Launching and running a local business is an exciting venture that comes with its share of risks and challenges. As a local entrepreneur, safeguarding your investment and ensuring the longevity of your enterprise requires careful consideration of various factors, with insurance being a crucial component. ***

There are ten essential types of business insurance that every local entrepreneur should prioritize to protect their venture and promote long-term success.



1. General Liability Insurance. General liability insurance is the cornerstone of business insurance for local entrepreneurs. It provides coverage for third-party bodily injury, property damage, and advertising injury claims. This is fundamental in protecting your business from common liabilities that can arise in day-to-day operations.

2. Property Insurance. Property insurance safeguards your physical assets, including your business property, equipment, inventory, and more. It covers damage or loss caused by fire, vandalism, theft, and other perils. For local businesses with a physical presence, property insurance is essential for maintaining financial stability in the face of unforeseen events.

3. Business Interruption Insurance. It covers lost income and operating expenses if your business operations are interrupted due to a covered peril, such as a fire or natural disaster. It ensures that your business can weather the storm, both figuratively and literally.

4. Professional Liability Insurance. It protects against claims of professional negligence or failure to perform services as promised. For local entrepreneurs offering professional services, this coverage can mitigate the financial impact of legal claims.

5. Workers' Compensation Insurance. It is a legal requirement in many jurisdictions and is designed to protect your employees. It provides coverage for medical expenses and lost wages in the event of work-related injuries or illnesses. Local entrepreneurs must prioritize the safety and well-being of their workforce, and workers' compensation insurance is a key component of that commitment.

6. Commercial Auto Insurance. If your local business relies on vehicles for operations, commercial auto insurance is essential. It covers vehicles owned or used by the business, protecting against damages and liabilities resulting from accidents. Whether you have a fleet of delivery trucks or use vehicles for client meetings, this insurance safeguards your business on the road.

7. Cyber Liability Insurance. This covers losses resulting from data breaches, cyberattacks, and other cyber-related incidents. Given the prevalence of cyber threats, this insurance is vital for safeguarding sensitive business and customer information.

8. Product Liability Insurance. It covers legal costs and damages associated with injuries or property damage caused by your products. Even with rigorous quality control, accidents can happen, and product liability insurance offers a safety net.

9. Umbrella Insurance. It is excess liability coverage beyond the limits of other policies. It helps small businesses face larger or more complex risks. With an umbrella policy, you gain added peace of mind knowing that your business is shielded from significant financial losses.

10. Employment Practices Liability Insurance (EPLI). It covers claims related to employment practices, such as wrongful termination, discrimination, harassment, or violation of employment laws. As workplace dynamics evolve, having EPLI in place is a proactive measure to address potential legal challenges.

For the business owner, the complexities of business ownership require a comprehensive risk management strategy, and insurance plays a pivotal role in that strategy. As you build and grow your business, investing in the right insurance coverage ensures that your business remains resilient and positioned for long-term success.

Lindquist Insurance can help you cover your business liabilities. Our experienced and knowledgeable business liability and property team can find out the coverage you need.  Call (301) 694-0008 to speak to our licensed insurance agents for a consultation. 

We serve the Annapolis, MD, and Frederick, MD areas.

*** For more on business liability, visit the Maryland State Treasurer's FAQs website.