Do I need business insurance before my first customer?

You may not legally need business insurance on day one, but you should decide before you take paid work, meet customers, deliver products, sign a lease, or sign a client contract. An LLC does not replace insurance. The LLC is your legal structure. Insurance is what may help cover claims, accidents, property damage, professional mistakes, or injuries. Some customers, landlords, lenders, platforms, and licensing agencies may require proof of insurance before you can start.

Steps

1. List what could go wrong in your business. Think about customer injury, damaged property, late or incorrect work, data issues, product defects, driving, equipment, or advice that affects someone’s money, health, home, or business.

2. Check outside requirements. Review any lease, client agreement, vendor agreement, platform terms, loan documents, or license application. These may name the type of insurance and coverage proof required.

3. Match insurance to the risk. Common types include general liability, professional liability, product liability, commercial auto, cyber coverage, property coverage, and workers’ compensation if you have employees. What you need depends on your work.

4. Do this before your first real exposure. For example, before entering a client’s home, shipping products, giving paid advice, hiring help, driving for business, or hosting customers at a location.

5. Keep your certificate of insurance. If a client or landlord asks for proof, you will usually need a certificate from your insurer.

6. Review when your business changes. New services, employees, locations, vehicles, equipment, or larger contracts can change what coverage makes sense.

If you are still stuck

Use your Stratify roadmap to see where insurance fits in your setup order. You can also ask the AI coach what risks apply to your business. Include what you sell, whether customers visit you or you visit them, whether you give advice, and whether you have employees or contractors.