One Accident Can End Your Business
Your cleaner knocks over a $3,000 vase. Or slips and breaks their wrist. Or a client claims jewelry went missing. Without proper protection, any of these could bankrupt you.
General Liability Insurance (Required)
Covers property damage and bodily injury. Many clients won't hire you without it. Cost: $400–$800/year. Get at least $1M per occurrence / $2M aggregate.
Surety Bond (Highly Recommended)
Covers employee theft. "Licensed, bonded, and insured" is the trust signal clients look for. Cost: $100–$300/year.
Workers' Compensation (Usually Required)
Covers medical bills and lost wages for on-the-job injuries. Most states require it as soon as you have one employee. Cost: $0.50–$2.00 per $100 of payroll.
Commercial Auto Insurance
Personal auto policies typically exclude business use. At minimum, get a business-use rider on your personal policy.
LLC Formation
Separates personal assets from business liabilities. Cost: $50–$500 depending on your state. File with your Secretary of State, get an EIN from the IRS (free), and open a business bank account.
The Bottom Line
Expect $1,000–$2,000/year for full protection. That's less than a single lawsuit would cost. Build these costs into your pricing.