You probably didn’t become an entrepreneur to learn about new types of insurance. Neither do most people. Around three in four business owners can’t explain what the most common insurance policies cover, according to a 2025 survey by insurance company Hiscox.

You definitely don’t have to know it all — that’s what you have NerdWallet for! But if you take five minutes right now to read the basics, you’ll have a better idea about what you need and how much it will cost.

You may need insurance to:

These contracts usually call for general liability insurance. That protects you if a third party, like a customer or another business, accuses you of harming them or their property — think a slip-and-fall lawsuit or an accusation that you stole a competitor’s idea.

Every state has laws regulating workers’ comp. This is the insurance that covers you if one of your employees gets injured on the job. It pays for your employee’s medical bills and lost wages while they recover.

In general, you probably don’t need workers’ comp until you have at least one employee other than yourself.

Not quite. Depending on what you do, you might also need:

General liability insurance will not cover damaged or stolen items. If your business has stuff, make sure you get property insurance too

If you rent space or have inventory, get a business owner’s policy. This package combines general liability insurance with property insurance. You might also be able to tack on professional liability or cyber coverage. Here are NerdWallet’s recommendations.

Last month, online business insurance brokerage Coverdash shared some pricing data for its users with me. Here are the median monthly costs for a few different types of small businesses.

Consultants don’t interact with as many people as gyms do, so they have a lot less general liability exposure. That usually means lower premiums. And since there are fewer ways to get seriously injured in a restaurant than on a landscaping crew, restaurants generally pay less for workers’ comp than landscapers.

Want to get a general sense of how much insurance will cost for your business? Get a few online quotes. Each one should only take a few minutes. Start with Chubb, Ergo Next and biBERK.

Is your business already operating? It’s time to get insurance. If not, you have my permission to skip this section.

There are two ways to get insurance: buy it online or work with an agent. Both have pros and cons.

My recommendations for shopping online:

Want an agent? Ask your friends and neighbors for a recommendation or search for offices near you.

One important distinction: State Farm, Farmers, Allstate and Philadelphia Insurance use captive agents. These agents can only sell policies from that specific insurance company. That’s not necessarily a bad thing. Think of it like Trader Joe’s, which more or less only sells its house brands. Most of it is great! But you also can’t compare two similar items to see which box has more cookies, costs less, etc.

Go with an independent agent if you can. They can sell policies from several different insurance companies, which might help you get cheaper or better coverage. Independent agencies usually use a person’s name, like “Smith Insurance Services,” or a name not tied to a specific insurer, like “XYZ Insurance Group.”

Every quarter, the National Association for the Self-Employed chooses four members to win up to $4,000.

You’ll submit these documents to apply:

To qualify, you must be a NASE member. Membership starts at $11.95 per month or $120 per year. Students and veterans get a huge discount — membership is just $25 or $99 per year, respectively. In addition to the chance to apply for grants, members get access to NASE’s internal experts in business law, IT, finance and more.

If you’re a monthly member, you need to have been a member for 90 days before your application will be considered. Annual members and veterans can apply right away.

Click here to see all the details and join NASE. Applications received in January, February and March will be reviewed in April. NASE funds grants 30 days after receiving winners’ signed legal documents.

Check out our regularly updated list of more than 55 grant opportunities.

Last week, the Supreme Court struck down most of the Trump administration’s tariffs. The ruling might mean that the government owes businesses billions of dollars in refunds. Here’s the news from my colleague Anna Helhoski.

Without tariffs, the cost of buying goods from abroad should fall. Hopefully, that will bring business’s bills down. Shipping might get faster if goods are no longer caught up in customs.

But if you’ve already paid tariffs, it’s not clear how you can recoup your money. Don’t count on a refund anytime soon — getting one could take years. And the Trump administration has already announced plans to levy new tariffs under different laws.

My advice for now: Assume tariff rules will change a few more times in the next few years. It’s probably not worth it to try to game the system. Instead, stay focused on building relationships with reliable suppliers.

What questions do you have about tariffs? I’d love to take them to an expert. Reply to this newsletter or email me anytime at [email protected].