Short answer
Do I have the right business insurance? Many small firms buy a policy because a client requires a certificate. The certificate gets them paid, so nobody checks further. Seven signs suggest your policy may not fit your work, and any one of them is a reason to have someone read it with you. Whether a policy responds depends on its wording and the facts.
Sign 1: You only have general liability
If your work is drawings, models, data or advice, the main risk is usually a professional error. General liability is built for injuries and property damage, so it often does not address that risk.
Many owners carry GL alone because it satisfies the certificate. Professional liability is the policy designed for errors in the work itself, subject to its own terms. The machine control modeling insurance article shows how this plays out for one type of firm.
Sign 2: Your GL names your occupation in an exclusion
Look for a designated professional services exclusion and read its schedule. Some schedules list the insured’s own job title.
When that happens, the GL is mostly left with premises and general business exposures. Our designated professional services exclusion article explains where to find the wording and what it means.
Sign 3: You bought it because a client required it
A client’s requirement is the minimum they want to see. It does not measure your risk.
A certificate proves you have a policy. It does not show what the policy covers. One owner told us, “Some customers make us carry insurance, and some don’t.” The policy was bought for the certificate, so nobody compared it to the work.
Sign 4: The occupation on your policy is close, not exact
If you picked the nearest box on an online form, check for a limitation to business description endorsement. Some policies only respond to the operations described on the application.
Our business description article explains how to write a description that matches what you do.
Sign 5: The price seems too good
A very low premium for a professional firm can mean professional work is excluded. Compare what each policy covers, not only the price.
One owner said, “I’m not overpaying. But if there was a way to save money, of course, everybody wants to save money.” Wanting a good price makes sense. The question to ask is what the lower price leaves out.
Sign 6: It auto-renews and nobody reviews it
Your business changed over time. The answers on the application probably did not.
Auto-renewing policies often carry forward the old answers unless someone updates them. Our article on when to start the insurance renewal process explains why a review before renewal matters.