Liability Insurance For Small Businesses in the USA

Business insurance protects your financial assets from risks and liabilities resulting from accidents and third-party negligence. Some policies also cover your accounts receivable, commercial property and workers’ compensation.

You can purchase these three policies individually or as a bundle in a Business Owner’s Policy (BOP). Choose a policy with affordable premiums and deductibles that match your budget and risk.

General Liability Insurance

General liability insurance (also known as commercial general liability or business owners policy) is one of the most popular types of small business insurance. It protects your business from claims that you or someone working for you caused bodily injury or property damage to third parties. It also pays for repairs or replacement costs if your work accidentally damages property that doesn’t belong to you. It may even help pay legal fees if you’re sued for reputational harm (libel or slander) or copyright infringement.

Your cost will vary based on your industry, your business size and your risk level. Typically, the lower your risk, the cheaper your premium will be. NerdWallet’s top-rated providers all offer a user-friendly online portal that allows you to easily get quotes, change policies and request certificates of insurance.

While a general liability policy can help protect your business from claims resulting from accidents, it doesn’t cover all risks. For example, most policies exclude damage to property while it’s in your care, custody or control (called bailee coverage). You can fill this gap by buying additional inland marine insurance.

You can sometimes save money by bundling your business insurance policies into a business owner’s policy (BOP). This bundles general liability and commercial property insurance and includes workers’ compensation, equipment breakdown and business interruption coverage.

Business Owner’s Policy (BOP)

A BOP bundles general liability insurance and commercial property insurance into one policy, saving small business owners money compared to purchasing the policies separately. Depending on your industry, your BOP may also include other coverages, such as errors and omissions (E&O) insurance and business interruption insurance. However, BOPs typically exclude workers’ compensation insurance and commercial auto insurance.

In order to qualify for a BOP, your business must have fewer than 100 employees and less than $5 million in annual sales. Additionally, you must have a commercial space that’s not used for residential

purposes. Lastly, your business must be in an industry with low risk. Large businesses often don’t qualify for a BOP, and are better off purchasing separate policies that’re tailored to their unique risks.

If you think your small business could benefit from a BOP, the best way to find out is to get a risk-free, instant quote with Embroker. We’ll determine eligibility and help you assemble a complete policy in just minutes.

Those frivolous lawsuits you’ve heard about are real, and could cost your business a fortune in legal fees. That’s why it’s important to protect your business with a BOP. Whether you’re just starting out or an established enterprise, the right liability insurance can give you peace of mind and allow you to focus on running your business.

Commercial Auto Insurance

If you or your employees drive cars, trucks, vans or other vehicles for business purposes, a commercial auto policy may be necessary. This coverage protects you against liability for bodily injury and property damage caused by an accident that occurs while on the job, as well as covers uninsured/underinsured motorists’ and medical payments insurance (PIP in some states). You can purchase commercial car insurance as a standalone policy or add it to your general small business insurance package.

Contractors, landscapers and other tradespeople frequently use commercial automobiles to haul tools and equipment to job sites. Delivery services, taxis and other livery businesses may also need a commercial vehicle policy. Commercial auto policies are typically more expensive than personal car insurance plans because they offer higher limits for liability and more comprehensive protections.

Insureon’s licensed insurance agents can help you decide whether a commercial auto policy is necessary and provide competitive quotes from leading U.S. providers. Complete our easy online application today to get started on the path to saving money and getting the proper business insurance protection you need. We also make it fast and simple to compare a wide range of other small business insurance policies, so you can choose the best combination of products for your company’s specific needs. Then, you can focus on growing your business.

Workers’ Compensation

Most states require businesses to provide workers’ compensation coverage for employees that pays medical expenses and a portion of lost wages if an employee is injured or becomes ill as a result of their job. Some states also have laws requiring employers to carry professional liability insurance to cover mistakes or oversights, like missing a project deadline (also known as errors & omissions insurance).

A business can save money on its premium by classifying employees correctly and implementing policies that help prevent injuries. For example, a restaurant can reduce its rate by creating safe work environments and training employees on safety procedures and best practices.

It is also important to make sure that any workplace accidents or injuries are reported promptly. Failing to report a workplace injury or illness can lead to fines or penalties. A business can also reduce its workers’ comp rates by installing safety equipment or putting policies in place to prevent accidents, such as keeping work areas free of hazards, including power cords that could cause falls.

The average small business pays about $47 per month or $560 annually for workers’ compensation insurance, according to Trusted Choice. The cost of this coverage may vary by state, industry and number of employees. Generally, insurance companies offer a lower workers’ comp rate for restaurants, cleaning services and accounting firms with low risk jobs.