Small-business insurance, answered

Some of it, in some situations. Workers’ comp is mandated by most states once you have employees. General liability usually isn’t a legal requirement, but your clients, landlord, or a licensing board often make it a practical one — no certificate, no contract.

An LLC or sole-prop structure protects your personal assets from business debts, but it doesn’t pay a claim — insurance does. Most solo operators still carry general liability because clients and venues require it, even when the law doesn’t.

Usually not by law — sole proprietors and single-member LLCs with no employees are generally exempt, though you can often opt in. But general contractors and clients frequently require it regardless, and in the four monopolistic states it’s bought only from the state fund. Check your state in the coverage checker.

Ohio, North Dakota, Washington, and Wyoming sell base workers’ comp only through a state fund — private carriers and marketplaces can’t write it there. If you hire in one of these states, you buy that coverage from the state, not from a quote comparison.

$1 million per occurrence / $2 million aggregate is the common minimum for general liability on commercial contracts — written as $1M/$2M, occurrence first. Your actual contract may ask for more, or to be named as an additional insured.

Insurance pays for accidental harm you cause (a client’s damaged property, an injury). A bond guarantees you’ll deliver or behave — a janitorial or license bond pays the client if you don’t, and you repay the bond company. Many cleaning and trade contracts ask for both.

Often not. Personal auto policies commonly exclude business use, so if you drive for work you may need commercial auto or a hired-and-non-owned endorsement. If a claim happens on the job, a personal policy can deny it.

Generally no. GL covers third-party bodily injury and property damage — not redoing your own faulty work. That gap is why service and advice businesses add professional liability (errors & omissions).

Often yes. Many marketplaces and digital-first carriers issue a certificate of insurance within hours of binding a policy, and can add an additional insured on request. Speed to a COI is a real reason to compare providers.

It depends on what you sell and store. E-commerce sellers carry product liability for what they ship; anyone holding customer data or taking payments weighs cyber. Some marketplaces require seller coverage above certain volumes — verify your marketplace’s current rules.