Starting a new business takes courage, planning and plenty of hard work. Whether you’re chasing a lifelong dream or seizing a brand-new opportunity, there’s a lot to think about before opening your doors.
And while your to-do list may be long — permits, branding, hiring and more — insurance is one thing you don’t want to put off.
The right insurance doesn’t just protect your bottom line. It gives you peace of mind, builds credibility with clients and partners, and sets your business up for long-term success.
Here’s a simple guide to the core insurance policies most new business owners should consider, with tips on what type of businesses benefit from each one.
1. General Liability Insurance
General Liability protects against third-party claims of bodily injury, property damage and personal injury (like slander or libel). If a customer trips and falls in your store or your employee accidentally damages a client’s property, this coverage helps pay for legal fees, medical bills and settlements.
Who needs it? Just about everyone. It’s a must-have for brick-and-mortar businesses, contractors, mobile service providers and anyone who interacts with the public.
2. Commercial Property Insurance
If you rent or own a physical location or have valuable business equipment, this policy helps protect your assets from things like fire, vandalism and theft. Coverage typically includes your building (if you own it), inventory, furniture, computers and other physical property.
Who needs it? Retail stores, restaurants, salons, offices, warehouses and even home-based businesses with inventory or high-value tools.
3. Workers’ Compensation Insurance
Maryland law requires you to carry workers’ comp insurance if you have even one employee. This policy covers work-related injuries or illnesses, including medical bills and lost wages.
Who needs it? Any business with employees—even part-time workers or family members on the payroll. Industries like construction, hospitality, and childcare have particularly high risks for injuries on the job.
4. Business Auto Insurance
If you or your employees drive for business — whether in company-owned vehicles or personal ones — this coverage is essential. Most personal auto policies exclude business use, so don’t assume you’re protected.
Who needs it? Landscapers, realtors, contractors, delivery businesses and any company that uses vehicles for work-related tasks.
5. Professional Liability Insurance (Errors & Omissions)
If your business offers advice, consulting or professional services, this policy protects you against claims of mistakes, missed deadlines or bad advice. Even if you didn’t do anything wrong, legal defense costs can add up quickly.
Who needs it? Consultants, accountants, IT specialists, marketers, insurance agents and other service professionals.
6. Cyber Liability Insurance
Data breaches and cyberattacks are on the rise. And small businesses are often the most vulnerable. This coverage helps cover the cost of recovering lost data, notifying affected customers, managing public relations and handling legal liability.
Who needs it? Any business that collects customer data, takes online payments or operates a website. Think online retailers, healthcare providers, law firms and financial professionals.
No two businesses are exactly alike. There’s no one-size-fits-all approach to insurance. At Edward L. Sanders Insurance Agency, we specialize in helping business owners find coverage that fits their goals, industry, and budget.
We’ll walk you through your options, explain the risks, and help you build a plan that protects what you’re building — so you can focus on growing your business with confidence.