You need business insurance, bottom line. But do you know what type of coverage? How much coverage to buy? Start planning for success with an idea of how to approach the insurance buy with confidence.

You need business insurance, bottom line. But do you know what type of coverage? How much coverage to buy? Start planning for success with an idea of how to approach the insurance buy with confidence.


What Basic Insurance Does a Small Business Need?

There are so many insurance products and offers out there that it can start to feel overwhelming. You want to make sure your business is covered, but you don’t want to pay for anything unnecessary.

The four types of insurance every business needs are property insurance, liability insurance, business vehicle insurance and workers’ compensation insurance.

Commercial property insurance will protect you from theft and damages, and it is good to have even if your business operates out of your home. Homeowners insurance might not cover everything your business needs.

Liability insurance is necessary to protect you from negligence lawsuits in case someone gets hurt.

If your business uses a car, van, or truck, you’ll need business vehicle insurance. Most standard vehicle insurance policies don’t cover commercial vehicles, so make sure yours will be covered by your existing policy or a new one.

Lastly, if you have employees you will need to have workers’ compensation insurance in case there is a workplace accident.

You can read more in detail about each of these types of business insurance here. It may seem like a lot to keep track of, but if you bundle your insurance policies under a Business Owner’s Policy, you can often get lower premiums which will save you money upfront.

Do You Really Need All That Business Insurance?

Insurance premiums can add up, especially with all the kinds of policies and range of coverage your business may need, but it is worth it down the road. If you forgo buying business insurance, it will cost you much more out of pocket when something bad happens.

Specialty policies for natural disasters (such as earthquakes, forest fires, tornadoes, etc.) add more cost in the short term on top of the basics, but when an emergency happens you’ll save your business thousands or even tens of thousands of dollars. If you don’t live in a vulnerable area, you might not need specialty disaster coverage – always talk with a business advisor to determine the right coverage for your business.

The good news: business insurance is tax deductible! You can save a lot of money by writing off your business insurance during tax season. Remember to talk to your certified accountant before attempting to deduct any of these – we are not tax professionals and are not offering tax advice. If you need help doing your taxes or would like free tools, check out these 5 affordable tax tools.


For information about Opportunity Fund’s small business loans, please contact us at 866-299-8173 or  For questions about your existing loan or other customer service questions, please contact us at 866-299-8173 or

Loans are subject to credit review. Additional documentation may be required for credit approval. We are an Equal Opportunity Lender. Loans will be made or arranged pursuant to California Department of Corporations Finance Lenders License #6050609.

Opportunity Fund is tackling economic inequality so that hard work and perseverance means a shot at getting ahead, not just struggling to get by. Our programs are supported by a community of donors and investors whose contributions help to fund small businesses, support college students, and build stronger families and vibrant neighborhoods. Since 1994, the team has deployed $700 million and helped thousands of families earn, save and invest in their own futures. Opportunity Fund has earned a 4-star rating from Charity Navigator, America’s largest independent charity evaluator, for our commitment to accountability and transparency.

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