If you own a small business in the Scranton or NEPA area, you’ve probably been told you need business insurance. But what does that actually mean? Business insurance isn’t a single policy-it’s a category that includes several different types of coverage, each designed to protect against a different kind of risk.
The challenge for most business owners is figuring out which coverages they actually need, which ones are required, and which gaps they might not even know about. This guide breaks it down.
The Core Coverage: General Liability Insurance
General liability is the foundation of most business insurance packages. It covers claims related to bodily injury, property damage, and personal/advertising injury caused by your business operations.
If a customer slips on your wet floor and breaks a wrist, general liability pays for their medical bills and any legal costs if they sue. If your employee accidentally damages a client’s property while on a job, it covers the repair or replacement.
For most small businesses in Scranton-whether you run a coffee shop on Lackawanna Avenue, a landscaping crew in Clarks Summit, or a consulting firm from a home office-general liability is the starting point.
Commercial Property Insurance
This covers your physical business assets: the building (if you own it), equipment, inventory, furniture, signage, and sometimes even the contents of a leased space. If a fire, storm, or vandalism damages your property, this is what pays to repair or replace it.
Important note: like homeowners insurance, standard commercial property policies typically exclude flood damage. If your business is located in a flood-prone area of NEPA, you’ll need separate flood coverage.
Business Owner’s Policy (BOP)
A BOP bundles general liability and commercial property insurance into a single policy, often at a lower premium than buying them separately. Many small businesses in Pennsylvania start with a BOP because it covers the two most fundamental risks in one package.
BOPs often include additional coverages like business income insurance (also called business interruption), which replaces lost revenue if you’re forced to close temporarily due to a covered event-like a fire that shuts down your storefront for two months.
Workers’ Compensation Insurance
If you have employees, Pennsylvania law requires you to carry workers’ comp. This covers medical expenses, rehabilitation, and a portion of lost wages if an employee is injured or becomes ill because of their job.
Workers’ comp applies regardless of fault. Even if the employee made an error that caused the injury, they’re still covered. In exchange, workers’ comp generally prevents employees from suing the business for workplace injuries.
Businesses without employees may be exempt, but contractors and subcontractors in NEPA should be especially careful-many general contractors require proof of workers’ comp from subs before they’ll let them on a job site.
Commercial Auto Insurance
If your business owns, leases, or regularly uses vehicles for business purposes, your personal auto policy won’t cover accidents that happen during business use. Commercial auto insurance fills that gap.
This is particularly relevant for NEPA businesses that involve driving-delivery services, construction crews, real estate agents, cleaning companies, and any business with a fleet or service vehicle.
Professional Liability (Errors & Omissions)
This covers claims that arise from professional mistakes, negligence, or failure to deliver a service as promised. It’s essential for service-based businesses: consultants, accountants, IT firms, real estate agents, and any business that provides advice or professional services.
General liability won’t cover these claims-it handles physical injury and property damage, not professional errors. If a client alleges your work caused them financial harm, professional liability is what responds.
What Business Insurance Typically Does NOT Cover
Understanding exclusions is just as important as understanding coverage. Here are common gaps that catch business owners off guard:
Flood and earthquake damage. Excluded from standard property policies. Requires separate coverage.
Employee lawsuits over discrimination or wrongful termination. Requires Employment Practices Liability Insurance (EPLI).
Cyber attacks and data breaches. Requires a cyber liability policy-increasingly important for any business that handles customer data, even small ones.
Professional mistakes. Requires professional liability/E&O (see above).
Intentional acts or criminal behavior. No insurance covers deliberately illegal activity.
How to Know What Your Business Needs
The right insurance package depends on your industry, your size, your location, and your risk exposure. A home-based graphic designer has very different needs than a Scranton restaurant or a Dunmore contractor.
The best starting point is a conversation with an independent agent who can assess your specific risks and build a package around them-rather than selling you a one-size-fits-all policy.
At Gilmartin Insurance Agency, we work with small business owners across Scranton, Wilkes-Barre, Dunmore, and the greater NEPA region to build customized commercial coverage. We represent multiple carriers, so we can compare options and find the right fit for your business-not just the easiest sale.
Have questions or want to review your current policy? Contact us for a free, no-pressure conversation. We’ll help you understand exactly what you have, what you might be missing, and where you could save.
☎ Call us or request a free quote online today.
