As of 2022, there are a total of 33.2 million small businesses operating in the United States according to a study conducted by the Small Business Administration (SBA). That same study recognized that over 50% of the small businesses operating in the country are home-based with California, Florida, Texas, and New York housing the highest number of small businesses. Regardless of what state your business is located, it’s imperative to do everything you can to protect your operation and livelihood. That’s why business insurance is so important. If you’re searching for a new commercial insurance policy or it’s time to renew an existing business insurance policy, a little background knowledge will make you more informed and positioned to find the coverage that you need.
General Liability Insurance and Workers Copmensation Insurance are two of the most commonly implemented insurance coverages that small business owners in California, Florida, Texas, and New York rely upon. Learn the ins and outs of these crucial forms of small business insurance then check out CoverHound to explore resources that help you plan, prevent, and insure against the unexpected.
General liability insurance will help cover medical expenses and legal fees resulting from bodily injuries and property damage for which your business may be legally responsible. General Liability Insurance also protects your business from the most common claims that can arise as a result of normal business operations - including claims of property damage, personal injury, libel, slander, and defamation.
California General Liability Insurance Policy Covers:
Florida General Liability Insurance Policy Covers:
Texas General Liability Insurance Policy Covers:
New York General Liability Insurance Policy Covers:
Let's examine some often overlooked coverages that are also part of a General liability insurance policy:
If a customer is injured on your property or by using one of your products, there is a chance you and your business can be sued for damages. General liability insurance will pay for your legal fees (including the defense, attorneys, and compensation) if you are sued.
If one unhappy customer or employee decides to air their grievances to the public, be it by mouth-to-mouth criticism or online, General Liability Insurance ensures that you are covered against claims of copyright infringement and slanderous talk, including libel.
General liability insurance will also protect you as a renting tenant if you should cause fire damage or some other such to the property you’re renting.
There is no set cost for either General Liability Insurance or Workers Compensation Insurance in any state. Instead, the cost of business insurance and commercial insurance varies based on factors such as services offered, the number of employees, equipment owned, owned or leased real estate, state regulations, and/or local regulations among other reasons. For example, the cost of a Workers Copmensation Insurance for a manufacturing company operating in California will be very different from a Workers Compensation Insurance policy for a grocery store in Texas. Other considerations such as annual sales, payroll, company assets, and claims history also help determine the cost of coverage in every state.
It’s a fact, sometimes accidents happen. Business owners know this better than anyone. Except there’s a distinction between unpredictable freak accidents and accidents occurring as a result of unsafe conditions. Commercial General Liability Insurance can protect a company and its owners from financial loss if their business operations cause harm (like property damage or bodily injury) to others. A basic example of this occurs when a customer visiting a business trips on loose flooring and is injured. This is a highly dreaded situation for every small business owner. General Liability Insurance will help cover resulting expenses like medical bills, rehabilitation costs, and litigation fees, which can literally save a small business after an accident.
No matter what industry a business operates in, employees are still susceptible to injury. The first thing to know about workers compensation insurance is that it is not federally mandated. Similar to auto insurance, workers compensation insurance is regulated at the state level. But, as it stands today, workers compensation is required by law in 49 of 50 states. Workers Compensation Insurance covers the medical expenses and lost wages of an employee should they have been injured on the job, whether the employee was directly responsible for the injury or not.
Read detailed definitions for each Workers Copmensation Insurance Coverage below:
Compensation for Lost wages: If an employee cannot return to work due to a work-related injury, Workers Compensations Insurance type will pay up to two-thirds of their weekly wages, or salary. This will protect the employee’s financial well-being and prevent that person from falling into a financial pit while missing work.
Compensation for Medical expenses: This component of workers compensation insurance will cover all approved medical expenses such as hospital stays, er visits, ambulance rides, medical treatments, prescriptions, mobility equipment, and more.
Physical rehabilitation: This component of workers compensation will cover approved therapeutic and medical expenses until the employee is ready to return to work, and even some longer-term rehab expenses after the employee is well enough to work again.
Vocational rehabilitation: This component of workers compensation insurance covers training, tuition payments, and retraining for the position an injured employee currently holds. The idea is that training will help to prevent future accidents and injuries.
Disability benefits: This component of workers compensation includes four types of disability benefits: Temporary partial, Temporary total, Permanent partial and Permanent total disability. In essence, disability benefits cover the injured person(s) for a set amount of time before they are allowed to return to work.
Death benefits: This part of workers compensation insurance covers funeral expenses should an employee die in an on-the-job accident or another work-related incident.
Protection from lawsuits: To get the benefits of workers compensation, employees are required to sign a contract that will permanently prevent them from suing you and/or your business. This means that if an employee is hurt on the job and blames their employer for the accident, they are unable to sue. They can rely on their workers compensation to cover their expenses.
Keep in mind there are certain exemptions. If an employee is working off the clock and gets hurt, they can sue their employers as they were technically working during off-hours. If you do not keep updated employment agreements, upkeep employee training, fail to perform sufficient background checks, or ignore your state’s employment laws, you are at risk of being slapped with a lawsuit by an angry employee.
How Are Employees Getting Hurt?
The five most common workplace accidents are:
The most expensive job-related injuries are:
California, Florida, Texas, and New York have 4 of the largest job markets in the country. These States also are also home to an exceptionally large population of small businesses. Businesses operating in these states can remove the confusion by using CoveHound’s Business Insurance Checkup to learn about the Workers Copmensation and General Liability policies that are appropriate for their industry and specific business model. Once the correct form of coverage that been identified, Small business owners can get personalized quotes to review and consider before making a purchase. Still unsure about business insurance and commercial insurance? CoverHound offers a library of free resources designed to help small business owners plan, prevent, and insure against the unexpected.
Insurance shopping simplified
Insurance shopping simplified