Business Insurance Explained – [2020 Guide]

Every business, at some point will eventually need insurance. So let’s learn about it!

I started an ecommerce company shipping Scorch Markers direct to consumers and retailers.

When we got our product accepted into Michael’s, they required us to provide proof of liability insurance. I had no idea what this meant.

It was overwhelming.

Michael’s wanted to make sure that if we got sued, we had insurance to protect us. After all, we are the manufacturer, so the product is ultimately our responsibility.

That was the day I started doing research on business insurance. 

It was not easy!

Let me save you 9 phone calls and 36 hours of research and  6 conversations.

in this guide I will show you:

  • what business insurance is
  • businesses that need insurance
  • examples of different insurance policies
  • how to get insurance
  • how much business insurance costs

Let’s get started.


Business insurance is a prepaid team of attorneys. It’s that simple. 

You can get specific types of business insurance for just about anything.

Getting sued is a very real possibility, in any business. We purchase insurance so that we can have the insurance company’s legal team fight the battle for us.

Pay a little each month so you can have a team of attorneys ready to step in and help when needed. 

Insurance companies don’t want to pay out. They’ll fight for you.


Think about it like this – if there is a high risk of someone suing you or your company, then you need to have insurance. 

Here are some examples of industries where insurance is a priority:

  • construction / general contracting / handyman / roofing
  • service industry
  • restaurants / food service
  • storefronts
  • manufacturing
  • delivery services
  • anytime you hold on to someone’s stuff (mechanics or computer repair)
  • if you interact with customers face to face
  • if you have employees
  • if you have a physical space or warehouse
  • if people come come in to your business
  • if your business goes into homes or other businesses

This list is just a small list of of who might need insurance right off the bat.

If you interact with people or the public, you need insurance.


  • Landlord Required Insurance – when you lease or rent commercial property, the landlord is going to require this
  • Workers Comp Insurance – mandatory if you have employees
  • Slip and Fall policy – can be the cheapest to satisfy landlord requirements, very basic liability coverage
  • Commercial Contractors & Janitorial – This is what most contractors get, including roofers which is mandatory
  • Care Custody and Control – when you hold on to someone’s property like mechanics or repair shops
  • General Liability Insurance – protection from a variety of events 


You can’t just call your car insurance company. Trust me, I tried and they had no idea what I was talking about.

You need a commercial insurance broker.

Insurance brokers work with many different insurance providers.

Their job is to find out what type of insurance you need, and help you purchase the plan that fits your needs most. 

Sometimes it means just workers comp. Sometimes it’s only a slip and fall policy. Sometimes it’s an umbrella policy and 5 other things. 

The point is this, you can’t do it alone. You need an insurance broker. 

If you don’t already have a broker to work with, feel free to reach out to mine.

His name is James Bender and he has a really cool voice. 

call or text 888-725-4613


Tell him Evan Sent you 🙂


Great question. It varies.

More risk = more cost.

I pay about $1400 a year to insure my employees.

I pay around $2000 per year to insure my business against liability.

I get $1,000,000 worth of coverage per occurrence.

I can get sued multiple times a year and have $1,000,000 worth of prepaid attorneys each time. 

If you think it’s worth it, give James a call.


James Bender

Commercial Insurance Broker