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Until next time,

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P.S. If you missed it, last week I suggested a Spring Break for us all.

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