Disclaimer: The articles published here on the City of Eau Claire Economic Development Division site are meant to be a helpful starting point as you explore doing business in our community. They’re not the final word on rules, requirements, or what’s best for your unique situation. We always recommend checking in with legal, financial, or other professionals for advice tailored to your business.
If you’re just starting out as a business owner in Eau Claire, there’s one important detail to keep on your radar early, and that’s business insurance.
No matter your industry or base within the city, having the right coverage in place from day one protects everything you’re working so hard to create. Plus, depending on your business type, location, or industry, certain types of insurance might be required by law or your lease.
This simple breakdown can help you get started.
Why Business Insurance Matters
Business insurance isn’t just about preparing for worst-case scenarios, though that’s definitely part of it. It’s more about safeguarding your time, investment, and peace of mind. As a business owner, you’re juggling a lot—managing a new physical space, leading a team, serving customers, and so on. Insurance helps make sure one unexpected event doesn’t derail everything.
Imagine a customer slips on a wet floor in your store. Or a fire next door leaves your storefront with smoke and water damage. Or a delivery driver gets in an accident while transporting your products. These things happen, and when they do, the costs of repairs, medical bills, legal fees, lost income, etc., can add up fast. Having the right insurance means you won’t face repaying those expenses alone.
Insurance also builds trust. Landlords often require proof of general liability coverage before handing over the keys. Lenders might ask for property or business interruption insurance before approving a loan. And contractors or clients may want to see your certificate of insurance before signing a contract. It’s one of those behind-the-scenes essentials that helps your business look credible and ready from day one.
The bottom line is business insurance isn’t just a checkbox; it’s a tool that protects your future and helps your business start on solid ground. And in many cases, it’s not just wise to sign up for it. It’s required.
Types of Insurance You May Need
Every business is unique, so not every type of insurance may apply to you. But here are the most common coverages Eau Claire entrepreneurs should know about and why they matter:
General Liability InsuranceÂ
This coverage is foundational for many businesses. It protects you if someone is injured on your property or if your business accidentally damages someone else’s property. It can cover medical costs, legal fees, and settlements if you’re sued. For example, if a customer is injured in your storefront or your product causes damage at a customer’s home, general liability steps in. If you rent commercial space, landlords almost always require it, making it a smart starting point.
Property InsuranceÂ
Whether you own or lease, property insurance protects your physical assets, like buildings, equipment, furniture, inventory, and more. It typically covers losses from fire, theft, vandalism, or severe weather too. And some policies also include business interruption coverage, which helps replace income or cover extra expenses if you must temporarily close due to a covered event. That kind of protection can be a real lifesaver.
Workers’ Compensation InsuranceÂ
If you’re planning to hire employees, Wisconsin law requires you to carry workers’ compensation insurance once you have three or more employees (and sometimes sooner depending on your industry). This coverage pays medical bills and lost wages if an employee gets hurt or sick because of their job. It’s essential not only because it’s required, but because it protects your team and your business from costly claims.
Commercial Auto InsuranceÂ
If your business owns or uses vehicles—whether it’s a delivery van, company car, or service truck—you’ll need commercial auto insurance. Personal car policies usually don’t cover accidents or damage that happen while driving for business. Instead, commercial auto insurance protects your vehicles, drivers, and others in case of accidents or damage.
Professional Liability Insurance (Errors & Omissions)Â
If you provide professional services like consulting, accounting, architecture, or marketing, this insurance protects you if a client claims you made a mistake, gave bad advice, or didn’t deliver services as promised, causing financial loss. Even the best professionals can have missteps, and this coverage helps protect you from costly lawsuits.
Home-Based Business InsuranceÂ
If you’re running your business from home, your homeowner’s insurance likely doesn’t cover business equipment, inventory, or liability related to your work. You may need a home business endorsement or a separate policy to fill those gaps. This coverage protects against things like equipment theft, liability if clients visit your home, or damage related to your business activities.
If you’re unsure which insurance types you need, chatting with a local insurance agent can clear things up. They’ll tailor coverage to your unique risks, making sure you’re not over- or under-insured.
How to Get Covered
Your best first step when navigating business insurance is connecting with a local insurance agent who understands small businesses in Eau Claire. They’ll guide you through the process, help identify the right coverage, and explain what’s required by law or your lease.
Because every business is different, an agent will consider your industry, whether you have employees, your location, and your equipment or vehicles. That way, you pay only for what you need and don’t miss important protection.
Here are a few tips as you shop for insurance:
- Shop around and compare quotes. Premiums can vary widely, so get multiple quotes and ask detailed questions about coverage and exclusions. It’s about finding the best value, not just the lowest price.
- Ask about a Business Owner’s Policy (BOP). Many small businesses benefit from a BOP, which bundles general liability and property insurance in one convenient, and often more affordable, package. Some carriers include extras like business interruption insurance.
- Keep your policy up to date. As your business grows or changes—new employees, a bigger space, more equipment—review your coverage regularly with your agent to stay protected.
- Understand deductibles and limits. Know how much you’ll pay before insurance kicks in (deductibles) and how much coverage you have overall (limits). These affect your premium and protection level.
- Document everything. Keep copies of policies, certificates, and correspondence handy for landlords, lenders, or clients who need proof of insurance.
Finding the right insurance may seem like a hurdle now, but once it’s in place, you can focus on what matters most: running and growing your business with both confidence and peace of mind.
Need Help?
If you’re already feeling overwhelmed by insurance options, Eau Claire has a strong network of local resources ready to support entrepreneurs like you. Check out these organizations that can help you find trusted advice and connections:
Small Business Development Center (SBDC) at UW-Eau Claire: Provides expert coaching, workshops, and tools tailored to your business goals, including guidance on insurance needs.
🔗 Start Here: UWEC Small Business Development Center ›
Western Dairyland Economic Opportunity Council: A nonprofit supporting small businesses in the region with free or low-cost counseling, including help understanding insurance basics and connecting you with local agents.
🔗 Start Here: Western Dairyland Economic Opportunity Council ›
Eau Claire Area Chamber of Commerce: A hub for business connections and resources whose staff can often recommend trusted insurance providers who specialize in small business coverage.
🔗 Start Here: Eau Claire Area Chamber of Commerce ›
These groups won’t sell you insurance, but they’ll help you connect with reputable agents and understand your options. Getting support from people who know the Eau Claire business environment is a big advantage as you build your foundation.
Final Thoughts
Getting the right insurance coverage from the start is one of the smartest decisions you can make as a new business owner because it can save you a lot of stress and money down the road. So, as you plan your space, build your website, or stock your shelves, don’t forget this crucial step. A little peace of mind goes a long way when you’re chasing big dreams.
Source: Article Cover Illustration by Vecteezy
About The Author
Kendall Williams
Marketing & Communications Specialist
Kendall’s role with the City of Eau Claire Economic Development Division is to champion local businesses at every stage of their journey. Whether it’s helping new entrepreneurs find the right location, supporting existing businesses as they grow, managing the City’s loan programs, or providing data to guide smart decisions, she’s all about making Eau Claire a place where businesses can thrive.
