Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Small Business Insurance
Small Business Insurance. A small business, as defined by the Small Business Administration, is one with 500 or fewer employees. As of 2016, there are 27 million or more small businesses in operation within the U.S., ranging from sole-proprietorships owned by the self-employed to construction firms, small stores, beauty salons, and even community banks. Regardless of their volume of business, all small businesses share a common thread - the need for obtaining proper small business insurance to protect their businesses from all angles.
Small business owners in can work request a quote to find the right small business insurance policies for their businesses. From rate and policy comparison to finding the exact coverage that meets a specific business need, we can help you find policies for the your business needs. Small business insurance protects your investment by minimizing financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, or a natural disaster.
Small business insurance protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Statistics On Small Businesses In The United States
- The U.S. is home to more than 27 million small businesses
- Single proprietors own more than 70 percent of all U.S. small businesses
- 57 percent of the U.S. workforce, or 77 million people, work in small businesses across the country
- Around 7 out of 10 small businesses are still operating two years after opening
- Roughly 5 out of 10 small businesses are still operating five years after opening
- Home-based small businesses account for 54 percent of all small businesses
Filling Insurance Needs For Owners Of Small Businesses
The smallest home businesses that have no employees are not subject to governmental requirements for purchasing insurance. Nonetheless, businesses with employees, even small businesses need certain types of insurance - some to remain compliant with government requirements and others that protect the business owner in the event of work-related accidents, illnesses, injuries, or even death. Companies with employees may need:
Worker's comp policies for small businesses. This type of small insurance may be available through the worker's compensation insurance program in or through a commercial agent selling small business policies. The requirements for worker's compensation insurance are specific to, making it important that small businesses consult with an insurance pro for requirements to ensure their compliance.
Unemployment insurance for small businesses. Unemployment insurance is paid for using UI taxes collected by each individual state. After a business establishes itself and registers with the Department of Labor, the business owner begins paying UI taxes and is covered in the event of layoffs and other related unemployment issues.
Disability insurance policies for small businesses. The purchase of disability insurance by small business owners can be a valuable type of insurance for small businesses looking to build up their employee benefits packages.
Group medical coverage for small businesses. Small businesses with more than 50 employees may be required to purchase group health insurance for their employees under the Affordable Care Act. Even if you have no employees, you should consider coverage under a small business insurance policy for yourself and your family.
What Does Small Business Insurance Do?
A type of optional insurance coverage, small business insurance provides your business with the coverage it needs to maintain operations after a lawsuit or catastrophic event. Lawsuits can wreak devastation to your business model, as can extreme weather events, fires, and accidents.
As many as 50 percent of businesses that undergo a natural disaster such as a hurricane, tornado, fire, or major flooding fail within a five-year period. Businesses that fail to resume operating in the aftermath of disaster within a 10-day period tend to close within a month's time in 80 percent of instances. These businesses usually lack a solid insurance policy that helps the business to remain profitable and resume operations as soon as possible after setbacks due to covered perils.
Property Loss and Damage and Small Business Insurance
Small business insurance needs vary widely, due to the vast numbers and types of small businesses in operation. Some considerations for the small business owner when purchasing small business insurance to protect against loss and damage:
- Home-based businesses with business materials and equipment worth less than $2,500 are often served best by the purchase of riders to cover such losses on their renters or homeowners policies. These riders are designed specifically for business property.
- Home-based businesses with materials and equipment valued greater than $2,500 put less than $10,000 should consider home business insurance policies.
- Home-based businesses with materials and equipment on the premises greater than $10,000 in value and businesses located outside the home generally require the more expansive protection afforded by small business insurance policies.
- Small business owners who also own the buildings in which their businesses operate should always purchase insurance in an adequate amount to cover the actual building structure and its contents. This ensures that any damage, theft, or loss is covered in times of peril.
- No matter which policy a business owner chooses, flood insurance is important, since most policies exclude flood damage altogether. The purchase of an individual flood insurance policy is essential for businesses of all sizes, particularly those that lie in flood-prone or flood zone areas.
Liability Protection with Small Business Insurance
An important component of any commercial business insurance policy is small business liability insurance. While the risk you need to protect your business from differs based on your industry, it is difficult to find a one-size-fits-all policy. Small business insurance policies are customizable, so your agent can tailor the policy to fit your risk threshold and the assets you need to protect. Some small business liability insurance options are:
- General business liability insurance. The majority of liability claims lodged against businesses are covered by general business liability insurance. This includes payments made for property damage, slander and libel, and bodily injury. It also covers any legal fees and court costs for defending your business in such actions.
- Professional liability insurance. Sometimes referred to as "errors and omissions" insurance, this coverage protects your business from claims of liability that arise due to errors, negligence, and malpractice. In some locations, state law requires that businesses or even workers in certain fields carry this type of insurance. For example, people working in the medical niche must purchase professional liability insurance.
- Product liability insurance for small businesses. Companies that sell, distribute, or manufacture products often rely on product liability insurance to protect them in the even that a defective product associated with the company causes them to be sued due to injury or illness.
The amount and type of coverage needed by your business determines the rates. Insurers also look at the likelihood of a business facing liability suits when determining the rates charged.
Additional Coverage Options for Small Businesses
Customized small business insurance plans are designed to fit your particular business model and may include other types of coverage that is uniquely necessary for your individual business. For example, your business may need:
- Insurance for loss of income. Loss-of-income insurance covers your business in the event that you must temporarily stop operated due to a covered peril. This type of coverage provides you with ongoing income during the work stoppage so that you can continue to cover wages to employees and other business expenditures.
- Fidelity insurance for small businesses. Fidelity insurance coverage protects your business from losses that result from an employee's illegal activities that affect your business. Two such examples of potentially covered actions include embezzlement or theft.
- Commercial vehicle insurance for small businesses. For businesses that use vehicles for business purposes, commercial vehicle insurance is a must for protecting the business and covering risks while on the road. This is an important type of insurance for employees who drive company vehicles during the course of business.
Choosing the Best Policy for Small Business Needs
Finding the right policy for a small business is no easy task, since business vary as much as the policies available. According to the SBA, "You should discuss your specific business risks and the types of insurance available with your insurance agent or broker. Your agency can advise you on the exact types of insurance you should consider purchasing."
Request a free quote today to get help in assessing your business' risks and formulate the right policy for your specific needs and risks.
Our agents can help you get a small business insurance quote online from several companies, which is instrumental in finding the right policy that meets your budget. We work with multiple companies and are not bound to sales for a particular company, making it easier to compare rates and options.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Business General Liability
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Comprehensive General Liability
- Directors and Officers Liability
- Employers Liability
- Employment Practices Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Small Business
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners thnk about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc.? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.