What insurance does a new business actually need?

Coverage follows risk, not a package name. Write down what could realistically happen in your business: somebody hurt in your space, a fire or a storm that takes out equipment or inventory, a mistake in your work that costs a customer money, an accident in a vehicle on the way to a job. That list is what you bring to an agent, and it keeps the conversation about your business rather than about a product.

Your landlord, your lender and some of your customers may each require specific coverage before you open or sign. If you hire, the state may too. Ask each of them for their requirements in writing, including whether they need to be named on your policy, before you shop. Buying the right thing once is far easier than fixing a lease or a contract later.

A homeowner's policy often leaves out business equipment, inventory and customers who come to the house. A personal auto policy may not cover a vehicle used for work. If you are starting from home or from your own truck, ask directly whether the business is covered, and get the answer in writing rather than in conversation.

What a policy does not cover matters as much as what it does, and so does the deductible you would pay first. Ask what is excluded and what a claim looks like from the first phone call. Then review the coverage whenever something changes, like a new hire, a new vehicle, a new location or a new service, and once a year even when nothing has.