Business Plan Center

How does your industry affect your insurance needs?

Check out these factors to consider when determining your small business insurance plans.

Every industry brings unique challenges and potential risks that could affect the overall financial success of a business. Business owners often require additional coverage beyond a standard general liability, business owners' policy, and workers' compensation policy. Here are some examples of how insurance coverage varies based on your industry.

Construction and contracting

Contracting comes with unique risks. Whether you're starting a painting company or going into business as a master carpenter, you need an insurance agency that understands your requirements and has the resources to secure the coverage you need. Examples of risks to your business are seasonal slowness, equipment damage, injuries to third parties and workers, faulty work, and missed deadlines. Consider additional coverage to protect your business:     

  • Contractors errors & omissions insurance

  • Builders risk insurance

  • Products and completed operations insurance

  • License or permit bond

Food services

Whether you own a thriving catering service or a quaint coffee shop, you know that serving food has challenges. When you're managing inventory, sanitation requirements, and staff training, it's hard to find time to research insurance policies that fit your unique risks and meet your budget. Examples of risks to your business are liquor liability, food spoilage, fire damage, broken equipment, slips, and falls. Consider this additional coverage: 

  • Liquor liability insurance

  • Off-premises insurance

  • Hired & non-owned auto insurance

  • Food contamination coverage

Health care and fitness

Health care and fitness professionals are responsible for improving patients' and customers' lives. Even the most successful health care professionals encounter patients who may pursue legal action if their expectations aren't met. The specific insurance needs of your business will depend on the kind of work you do and the type of clients you serve. Examples of risks to your business are malpractice lawsuits, patient data breach/confidentiality, employee health and safety, faulty diagnostic equipment, and day-to-day business liabilities. Consider additional coverage: 

  • Professional liability insurance

  • Cyber liability insurance

  • Medical equipment insurance

  • Excess liability insurance

Information technology

Owners of IT businesses need technology insurance that covers risks specific to the technology function and industry. Your insurance needs often depend on the size of your company and the requirements outlined in your contracts and state laws. Examples of risks to your business are client data breaches, insufficient revenue, foreign travel, IT lawsuits, cash flow problems, and day-to-day business liabilities. Consider: 

  • Cyber liability insurance

  • Data breach coverage

  • Errors and omissions insurance

Professional services

It is essential to protect your business from the potential financial loss that could result in a lawsuit, regardless of the services you provide. Insurance specific to your industry helps your business run smoothly. Examples of risks to your business are documentation and record management risk, customer data breach, audit and financial risks, faulty equipment, and day-to-day business liabilities. Here are additional coverage options to consider: 

  • Hired and non-owned auto insurance

  • Equipment breakdown coverage

  • Errors and omissions insurance

  • Cyber liability insurance

  • Property insurance

Retail stores

Retail stores have a regular flow of customers, which creates risk exposures such as theft and injuries to customers or employees. It is in your best interest to get a comprehensive insurance policy. Examples of top threats to your business are theft (employee and third-party) and security risks, customer data breach, customer and employee safety, risk of inventory loss, and risk associated with company-owned vehicles. Explore the following additional coverage options:

  • Hired and non-owned auto insurance

  • Employee dishonesty insurance

  • Cyber liability insurance 

Even if your industry isn't mentioned here, you know that small business insurance coverage needs vary by industry. Ready to research your insurance options? Here are five things to know.