Starting a small business is an exciting endeavor, full of potential and opportunities. 

However, with great potential comes significant risk. As a small business owner in Annapolis, MD, it's essential to protect your investment with the right business insurance policies. ***

Here are the top business insurance policies every small business owner should consider to ensure their enterprise is safeguarded against unexpected setbacks.

1. General Liability Insurance. This policy protects your business from various claims, including bodily injuries, property damage, and personal injuries such as slander or libel. Whether a customer slips and falls in your store, or you accidentally damage a client’s property during a service call, General Liability Insurance covers legal fees, medical expenses, and any settlements or judgments. In Annapolis, where tourism and local business interactions are frequent, this coverage is indispensable.

2. Commercial Property Insurance. This covers damage to your business property caused by events such as fire, theft, vandalism, and natural disasters. This policy can include buildings, equipment, furniture, inventory, and even landscaping. Given the historic and often weather-impacted buildings in Annapolis, having this insurance ensures that your business can recover quickly from physical damages.

3. Business Interruption Insurance. When unforeseen events disrupt your business operations, Business Interruption Insurance can be a lifeline. This policy covers the loss of income during periods when you cannot conduct business due to covered events like natural disasters or fires. It helps you cover operating expenses such as rent, payroll, and utilities, allowing you to focus on getting your business back on track without the added stress of financial burdens.

4. Workers' Compensation Insurance. If you have employees, Workers' Compensation Insurance is a legal requirement in Maryland. This insurance provides coverage for medical expenses and lost wages for employees who are injured or become ill due to their jobs. It also protects your business from legal complications arising from workplace injuries. Ensuring your employees are covered not only complies with state laws but also fosters a safe and supportive work environment.

5. Professional Liability Insurance. Also known as Errors and Omissions (E&O) Insurance, Professional Liability Insurance is essential for businesses that provide services or expert advice. This policy covers legal defense costs and settlements if a client claims your service caused them financial loss due to mistakes, negligence or inadequate work. In a service-oriented city like Annapolis, where consulting, financial advising, and professional services thrive, Professional Liability Insurance is crucial.

6. Commercial Auto Insurance. If your business owns or uses vehicles for operations, Commercial Auto Insurance is a must. This policy covers damages and liabilities arising from vehicle accidents. It includes liability coverage for bodily injury and property damage, collision coverage, and comprehensive coverage for non-collision-related incidents. Whether you’re making deliveries, transporting goods or visiting clients, this insurance ensures your business is protected on the road.

7. Cyber Liability Insurance. This protects your business from the costs associated with data breaches, hacking, and other cyber incidents. It covers expenses such as legal fees, notification costs, credit monitoring for affected customers, and public relations efforts to manage your business’s reputation. For small businesses in Annapolis that rely on digital operations and handle sensitive customer information, this policy is increasingly vital.

8. Product Liability Insurance. If your business manufactures, distributes, or sells products, Product Liability Insurance is essential. This policy protects against claims of injury or damage caused by your products. Even with rigorous quality control, there’s always a risk that a product could cause harm. Product Liability Insurance covers legal fees, settlements, and medical costs associated with product-related claims.

Running a small business in Annapolis, MD, is both rewarding and challenging. While you focus on growing your enterprise and serving your community, it’s crucial to have the right insurance policies in place to protect your business from potential risks. Consult with a local insurance expert to tailor these policies to your specific needs and safeguard your business’s future.

If you need guidance on business insurance, our licensed and experienced insurance agents at Lindquist Insurance can review your coverage with you and make sure your assets are fully covered. Call (301) 694-0008 to speak to our experienced and licensed insurance agents for a consultation and quote. 

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

*** For more information on commercial insurance for businesses, visit the State of Maryland website.