RETURN to Small Business Resources
Getting business insurance isn’t just a box to check—it’s how you protect everything you’re building from lawsuits, accidents, and unexpected losses. Here’s a clear, practical way to approach it as a small business owner:
1. Understand What Insurance You Actually Need
Start by identifying your risks. Different businesses need different coverage.
Common types include:
- General Liability Insurance – Covers injuries or property damage (e.g., a customer slips at your location).
- Professional Liability Insurance (Errors & Omissions) – Protects against mistakes or negligence in services.
- Commercial Property Insurance – Covers your building, equipment, and inventory.
- Workers’ Compensation Insurance – Required in most states if you have employees; covers workplace injuries.
- Commercial Auto Insurance – If you use vehicles for business.
- Business Owner’s Policy (BOP) – A bundled package (usually general liability + property) at a lower cost.
👉 For example, if you’re a photographer, general liability + equipment coverage + possibly professional liability would be key.
2. Check Legal Requirements (Especially in Ohio)
In Ohio:
- Workers’ comp is mandatory if you have employees (through the Ohio Bureau of Workers’ Compensation).
- Certain professions require specific insurance (contractors, healthcare, etc.).
- Some landlords or clients may require proof of insurance before working with you.
3. Assess Your Risk Exposure
Ask yourself:
- Do customers visit my location?
- Do I give professional advice or services?
- Do I own expensive equipment?
- Could I be sued?
The more “yes” answers, the more coverage you need.
4. Gather Your Business Information
Before getting quotes, have this ready:
- Business structure (LLC, sole prop, etc.)
- Revenue estimates
- Number of employees
- Industry type
- Equipment value
- Business location
This helps insurers price your policy accurately.
5. Shop Around for Quotes
You can get insurance in three main ways (see the list of Chamber members who provide insurance):
Option A: Direct Providers
Option B: Traditional Insurance Companies
Option C: Independent Insurance Agents (Recommended)
An agent can compare multiple carriers and tailor coverage to your business.
6. Compare Policies Carefully
Don’t just look at price—focus on:
- Coverage limits (how much they’ll pay)
- Deductibles (what you pay out of pocket)
- Exclusions (what’s NOT covered)
- Bundling discounts (BOP policies can save money)
Cheapest isn’t always best—gaps in coverage can cost far more later.
7. Purchase and Get Proof of Insurance
Once you choose a policy:
- Pay your premium (monthly or annually)
- Receive a Certificate of Insurance (COI)
You’ll need this for:
- Contracts
- Leases
- Client work
8. Review and Update Annually
As your business grows:
- Revenue increases
- You buy more equipment
- You hire employees
👉 Update your policy so you’re not underinsured.
Practical Tip
A lot of small business owners either:
- Overbuy coverage they don’t need, or
- Underinsure and risk major losses
A good insurance agent can prevent both.
