What each policy pays for, what it doesn't, and who usually needs it. Your agent will walk through the exact wording before you buy.
General liability
Protects the business when someone outside it claims you injured them or damaged their property. It is the policy most contracts and leases require.
Typically covers
A customer slipping in your shop
Damage you cause on a client's site
Legal defense costs
Advertising injury claims
Typically excludes
Injuries to your own employees
Your own property and tools
Professional mistakes
Common for
Contractors and trades
Retail and restaurants
Event and service businesses
Business owner's policy
A package that combines general liability, commercial property and usually business interruption. It's often the best value for small, lower-risk businesses.
Typically covers
Liability claims
Building, furniture and stock
Lost income after a covered loss
Typically excludes
Flood and earthquake
Vehicles
Workers' injuries
Common for
Offices and studios
Shops and cafés
Small landlords
Workers' compensation
Pays medical bills and a portion of lost wages when an employee is hurt on the job, and includes employer's liability. Most states require it once you have employees.
Typically covers
Medical treatment
Partial wage replacement
Rehabilitation
Employer's liability suits
Typically excludes
Independent contractors
Injuries under the influence
Customer injuries
Billing options
Pay-as-you-go with payroll
Annual with audit
Commercial auto
Personal auto policies often exclude business use. Commercial auto covers vehicles the business owns or employees drive for work.
Typically covers
Liability for accidents
Physical damage to vehicles
Hired and non-owned autos
Typically excludes
Tools stored in the vehicle
Unlisted drivers (varies)
Common for
Service trades with vans
Delivery and catering
Sales teams on the road
Cyber liability
Helps pay for the response to a data breach or ransomware event: forensic investigators, customer notification, credit monitoring and certain legal costs.
Typically covers
Breach response and forensics
Customer notification
Data restoration
Some extortion costs
Typically excludes
Known, unpatched issues (varies)
Upgrading your systems
Common for
Anyone taking card payments
Medical and financial offices
E-commerce
Professional liability (E&O)
Responds when a client says your advice, design or service caused them a financial loss, even if the claim turns out to be groundless.
Typically covers
Negligence and errors
Missed deadlines
Defense costs
Typically excludes
Bodily injury
Intentional wrongdoing
Prior known incidents
Common for
Consultants and agencies
Accountants and architects
Salons and estheticians
Commercial umbrella
Adds limits above your general liability, auto and employer's liability policies. Larger contracts frequently require $2M–$5M in total limits.
Typically covers
Claims that exceed underlying limits
Some gaps between policies
Typically excludes
Anything excluded by the underlying policy
Professional liability
Common for
Contractors on commercial jobs
Fleets
Busy venues
Descriptions are general summaries for education. Coverage, limits and exclusions vary by carrier and state and are governed by the actual policy forms.