What business insurance coverage do I need?

State law sets the minimums, but most companies need general liability before professional liability before management liability.

by Komodo · Updated Oct 8, 2026

On this page

What coverage does almost every business need?
Do I need professional liability insurance?
Do I need management liability insurance?
What coverage is required by law or contract?

Coverage	Illustrative protection	You likely need it if
General liability	Injuries and property damage you cause	You have an office, visit clients or sign contracts that require it
E&O	Claims that your work or software caused a client loss	You sell services or software to other businesses
Cyber	Data breaches, ransomware and the costs that follow	You hold customer data or run on email and cloud systems
D&O	Lawsuits against your directors and officers	You have outside investors or a board
Crime	Employee theft and payment fraud	Your team can send payments or handle client money

What coverage does almost every business need?

Almost every business with an office, clients or contracts needs general liability, which the SBA describes as protection against bodily injury, property damage and the lawsuits that follow.

Do I need professional liability insurance?

You need professional liability if a mistake in your service or software could cost a client money; the SBA defines it as protection against losses from errors and negligence.

Do I need management liability insurance?

You need management liability once you have investors, employees or money moving through your accounts, because D&O and crime coverage protect the company and its leaders from those risks.

What coverage is required by law or contract?

State law sets the floor for employee coverage, and contracts usually set the limits, so check both before you choose coverage.

Workers' compensation, unemployment and disability insurance once you have employees, which the SBA lists as required; rules vary by state.

Limits named in your customer contracts and MSAs.

Coverage your office lease requires.

Coverage your investors or lenders require.

Once you know which lines you need, use the business insurance quote checklist to gather what carriers will ask for.

Not sure which lines you need?

Describe what your company does, see which coverages apply and compare quotes side by side.

Map your coverage

Sources

U.S. Small Business Administration, Get business insurance

Federal Trade Commission, Cybersecurity for Small Business

National Association of Insurance Commissioners, Small Business Insurance

Related guides

How do I get business insurance quotes?

Which business insurance quote should I pick?

What do these 25 common business insurance terms mean?

This guide is educational information, not insurance advice.