What Insurance Does a Small Business in Baltimore Need?
Whether you're operating a plumbing company, running a commercial cleaning business, opening a retail store, or providing professional services, owning a business comes with risks.
A single accident, property loss, or liability claim can create a major expense. But not every business needs the same combination of policies. The right coverage depends on your operations, employees, equipment, vehicles, contracts, and industry.
General liability insurance
General liability insurance can help address certain third-party claims involving bodily injury, property damage, and related defense costs, subject to policy terms.
For example, a customer injured on your premises or accidental damage to someone else's property might create an exposure. Some landlords and commercial customers require proof of general liability coverage before they sign an agreement.
Business Owners Policy (BOP)
A Business Owners Policy typically packages general liability and commercial property coverage for eligible businesses. Depending on the policy, it may also include business interruption protection.
A BOP is not a catch-all: workers' compensation, professional liability, and commercial auto generally require separate coverage or arrangements.
Workers' compensation insurance
Most Maryland employers with one or more employees are required to carry workers' compensation insurance, subject to legal exceptions. Workers’ compensation coverage may provide benefits for qualifying work-related injuries and occupational diseases.
Workers' compensation is not the same as voluntary employee benefits. An employer's statutory coverage obligations still apply even if it offers supplemental employee-paid accident or disability plans.
Commercial auto insurance
If your company owns vehicles or regularly uses vehicles for business operations, review whether commercial auto insurance is needed.
Contractors, delivery operations, and mobile service businesses should be especially careful. Personal auto policies do not automatically cover every business use. Also consider hired and non-owned auto exposure if employees drive personal or rented vehicles for work.
Professional liability and cyber insurance
Professional liability, also called errors and omissions insurance, can respond to some covered claims that your professional services caused financial harm. It is particularly relevant when customers rely on your advice or specialized work.
Cyber insurance may help businesses manage some covered costs arising from data breaches, cyberattacks, and other digital incidents. Coverage and exclusions vary widely.
Businesses that transport tools or equipment might also need inland marine or specialized equipment coverage.
How much insurance should your business have?
A small accounting practice has very different exposures from a roofing company or a restaurant. Contracts may also require specific insurance limits and additional insured endorsements.
Before requesting a quote, gather your legal business name, operations description, estimated revenue, payroll, employees, vehicle information, equipment details, and any insurance requirements imposed by your clients or landlord.
At Lion Insurance Group, we help businesses understand insurance options based on what they actually do, not just a generic category.
Ready to discuss your situation? Explore Maryland contractor insurance or review our business insurance options.
Ready to review your business coverage? Request a business insurance quote or explore our business insurance services.
Educational information only. Coverage availability, exclusions, limits, and eligibility vary by carrier and policy. Licensing, insurance and contractual requirements depend on the business and applicable law.
Sources: Maryland Insurance Administration: business insurance; Maryland Workers’ Compensation Commission: insurance requirements and compliance.