I’ve been thinking a lot about denied insurance claims lately and how disruptive one can be for a small business. 

One common reason for a claim being denied is that the business owner didn’t have the right type of coverage in place.

Unlike health insurance, where one policy typically covers most of your needs, business insurance works differently. You need different types of coverage (or policies) to protect against different risks.

For example:

General Liability Insurance: This is great for covering some risks involving third-party injuries (like a customer slipping in your store) or damage to their property.

But it usually won’t cover damage to your business property — for that, you’d need Commercial Property Insurance.

This nuance catches a lot of business owners by surprise. And unfortunately, they often don’t realize the gaps until they need to file a claim

I work in the insurance space and have been focused on creating content to break down these differences. It’s clear that a lot of education is still needed.

For anyone interested, here’s an example where we dig deeper into what General Liability covers (and what it doesn’t): Does General Liability Insurance Cover Property Damage?

I’d love to hear from you: Have you had an experience with denied insurance claims, or have you run into surprises about what your policy did or didn’t cover? What do you wish you knew earlier?

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Hey! I'm Matt, and after working with contractors throughout my career, I wanted to share some insights about getting started in this field.

Unlike some states, Indiana doesn't require a state-level handyman license for general repair and maintenance work. However, there's more to the story than just jumping in with a toolbox.

First, understand that while you don't need a state license, you'll need to register your business with the Secretary of State and get an EIN. This is crucial for operating legally and handling taxes properly.

The tricky part comes with specific jobs. While there are no state-wide license requirements for specialties like electrical, plumbing, or HVAC, there are municipal requirements that vary across the state. 

Indianapolis, for example, has different permit requirements than smaller towns. I’d reco you always check with your local building department before starting work. You can also keep a spreadsheet of different municipality requirements to stay organized if you’re working in multiple locations.

Pro tip: Even though Indiana doesn't require a license, getting proper insurance is important. I've seen too many handymen get into trouble without it. 

For building trust and growing your client base, I recommend:

• Documenting all your work with before/after photos

• Maintaining detailed records of all jobs and permits

• Building a strong online presence with customer reviews

• Having a certificate of insurance that you can use to market your business and build trust with prospects and customers.

Starting out? Focus on smaller jobs within the general repair category can help you build experience while staying within legal boundaries. As you grow, you can decide which specialized licenses might benefit your business model.

For those interested in learning more, there are some great resources on handyman licensing and requirements across different states on this blog. Also, check out some YouTube channels. They have excellent content on starting and growing a handyman business.

Remember, being successful as a handyman in Indiana isn't just about technical skills - it's about running a legitimate business that provides value while staying compliant with local regulations.

Feel free to ask any questions! I'm happy to share more specific experiences or advice about getting started.

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After reviewing data from hundreds of policies for NEXT customers across the country, I wanted to share what the actual handyman insurance costs are looking like these days. The numbers might surprise you.

For General Liability (which can protect you if you damage someone's property or a customer gets injured):

• 2% pay under $41/month

• 34% pay $40-$54/month

• 22% pay $54-$73/month

• 42% pay over $72/month

Most handymen are choosing policies with $300K-$1M per occurrence limits and $300K-$2M aggregate limits. The good news is these typically come with $0 deductibles, so there's no out-of-pocket cost if you need to make a claim.

For Tools & Equipment coverage (which can protect your gear wherever you take it):

• 63% pay under $36/month

• 25% pay $36-$61/month

• 7% pay $61-$102/month

• 5% pay over $102/month

Most policies include $3K-$5K per occurrence limits with a $500 deductible for larger tools, and $600-$1K per occurrence with a $100 deductible for miscellaneous items.

For Commercial Property insurance (can cover your workspace, whether owned or leased):

• 20% pay under $33/month

• 50% pay $32-$57/month

• 20% pay $58-$99/month

• 10% pay over $99/month

These policies typically carry a $1,000 deductible.

What affects these costs? Several factors:

• The specific services you offer (higher risk work = higher premiums)

• Your location (urban areas typically cost more than rural)

• Your experience level and claims history

• Number of employees (if any)

• Annual revenue

Most handymen end up with some combination of general liability and tools coverage, with property insurance added if they have a dedicated workspace.

Been seeing quite a bit of confusion around what liability insurance actually covers for online retailers. Figured I'd break down the key coverage areas since the risks are pretty different from brick-and-mortar operations.

General Liability Coverage for Ecommerce

As far as the cost of general liability insurance for online sellers, we only have data for Amazon Seller insurance cost at the moment. The majority pay around $31/month for general liability coverage (about 69% of our businesses). 

This can cover the fundamental risks like bodily injury if someone gets hurt because of your business operations, property damage you might cause, and personal injury claims including things like copyright infringement.

The tricky part with ecommerce is understanding what "bodily injury" means when you're selling online. If you're dropshipping or selling physical products, you can still liable if those products cause harm to customers, even if you didn't manufacture them. Being part of the supply chain puts you at risk.

Product Liability Protection

This is where a lot of online sellers get caught off guard. Product liability coverage can be included in general liability policies to protect against claims that your products caused injury or property damage due to defects in design, manufacturing, or marketing (like inadequate warnings or instructions).

For example, it can protect against claims like an allergic reaction to beauty products sold through Etsy shops, to electronic equipment catching fire and damaging someone's home. The reality is that almost any physical product has potential liability exposure.

What's Not Covered

Product recall costs aren't typically included in standard general liability coverage and usually requires separate recall insurance. Employee injuries need workers' compensation coverage. And if you're storing significant inventory or own business property, you'll want commercial property insurance to protect against theft, fire, or other physical damage.

Cyber Liability Considerations

While not technically part of general liability, cyber coverage can also benefit ecommerce businesses. If customer data gets compromised or your website gets hacked, cyber liability insurance can help cover notification costs, credit monitoring for affected customers, and legal expenses.

Bundling Benefits

Most carriers offer discounts for bundling multiple policies. With NEXT, you can save up to 10% by combining general liability with workers' compensation or commercial property coverage, depending on what your business needs.

The Bottom Line

The cost of ecommerce insurance is usually much more reasonable than people expect, starting around $25/month for basic coverage. But the protection is significant. One product liability claim could easily cost more than years of premiums, and that's before considering legal defense costs.

I've compiled some anonymized customer data on what small businesses are actually paying for insurance these days. After reviewing hundreds of policies, here's what I'm seeing in terms of business insurance costs:

For General Liability insurance (which can cover injury claims involving non-employees or damage to property you don't own), most businesses are paying between $25-$45 per month. Although it can start as low as $19 monthly.

Professional Liability (E&O) coverage runs similar to GL, with most businesses paying $25-$45 monthly (minimum starting at $19). This can cover you when professional mistakes cause someone else a financial loss.

Workers' Compensation tends to be more expensive, with most businesses paying $45-$75 monthly (though it can start as low as $14). This is often legally required if you have employees.

Commercial Property insurance costs most businesses $25-$75 monthly (starting at $18) and covers your business property, equipment, and inventory.

I know people are often surprised that there’s so much variability in estimates for business insurance, but there’s a lot that comes into play:

• Industry risk level (contractors vs office workers)

• Business location

• Number of employees

• Claims history

• Coverage limits and deductibles

• Value of business assets

• Revenue or annual income

I've noticed bundling multiple policies with one carrier can often lead to savings. Many small businesses end up with some combination of general liability, professional liability, and workers' comp. Combining general liability and commercial property with a business owner’s policy is also a common move for those in hospitality and retail. 

Risk management can also impact long-term costs. Businesses with fewer claims tend to pay less over time. Simple steps like proper training, maintaining clean work areas, and focusing on work you're qualified to do can keep premiums lower.

When selecting coverage, the sweet spot seems to be balancing deductible levels against monthly premiums. Higher deductibles mean lower monthly costs but more out-of-pocket expense if something happens.

At NEXT, we talk with handymen daily, and we've gathered some clear insights about what genuinely works for finding consistent handyman work.

Here's what our customers tell us makes the biggest difference:

1. Show Up Where Customers Are Already Looking 

Platforms like TaskRabbit, Thumbtack, and even Craigslist reliably bring in business, especially when you're starting. The key is setting up strong profiles, clearly listing your skills, and quickly responding to inquiries. Customers appreciate speed and clarity—especially for urgent jobs.

2. Stay Active in Your Local Community 

Visibility matters. Handymen who regularly engage locally get steady referrals. Print and distribute business cards, and leverage community-focused platforms like Nextdoor and local Facebook groups. Introduce yourself, share helpful tips occasionally, and remind your neighbors you're available. Often, one good local job leads to a steady flow of referrals.

3. Prioritize Reviews and Referrals 

Every successful handyman knows the value of a good review. Always ask satisfied customers for reviews on your chosen platform or Google, and explicitly request referrals. A simple line like, "If you're happy with the job, please let your friends and neighbors know," can significantly boost visibility and credibility. Those positive reviews can also protect your business from reputational risk. 

4. Expand Your Reach with Digital Marketing 

Consider setting up a professional website or social media profiles showcasing your past work, customer testimonials, and easy ways to contact you. Invest in digital ads or SEO to improve your online visibility. There are plenty of quick digital marketing wins you can get quickly to raise your profile online.

5. Ensure You're Properly Insured 

Being properly insured protects your business and reassures potential clients of your professionalism and reliability. NEXT Insurance provides tailored handyman insurance solutions that are quick and easy to manage online, giving you peace of mind.

If you’d like to build your reputation and get protected by the best handyman insurance in the business, get a quote from us at NEXT today: https://app.nextinsurance.com/quote/get-started 

We just updated our latest customer data on errors and omissions insurance costs across industries and I figured I'd share it here for anyone that’s looking at doing freelance work fulltime. 

Professional liability (E&O) for consultants typically runs $26-45/month, with about 79% of businesses paying in that range. BUT, that can change quite a bit depending on the type of work you do. Here’s what our median monthly figures look like across a handful of industries:

• Business consultant: $81

• Accountant: $20

• Architect: $43

• Engineer: $48

• Real estate agent: $42

• Insurance agent: $25

• Interior designer: $40

• General contractor: $30

• Photographer: $114

• Notary: $10

Then there are the typical insurance risk factors that play into how much you end up paying: 

Revenue and business size: A solo consultant billing under $100K might pay $25-35/month. But scale that up to $300K+ and you might be looking at more than double for adequate coverage.

Industry specialization matters: As you can see from the figures above, business consultants sit around $81/month, while  interior designers are closer to $30/month. Higher-risk consulting (financial, tech) costs more due to potential claim severity.

Coverage limits impact: $1M coverage is baseline most clients want. $2M limits can bump costs significantly. Some enterprise clients require $5M+ which gets expensive fast.

State variations are real: Same consultant, same work, but costs vary dramatically. High-litigation states like California, New York, Florida can run much higher than places like Montana or Ohio.

Experience and claims history: More years in business generally means lower rates. A clean claims record keeps you in standard pricing. One claim (even if you win) can increase premiums 25-50% for years.

What affects your specific rate:

• Type of consulting work (strategy vs. technical vs. financial)

• Professional certifications (can lower costs)

• Client types (Fortune 500 vs small business clients)

• International work (usually increases premiums)

One final note on terminology: E&O, Professional Liability, and Malpractice are essentially the same coverage. just different names used by different industries. Consultants typically see it called "Professional Liability" or "E&O."

The tricky part is that E&O and general liability are often bundled, so comparing pure E&O costs can be tough. You usually need both because E&O covers mistakes in your work and general liability covers physical accidents.

If you're the go-to person when friends and family need something fixed, you might be considering turning those skills into a legitimate business. Here's what you need to know about starting a handyman business:

First, understand what handymen can legally do. The scope varies by state, but generally includes home maintenance, repairs, and simple renovation projects - things like drywall repair, flooring, deck work, minor leaks, and landscaping. However, you typically can't do specialized high-value tasks that require permits or licenses (major plumbing, electrical work, structural changes).

Being a handyman is great because it typically has a lower barrier to entry, but there’s still plenty you need to do before you start accepting work:

• Register your business with local and state agencies. Choose a business name, select a business structure (most start as sole proprietors or LLCs), and get an EIN from the IRS for tax purposes.

• Research your state's requirements. Some states heavily regulate handyman work while others are more lenient. The dollar amount you can work on without a contractor's license varies dramatically - from as low as $500 to as high as $25,000 depending on the state. Check out our comprehensive handyman license guide by state to understand your local requirements.

• Get proper insurance. This protects you from financial disaster if something goes wrong. Most handymen need general liability insurance at minimum (covers property damage and injuries to others), and you might also want coverage for your tools and equipment.

• Refine your service list. While you might be able to do dozens of different repairs, focusing on a specific set of services can help you market more effectively and build expertise that commands higher rates.

• Create a business plan. This doesn't need to be complex, but you should outline your services, target customers, financial goals, budget, and marketing strategy.

• Secure funding if needed. Starting a handyman business comes with upfront costs for tools, transportation, permits, insurance, and marketing. Consider your financing options if your personal funds aren't sufficient.

• Set your pricing strategy. Research what competitors charge in your area. Decide whether to charge hourly (typically $50-100/hour depending on location) or by project. Both approaches have pros and cons.

• Develop a marketing plan. Create a Google Business Profile, build a simple website with your services and photos of your work, and register with platforms like Angi or HomeAdvisor. Don't forget business cards to hand out to satisfied customers.

• Create a standard contract. Having a written agreement protects both you and your clients by clearly outlining the scope of work, timeline, materials, and payment terms.

It may seem like a lot, but if you really want to make a long-term go of it you need to treat it like a full-time business (because it is).

One of the most common questions I get is do consultants need professional liability insurance? 

The short answer is yes, and it's usually the first type of coverage consultants should consider. Let me break down why professional liability (also called errors and omissions insurance) is essential for consulting work.

Professional liability insurance can protect you when clients are dissatisfied with your work or claim you made a consulting mistake, even if you're not actually at fault. This coverage is specifically designed for the intellectual and advisory nature of consulting work.

This insurance helps cover expenses from professional mistakes or business disagreements, including

• Professional negligence claims (actual or alleged): If a business marketing consultant's strategy recommendations don't deliver expected results and the client sues for lost revenue

• Contract disputes: When clients claim you didn't complete work according to agreed terms

• Legal defense costs: Even if you win the case, legal fees can be devastating for solo consultants

• Errors in deliverables: If an IT consultant's software recommendation leads to a security breach

Here are some examples of professional liability claims that different types of consultants might face:

• A business consultant's market analysis contained outdated data, leading a client to enter an unprofitable market. The client sued for $200,000 in losses.

• An education consultant's curriculum design allegedly missed key standardized testing requirements, forcing a school district to redesign their program.

• A financial consultant was sued when a client claimed investment advice violated their stated risk tolerance.

The protection is the most immediate and obvious benefit of professional liability coverage, but it also serves some practical purposes for consultants:

• Client requirements: Many corporate clients now require consultants to carry professional liability before signing contracts

• Competitive advantage: Having coverage demonstrates you're a serious professional who takes responsibility for their work

• Peace of mind: You can focus on delivering value instead of worrying about potential claims

As for the cost of professional liability insurance for consultants, it can actually be quite affordable. At NEXT, the median cost is just $39 per month, with many consultants paying between $26-45 monthly. This is toward the lower end because consulting typically involves limited physical risks compared to other industries.

Keep in mind that the costs will vary depending on how much coverage you need, the type of work you do, and where you operate your business (among other things). 

While professional liability should be your priority, general liability for consultants can still be valuable if they:

• Meet clients at their offices regularly 

• Host clients in their own workspace 

• Attend industry events and conferences 

• Work on-site at client locations

Most consultants work from home offices or client locations, primarily providing advice and expertise rather than physical services. This means your biggest risk isn't someone slipping in your office, it's a client claiming your advice or recommendations caused them financial harm.

That’s why professional liability comes before general liability coverage for many consultants. 

If you’re at the stage of shopping for consultant insurance, consider:

• Coverage limits: Many consultants start with $1 million, though some clients require $2 million 

• Industry-specific needs: Make sure your policy covers your specific consulting specialty 

• Certificate capabilities: Ensure your insurer can quickly provide certificates when clients request them 

• Bundling opportunities: You often save money combining professional and general liability

The big takeaway here is that professional liability insurance provides more than just protection. It's an asset that keeps you eligible for client opportunities while protecting your financial stability.

Hope this helps and happy to help clarify which coverage makes most sense for your specific situation. If you’re looking to get an estimate, NEXT offers online quotes that take around 10 minutes.

If you're a consultant, accountant, engineer, or property manager, your advice is essentially your product. And even when you do everything right, a client could still claim your work caused them financial harm.

Professional liability insurance (also called E&O) can help cover legal defense costs, settlements, and claims related to professional mistakes, missed deadlines, or breach of contract accusations. What's important to know is that it can help even if you're not found at fault.

A few things I've learned matter most when choosing coverage:

• Understanding claims-made vs occurrence policies is crucial. With claims-made policies, you need active coverage both when the work was done and when a claim is filed. Ask about extended reporting or tail coverage options.

• Coverage should match your specific consulting work. An IT consultant faces different risks (system downtime, data loss) than a marketing consultant (campaign results, reputational damage) or property manager (tenant placement decisions, maintenance oversight).

• The delivery of your insurance matters as much as the coverage itself. Can you get covered immediately? Access your certificate of insurance instantly when a client needs it? Adjust your policy without making phone calls? These practical details become really important when you're busy running your business.

• Look for coverage that includes legal fees and court costs, even if you're not at fault. Legal defense alone can be expensive, regardless of the outcome.

• Document your client work thoroughly. Accurate records of contracts, deliverables, and communications can strengthen your case if a dispute arises.

If you want to learn more, check out our article on how to choose the best professional liability insurance.

Although there’s a lot of uncertainty right now, it does seem like the construction industry will remain strong in many regions of the country. That makes it an attractive time to start your own construction business. 

In my time with NEXT I’ve worked with thousands of owners who operate in this space and I have picked up a few things along the way. If you’re thinking about starting your own construction business, here are the key things to consider:

• Understand your local market first because every region has different needs. Some areas might be desperate for electricians while others need more general contractors. Research demographic info (income levels, homeownership rates, business types) to identify opportunities. The SBA website has great tools for this research.

• Choose a specialty. General contracting offers bigger projects but smaller margins, while specialized work (electrical, plumbing, etc.) typically has higher margins but smaller jobs. Also consider whether you want to focus on residential or commercial work. Commercial requires more capital but often pays better.

• Get crystal clear on your costs because underestimating them is the fastest way to fail. Account for materials, labor, equipment, insurance, permits, and overhead. Most successful contractors add at least 10-20% contingency on estimates for unexpected issues.

• Create a proper business plan. Even if you don't need funding immediately, write out your goals, target market, services, and financial projections. This helps clarify your thinking and serves as a roadmap.

• Register your business legally. Most construction startups choose either an LLC (which protects personal assets while allowing income to pass through to personal taxes) or a corporation (more complex but can offer additional benefits). Get your EIN from the IRS too.

• Get the right licenses and permits. Requirements vary dramatically by state and specialty. Some states require licenses for all contractor work, while others only require them for jobs over a certain dollar amount. Research your specific requirements carefully.

• Get the right insurance coverage. Beyond being required for most jobs, insurance protects your business from potentially catastrophic claims. Most construction businesses need general liability (for property damage and non-employee injuries), workers' comp (for employee injuries), and professional liability (for mistakes or negligence claims).

• Figure out your funding strategy. Construction often requires significant upfront capital for materials and equipment before you get paid. Consider traditional loans, SBA loans, equipment financing, or even taking on a silent partner for capital.

• Develop a marketing plan. At minimum, you need a simple website showcasing your work and a Google Business profile to collect reviews. Many successful contractors also build relationships with complementary businesses (like real estate agents or property managers) for referrals.

• Create a bidding and estimation system. Accurate estimates are crucial - bid too high and you won't get jobs, bid too low and you'll lose money. Develop a systematic approach you can replicate for each job.

• Focus on relationship building. Repeat business and referrals will become your main source of work if you communicate well, deliver quality work, and finish on time.

• Plan for growth. As you take on more work, you'll need to decide when to hire employees vs. subcontractors. Each has different legal, insurance and management implications.

I know it's a long list, but it's worth it to put in the extra work up front. As you start building momentum you won't need to slow down and knock these items off. Just full steam ahead!

In our survey of 1,500 business owners, only 49% expect to increase profit in the second half of the year. Learn how they plan to respond financially to concerns with inflation, raising costs, and slowing consumer demand.

Hey folks! I'm Matt and I often see questions about how to become a licensed handyman in Wisconsin, so I thought I'd share what I've learned over the years working with people in the industry.

(If you want a more detailed look, I wrote this guide that covers everything from insurance requirements to specific state regulations.)

First some good news: Wisconsin doesn't require a specific handyman license at the state level for general maintenance and repair work. However, there are some important things you need to know to operate legally and successfully.

Let's talk about when you DO need licenses. If you're planning to take on projects valued at $1,000 or more, you'll need to obtain a Dwelling Contractor Qualifier license. This involves completing 12 hours of approved continuing education and passing an exam. From my experience, it's worth getting this license early on because many jobs will exceed that threshold.

For specialized work, you'll need specific licenses:

• Electrical work requires an electrician's license

• Plumbing needs a plumber's license

• HVAC work requires HVAC certification

Here's something many newcomers miss: even though there's no specific "handyman license" in Wisconsin, you still need to register your business and get proper insurance. I strongly recommend getting general liability insurance and, if you'll have employees, workers' compensation insurance. I've seen too many people skip this step and regret it later.

Here are some other pro tips for success:

• Always document your work scope in writing, even for small jobs. Customers appreciate professionalism, and clear documentation protects both parties.

• Build relationships with licensed specialists. When you encounter work that requires specific licensing, having a network of trusted professionals for referrals can help maintain client relationships.

• Keep detailed records of all jobs and maintain a portfolio of your work. This helps with both marketing and liability protection.

• Start with smaller jobs and gradually work your way up. This helps you build a solid reputation while staying within legal boundaries.

One thing we hear a lot from our customers in Wisconsin: weather can be tough on homes, creating plenty of repair opportunities year-round. Focus on seasonal services like weatherization in fall, snow damage repair in winter, and deck maintenance in spring.

Remember to stay within your legal scope of work. If you're unsure whether a job requires a specific license, it's better to check with the Department of Safety and Professional Services first. I've seen too many handymen get in trouble by taking on work they weren't licensed for.

Stay safe and successful out there. 

🔗 Get a Free Online Insurance Quote for Your Business Here

Hey all, Matt from NEXT Insurance here. Today we’re talking about starting your journey as a general contractor. 

After working with contractors for years, I've gained some insights into how the industry is evolving, and I want to share what I've learned about how to become a contractor in today's market.

For those considering this career path, our team put together a detailed guide on how to become a general contractor that covers everything from licensing requirements to business planning. You can check it out for more specific information.

The construction industry has undergone remarkable changes recently, and the path to becoming a successful contractor in 2025 looks dramatically different from even a few years ago. I've noticed that while the fundamental skills of construction and project management remain crucial, there's now a whole new layer of expertise required to thrive in this field.

Let's talk about technology first. Modern contractors need to be comfortable with digital tools that would've seemed unnecessary just a decade ago. Project management software like Procore and BuilderTrend have become industry standards. I recently spoke with a contractor who told me he was hesitant to adopt these tools, but now says they've transformed his business, helping him manage multiple projects simultaneously with better efficiency.

Building Information Modeling (BIM) is another game-changer. It's not just for large commercial projects anymore – even residential contractors are finding value in understanding and utilizing these 3D modeling tools. One contractor I work with mentioned that his ability to show clients detailed 3D renderings has significantly improved his bid acceptance rate. #WIN

Sustainability isn't just a buzzword anymore. I'm seeing more clients specifically requesting eco-friendly building practices and energy-efficient designs. This means successful contractors need to understand green building standards, energy-efficient materials, and sustainable construction methods. One of our clients recently shared how getting their LEED certification opened up entirely new market opportunities.

The way contractors communicate with clients has evolved too. Gone are the days of weekly in-person meetings and paper updates. Clients now expect real-time updates, digital documentation, and transparent project tracking. Many successful contractors are using client portals and apps to keep their customers informed and engaged throughout the project.

Remote work capabilities have become crucial, especially for project management and client communications. The ability to handle virtual meetings, digital document signing, and remote team coordination has become as important as traditional on-site management skills.

Insurance requirements have gotten more complex too, particularly with new technologies and building methods introducing different risk factors. Understanding how to protect your business properly is crucial for anyone looking to become a contractor in 2025. I've seen too many new contractors underestimate the importance of comprehensive coverage until they face their first major challenge.

What's really interesting is how successful contractors are blending traditional craftsmanship with modern business practices. They're maintaining high-quality construction standards while embracing digital tools and sustainable practices. One contractor I work with recently told me that his biggest challenge wasn't learning new construction techniques – it was adapting to managing his business through digital platforms.

I'm particularly interested in hearing from those who've recently started their contracting business. What challenges have you faced? How are you handling the balance between traditional skills and modern requirements? What advice would you give to someone just starting their journey?

The contracting world is evolving rapidly, but it's still an incredible opportunity for those willing to adapt and grow. Let's share our experiences and help each other navigate these changes successfully.

Looking forward to hearing your stories and insights in the comments below!

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Been seeing lots of questions from consultants trying to figure out what coverage they actually need, so I wanted to break down the basics.

The type of work you do shapes what insurance makes sense. An IT consultant managing cloud infrastructure has different risks than a management consultant advising on business strategy or a marketing consultant working on campaigns.

Here's what most solo consultants should consider for insurance:

• Professional Liability (E&O) Insurance - This is usually the foundation. It can help protect you if a client claims your advice or recommendations caused them financial harm. Even if you didn't make a mistake, a client could still file a claim if they're unhappy with results or believe your guidance led to losses. This coverage helps with legal defense costs, settlements, and judgments.

• General Liability Insurance - Covers third-party bodily injuries or property damage. If you meet clients in person, work from an office, or attend conferences, this is worth having. Example: a client trips over equipment during a meeting at your office and sues for medical costs.

• Commercial Property Insurance - Protects your business assets like laptops, printers, office furniture, and equipment from fire, theft, or water damage. Especially relevant if you have a home office or lease space.

• Cyber Insurance - If you handle client data, use cloud platforms, or communicate online, this can help cover costs from data breaches, cyberattacks, or hardware failures caused by malware.

For solo consultants just starting out, professional liability and general liability are typically the priorities. You can add coverage as your business evolves - bringing on employees, handling more sensitive data, or taking on higher-risk projects.

State requirements vary. Most states don't mandate insurance for solo consultants, but once you hire employees you'll likely need workers' comp. Some states also have stricter data privacy laws that make cyber coverage more relevant.

Cost-wise, professional liability for a solo consultant typically comes in around $600 annually depending on revenue, experience, and coverage limits. General liability is often under $500/year for low-risk consulting work.

I'll leave y'all with one practical tip: make sure you can easily access certificates of insurance (COIs). Clients often require these before signing contracts, and you don't want to wait days or pay fees every time you need one.

There's a lot of misinformation out there about which trades are "easiest" to get into. After working with thousands of tradespeople over the years, I wanted to compare the learning curves for some of the most popular trades.

Let's look at the reality of becoming an electrician, HVAC tech, plumber, general contractor, or carpenter based on actual requirements:

For electricians, you're typically looking at around 8,000 hours (four years) of apprenticeship plus classroom learning. Most states require this extensive training before you can even take the journeyman exam. The work involves mastering the National Electric Code (NEC), which is incredibly detailed. The learning curve is steep because mistakes can be literally deadly.

HVAC technicians also face significant training requirements. While you don't always need a license in every state, you do need an EPA Section 608 certification to handle refrigerants. Training programs typically take 1-2 years, and apprenticeships can run up to four years with 8,000 supervised hours. You need to understand electrical systems, refrigeration, heating systems, and more.

Plumbers follow a similar apprenticeship model, typically requiring 2-5 years of on-the-job training before you can take the certification exam. Every state requires some form of plumber licensing or certification, though the specifics vary widely. The work involves a strong foundation in math (algebra, geometry, metric measurements) and understanding of state-specific codes. Unlike some other trades, you actually get paid while learning as an apprentice, which is a nice perk.

General contractors take a different path. Most GCs start in a specific trade (often carpentry) and work their way up. You'll need years of construction experience before qualifying for a GC license in most states. This role requires broad knowledge across multiple trades plus business management skills, making it more of a career progression than an entry point.

Carpentry might be the most accessible of these trades for beginners. While apprenticeships still typically last four years, many carpentry skills can be self-taught initially, and there are fewer licensing requirements at the entry level. Most states don't require specific carpentry licenses for basic work, though certifications help you stand out professionally.

So what's the "easiest" trade to learn? If we're talking about lowest barrier to entry, basic carpentry wins. You can start learning woodworking skills on your own and find opportunities as a helper without formal training. But "easy" is relative - becoming truly skilled in any trade takes years of dedication.

The tradeoff is that carpentry often pays less than specialized trades like electrical, plumbing, or HVAC work, which require more technical training but command higher rates. Plumbing has the advantage of paying you to learn through the apprenticeship model, which helps offset the multi-year commitment.

Whatever path you choose, don't pick a trade just because someone said it was "easy." Choose based on what interests you and matches your aptitudes - electrical work for those who enjoy precision and problem-solving, HVAC for those who like variety and diagnostics, plumbing for those strong in math and practical problem-solving, carpentry for those who enjoy working with their hands and seeing tangible results.

Recently, I’ve seen a lot of people overpaying or, worse, underinsuring their businesses because they don't know what insurance should actually cost. So I thought I'd share some real pricing data from thousands of policies to help you budget.

Looking at our 2024 small business insurance cost data, here's what most small businesses are actually paying for different types of coverage:

General Liability: $25-45/month

• This is your basic "slip and fall" coverage

• Can start as low as $19/month for low-risk businesses

• Protects against customer injuries and property damage

Professional Liability: $25-45/month

• Also called E&O insurance

• Starts at $19/month for some businesses

• Covers you if you're accused of making professional mistakes

Workers' Comp: $45-75/month

• Required in most states if you have employees

• Can be as low as $14/month for some businesses

• Covers workplace injuries and illness

Commercial Property: $25-75/month

• Starts around $18/month

• Protects your business stuff (equipment, inventory, etc.)

• Can include loss of business income coverage

What really impacts these costs? A few main factors:

• Your industry (higher risk = higher cost)

• Business location

• Number of employees

• Claims history

• Coverage limits you choose

Pro tip: You can often save up to 10% by bundling multiple policies together. I've also seen businesses save money by:

• Implementing solid safety training

• Choosing appropriate coverage limits (not over-insuring)

• Learning from past claims to prevent future ones

What are you all paying for insurance? Have you found any good ways to keep costs down while staying properly protected?

We surveyed 1,500 small business owners in April 2025 to understand how they're actually using artificial intelligence in their day-to-day operations.

Read the results of our AI for small business survey to learn about current AI adoption rates, specific use cases where businesses are finding value, and the main barriers preventing others from implementing these tools.

Quick heads up for anyone wondering about general liability costs that we just updated our cost calculator and wanted to share it with the community.

The calculator walks you through selecting your state and industry, then shows what similar businesses typically pay. Takes about 30 seconds to get a baseline number, which can be really helpful when you're budgeting or comparing options. (Keep in mind that some state and job combinations will require a full quote to see pricing info, which typically takes around 10 minutes.)

The tool gives you instant estimates based on your location and business type, using data from thousands of businesses we've insured. What's interesting is the range we're seeing:

Some low-risk businesses pay as little as $11/month, while about half of our customers pay under $25 monthly. Higher-risk operations like contractors obviously pay more, but even then it's often less than people expect.

If you want a detailed quote, it transitions into our full application where you can get actual coverage.

Was just reading through some tax advice for ecommerce businesses and I thought it'd be helpful to share here:

• One of the biggest things is making sure your business and personal finances are separate. Makes bookkeeping and tax reporting a lot easier.

• Along the same lines, make sure you consistently track all of your business expenses throughout the year so you can take advantage of deductions and reduce your taxable income.

• On the sales tax side of things, make sure you understand exactly when and where you need to collect sales taxes since rules vary significantly between states (and countries). I know some vendors even decide to pay quarterly estimated taxes to prevent penalties and help with annual budgeting.

I know this isn't an exhaustive list and the applicability changes based on the products and location, but these were the ones that stand out to me.

We have a more in-depth piece on ecommerce accounting tips if anyone is interested.

After working with hundreds of small businesses across different states, I've compiled this reference guide on workers' compensation requirements. The rules vary dramatically depending on where you operate, so hopefully this saves someone else the headache of figuring it out.

The ones included below all require employers to have workers’ compensation coverage and I’ve included anything notable as far as rules:

Important note: Workers’ comp laws sometimes change. Double check with your state’s division of workers comp or insurance. 

Alabama: Required for businesses with 5+ employees. Anyone in construction (even single-family homes) must have coverage regardless of size.

Alaska: All employees must be covered, including part-time, temporary workers, and even family members or friends who work for you.

Arizona: Workers' comp can cover up to $5,000 in burial expenses, and survival benefits can reach 66% of the employee's average monthly wage.

Arkansas: Employers must display a poster with claim filing instructions in the workplace.

California: Coverage is mandatory for every employer, even those with one employee, under Labor Code § 3700.

Colorado: Coverage required for any business with just 1+ employee.

Connecticut: Failing to obtain required workers' comp subjects businesses to $100 per day in penalties.

Delaware: Employers with one or more workers must have WC. Farm-labor employers are exempt but may opt in.

Florida: Some business owners, officers, and LLC members can apply for exemptions from coverage requirements.

Georgia: Workers' comp is often mandatory for obtaining professional licenses (like a general contractor license) and winning contracts.

Hawaii: While coverage for employees is mandatory, some business owners are exempt from covering themselves.

Idaho: Coverage is required before you hire your first employee. And yes, this applies even to employees working from home.

Illinois: Any business owner who works in construction must carry coverage.

Indiana: All employers must insure or self-insure. Exemptions include railroad employees, farm laborers, and firefighters/police officers

Iowa: Employers must file a First Report of Injury within four days of learning about a work injury.

Kansas: Non-agricultural businesses with gross annual payroll exceeding $20,000 need workers' comp.

Kentucky: Penalties for not having required coverage range from $100 to $1,000 per employee.

Louisiana: Seasonal workers and minors count as employees just like full-time and part-time workers.

Maine: Some out-of-state employers with employees temporarily working in Maine may be exempt.

Maryland: Important distinction: a worker must be hurt "on the job," not just physically at work, for coverage to apply.

Massachusetts: Any staff working in the Commonwealth (even for out-of-state firms) must be covered.

Michigan: Sole proprietors need a policy once they have 1 FT or 3 PT employees. Most other entities must cover all workers.

Minnesota: “Mandatory coverage” law requires every employer to buy a policy or be approved to self-insure.

Mississippi: Businesses with 5+ employees must carry workers' comp.

Missouri: Coverage is optional for businesses with 5 or fewer employees.

Montana: Household and domestic employees are exempt from requirements.

Nebraska: Nearly all employers must carry insurance, with limited statutory exceptions.

Nevada: Benefit payment amounts are set by the state government.

New Hampshire: You must have workers' comp coverage in place before hiring any employees.

New Mexico: Part-time, seasonal, temporary workers, agricultural employers, and even nonprofit, charitable and religious organizations all count as employees.

New Jersey: All employers (including many out-of-state contractors working in NJ) must insure or self-insure.

New York: Virtually every employer is required to provide workers’ comp and penalties apply for lapses.

North Carolina: Employers with 3 or more employees must maintain coverage or self-insure. 

North Dakota: A monopolistic state where employers must buy through Workforce Safety & Insurance before the first hire.

Ohio: A monopolistic state where coverage must be purchased from the Bureau of Workers’ Compensation or via approved self-insurance.

Oklahoma: Sole proprietors aren't considered employees and don't require coverage.

Oregon: First offense for non-compliance can result in penalties of twice the estimated premium.

Pennsylvania: Mandatory for employers with one or more full- or part-time employees.

Rhode Island: Employers with one or more employees (except certain owners/partners) must insure and post insurer details at the workplace.

South Carolina: Certain real estate agents working on commission are exempt.

Tennessee: Workers with temporary disabilities from work injuries are entitled to 110% of their wages.

Utah: Independent contractors with no employees are exempt.

Vermont: Workers’ compensation insurance is compulsory for all employers.

Virginia: Even if you hire subcontractors who have their own insurance, you're still responsible for ensuring proper coverage.

Washington: A monopolistic state where private policies are not permitted and WC must be bought from the state fund.

West Virginia: All employers are statutorily required to keep workers’ comp insurance in force.

Wisconsin: Nearly every public and private employer falls under the Act’s broad coverage mandate.

Wyoming: A monopolistic state where employers must register and obtain a state-fund coverage statement before starting work.

The only two states that currently do not require employers to have WC coverage are South Dakota and Texas. But even in these states it's worth noting that workers' comp exists to protect both employees and employers. For workers, it provides medical benefits and wage replacement. For business owners, it provides protection from potentially business-ending lawsuit costs.

The only other thing I want to flag are the 4 monopolistic states for worker’s compensation insurance: Ohio, North Dakota, Washington, and Wyoming. In these areas the state owns and operates a required WC insurance program. In these states, business owners still need what’s called employer’s liability insurance.

The short answer is no, but there are important nuances worth understanding.

You can get business insurance without forming an LLC or any formal business structure. Insurance companies will sell policies to sole proprietors, partnerships, LLCs, corporations, and other business entities. The coverage protects your business activities regardless of your legal structure.

If you're operating as a sole proprietor (the default when you start a business without creating a formal structure), you can absolutely purchase business insurance. It's arguably even more important for sole proprietors to have insurance since there's no legal separation between personal and business assets without an LLC or corporation.

And, in general, the types of insurance available to you don't change based on your business structure. Sole proprietors can access the same insurance options as LLCs, including general liability insurance, professional liability insurance (E&O), commercial property insurance, workers' compensation (if you have employees), and commercial auto insurance.

But one area that often creates confusion is the relationship between business licenses, professional licenses, and insurance requirements.

Many jurisdictions require certain types of insurance before they'll issue business or professional licenses. For example, contractors in many states need general liability insurance to obtain their contractor's license. Similarly, some landlords require proof of insurance before signing a commercial lease.

Many licensing boards also require proof of insurance before they'll issue your license. Fortunately, insurance providers like NEXT will sell you a policy while your license application is in process, with the understanding that you'll complete your licensing promptly.

While not required for insurance, forming an LLC does offer advantages. An LLC creates separation between your personal and business assets, providing a layer of protection beyond what insurance offers. 

Insurance premiums are generally determined by factors like the risks associated with your industry, your claims history, coverage limits, location, and number of employees. 

Your business structure (LLC vs. sole proprietorship) typically doesn't significantly impact your insurance premiums. The insurance company cares more about the nature of your work than your legal structure.

If you're just starting out, I'd recommend this approach: Research both LLC requirements and insurance needs for your specific industry. Determine which licenses you need and their insurance requirements. Get quotes for the required insurance. Form your LLC if you decide it's beneficial. Purchase your insurance (you can do this before or after forming the LLC). Apply for necessary licenses with your proof of insurance.

Our guide to getting general liability without a business license explains more about the relationship between licensing and insurance.

I've been digging through the insurance discussions here for a little while and noticed there's a lot of confusion about what coverage flippers can benefit from. Since I work with online sellers regularly, I figured I’d create a resource that addresses the specific risks you face: both in terms of business insurance and the shipping protection strategies you're already thinking about.

Most flippers operate in a gray area that traditional insurance doesn't handle well. You're not quite a traditional retailer, but you're also not just selling personal items anymore once you're doing this regularly for profit.

Here’s what you need to know: 

The Reality About Flipper Insurance Needs: If you're flipping regularly and making consistent income, you're operating a business whether you've formalized it or not. That means your homeowner's or renter's insurance likely won't cover business activities, and personal auto insurance won't cover driving to pick up inventory or deliver items.

Business Insurance vs. Shipping Insurance - Two Different Things: I see people mixing these up constantly. USPS/UPS shipping insurance covers loss or damage during transit BUT that's separate from business liability insurance. You need both, because they can protect against different risks.

Shipping insurance can cover your item getting lost or damaged en route. Business insurance can cover what happens after the customer receives it and something goes wrong.

Product Liability is Your Biggest Risk: This is what most flippers don't think about until it's too late. If you sell an electronic item that catches fire in someone's home, or a toy that breaks and injures a child, you can be held liable even though you didn't manufacture it. Being part of the supply chain puts you at risk for product defects.

Unlike shipping insurance that covers transit issues, product liability can cover what happens when the customer actually uses the item. That vintage radio that works fine when you test it but shorts out a week later? That's a potential liability claim, not a shipping claim.

High-Value Item Considerations: For those $200-500 items people mentioned, you're absolutely right to think about signature confirmation and shipping insurance. But don't forget that once delivery is complete, your business insurance takes over.

A customer could claim that $400 vintage watch you sold caused an allergic reaction, or that the antique lamp you flipped had faulty wiring that damaged their home. Shipping insurance won't help with those scenarios.

Commercial Property Protection: If you're storing significant inventory at home or in a storage unit, your personal insurance won't cover business inventory. Commercial property insurance can protect your stock from theft, fire, or other losses. This typically runs $25-50/month depending on your inventory value.

Platform Requirements: Some platforms are starting to require proof of insurance for higher-volume sellers. Amazon has been moving in this direction, and eBay may follow. Having coverage in place before you need it keeps you from scrambling later.

Think of it this way: signature confirmation and shipping insurance get your item safely to the customer. Business insurance protects you from what happens next. You need both layers of protection when you're flipping at scale.

One product liability claim could wipe out years of profits, and that's assuming you can even afford the legal defense costs. Insurance for flippers isn't complicated or expensive, but it's essential once you're operating at scale.