Starting your own business is an exciting journey—but it comes with risks. Whether you’re opening a retail shop, running a consulting firm, or launching a home-based operation, having the right insurance coverage can be the difference between long-term success and financial disaster.
At Eugene C. Yates Insurance Agency, we’ve helped Sacramento business owners navigate the complexities of insurance for over 75 years. Here’s a breakdown of the essential insurance policies every small business should consider.
1. General Liability Insurance
This is the foundation of business insurance. General Liability protects your business if someone gets hurt on your premises, or if you accidentally damage someone else’s property. It also covers legal fees if you’re sued over advertising injuries like libel or slander.
Why it matters: Many landlords and clients require it before doing business with you.
2. Commercial Property Insurance
Whether you own your building or rent a space, this policy covers your physical assets—like inventory, computers, and office furniture—against fire, theft, and natural disasters.
Tip: If you want to bundle this with General Liability, consider a Business Owner’s Policy (BOP).
3. Business Owner’s Policy (BOP)
A BOP combines General Liability and Commercial Property into one convenient and cost-effective package. It’s ideal for most small to mid-sized businesses and can often be customized to include other coverages like Business Interruption.
Best for: Retail shops, restaurants, offices, and home-based businesses.
4. Workers’ Compensation Insurance
In California, it’s legally required to have workers’ comp insurance if you have even one employee. This policy covers medical expenses and lost wages if your employee is injured on the job.
Note: Even if your team is small, the liability without this coverage can be significant.
5. Professional Liability Insurance (Errors & Omissions)
If your business provides services or professional advice, you’ll want this policy. It protects against claims that your services caused a financial loss—even if it wasn’t your fault.
Industries that need this: Consultants, accountants, marketing professionals, real estate agents, and more.
6. Commercial Auto Insurance
If you or your employees drive for business—whether it’s making deliveries or visiting clients—your personal auto policy likely won’t cover accidents. Commercial Auto Insurance steps in to protect your business on the road.
7. Cyber Liability Insurance
Data breaches, ransomware, and phishing scams are on the rise. If your business stores customer data or accepts credit card payments online, Cyber Liability Insurance can cover recovery costs, notification expenses, and potential lawsuits.
8. Product Liability Insurance
For businesses that manufacture, distribute, or sell products, this insurance protects against claims of bodily injury or property damage caused by your product. Even a single defective product can lead to a costly lawsuit.
9. Business Interruption Insurance
What happens if a fire or disaster forces you to temporarily close? This policy helps cover lost income, payroll, and ongoing expenses during the downtime.
10. Employment Practices Liability Insurance (EPLI)
As your team grows, so does the risk of employment-related lawsuits. EPLI helps protect your business from claims of wrongful termination, discrimination, harassment, and more.
Final Thoughts
Choosing the right insurance for your business isn’t just about checking boxes—it’s about protecting what you’ve worked hard to build. At Eugene C. Yates Insurance Agency, we offer customized insurance solutions from top carriers, tailored specifically to your industry, budget, and goals.
Let our Sacramento-based agents help you find the right coverage so you can focus on growing your business with peace of mind.
Need a quote? Contact us today or stop by our local office—we’re here to help!