Why You Should Price These 7 Risks In Your First Year

If you're in the first year of running your business, your energy is probably focused on building your product or service, acquiring customers, and managing cash flow. But in this critical period, it's easy to overlook an essential part of growing your business: protecting it from risks you may not yet see coming. In your first year, your operations are still finding their footing, and you're more exposed to unexpected events that could derail your progress — or even shut the doors before you've had a chance to stabilize. That's why it's crucial to price in the right insurance coverage early. These protections don't just shield you from financial loss — they give you the confidence to focus on what you do best. Here are seven key risks to consider and how you can find coverage for them using CoRisk's marketplace.

1. Workers' Compensation

If you have employees — full-time, part-time, or even contract workers — workers' compensation insurance is likely a legal requirement in your state. This coverage pays for medical care and lost wages if someone you employ gets injured while performing their job. For new businesses, this is a critical risk to address, especially if you're in an industry with physical work, such as construction, manufacturing, or hospitality. The cost of your coverage depends on your business's industry classification, the number of employees, and your location. Class codes for workers' compensation vary by state, and in some states like California, the rating bureau is the WCIRB instead of NCCI. You can start your workers' compensation quote to see how much your specific situation costs.

2. General Liability

General liability insurance is your first line of defense when a third party makes a claim against you. This includes situations like a customer slipping and falling in your store, or someone claiming you damaged their property during a service call. For businesses that operate in physical spaces — whether it's a retail store, office, or warehouse — this is essential. General liability is also often required by landlords, clients, or partners before you can start work. Even if your state doesn't require it by law, it's a smart move to include it in your first-year planning. You can compare general liability quotes to find the right level of protection for your business.

3. Business Owner's Policy (BOP)

A Business Owner's Policy (BOP) is a cost-effective way to protect your business with two core coverages: general liability and property insurance. This makes it a great option for small businesses that need to cover both third-party claims and damage to their physical assets — like equipment, inventory, or your office space. BOPs are especially popular among retail, service-based, and professional businesses. If your landlord or client requires both types of coverage, a BOP can save you time and money. You can start your BOP quote to compare pricing from multiple carriers in one application.

4. Cyber Insurance

Cyber insurance is no longer just for large corporations. As more businesses rely on digital operations, the risk of cyber incidents like data breaches, ransomware attacks, and phishing scams is growing. If your business collects customer data, uses online payment systems, or has a digital presence, you're at risk. Cyber coverage helps pay for the costs of responding to an attack, including legal fees, customer notification, and public relations support. It can also help cover lost income while you recover. You can start your cyber insurance quote to see how much this coverage costs for your specific needs.

5. Professional Liability / Errors and Omissions (E&O)

If your business involves providing advice, services, or expertise — like consulting, accounting, legal services, or design — professional liability insurance (also known as Errors and Omissions or E&O) is important. This coverage protects you if a client claims you made a mistake, failed to deliver, or caused financial harm through your work. For service-based businesses, this can be a major risk, especially in the early stages when processes are still being refined. You can start your professional liability quote to see how this coverage fits your business model.

6. Exposures That Require Separate Policies

While the first five lines cover many of the most common business risks, there are other exposures you need to consider. For instance, if your business employs people, employment practices liability (EPL) may be necessary if a worker files a claim related to wrongful termination, harassment, or discrimination. Similarly, if you use company-owned vehicles for business — like delivery trucks or sales cars — you'll need commercial auto insurance. These coverages are not available through CoRisk's marketplace but are still essential. You may need to work with a local insurance professional to get these policies in place.

7. Risks Beyond Standard Coverage

Other exposures, like flood insurance, umbrella coverage, and group health, are important but require separate planning. Flood coverage is essential if you're located in an area prone to flooding, and umbrella policies can provide extra protection beyond your standard policies. Group health insurance is often managed through brokers or directly with carriers. While these lines are not available to quote online, they should still be evaluated based on your business's specific needs and location. The Small-Business Risk section of our blog has more information on how to approach these exposures.