Business Insurance in Delaware is an important part of running a successful business. When it comes to finding the right policy, you want to find the one that has coverage for all your needs. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
What are the requirements for business insurance in Delaware?
The State of Delaware has specific regulations regarding business insurance. If you own a business in Delaware, it’s important to understand what types of coverage are required and what policies are optional.
Worker’s Compensation Insurance: The state of Delaware mandates that every employer must provide worker’s compensation insurance for all employees.
Commercial Auto Insurance: Businesses in the state of Delaware are required to carry auto insurance for any vehicles used for business purposes. If your company owns vehicles, you must purchase full coverage through a licensed auto insurance company in the State of Delaware. This will cover liability costs if a vehicle owned by your company is involved in an accident that causes bodily injury or property damage to a third party.
What are the types of business insurance in Delaware?
General Liability
This is the most common insurance for small businesses. It protects your firm from a variety of claims including bodily injury, property damage, personal injury, and others that may arise from your operations.
While every policy is different, there are some standard exclusions that you’ll find in most general liability insurance policies. These include:
Professional liability: This coverage is for claims of negligence or errors that occur when you’re performing your professional duties. It’s not covered by a general liability insurance policy.
Employee injuries: General liability doesn’t cover injuries sustained by employees while at work. You must purchase workers’ compensation insurance for this to be covered.
Intentional wrongs: If you commit an intentional wrong (such as assaulting someone), it will not be covered by your general liability insurance policy.
Product recall costs: Recall costs are excluded from a general liability policy because they can be so expensive and difficult to predict. Instead, you can purchase product recall insurance to help pay the expense of recalling an item from the market.
Property damage: Liability coverage only applies to third-party property damage, not property owned by your business or its employees.
Property Insurance
Business property insurance covers the physical assets of your company such as furniture, fixtures, equipment, and inventory in case they are damaged by fire or other hazards that are included in the plan. In most cases, a property insurance policy will exclude losses caused by:
Earth movements such as earthquake or landslide
Flood
War and military action
Neglect of the insured to use reasonable means to save and preserve property at and after the time of loss
Ordinance or law enforcement actions if a building is damaged or destroyed due to its noncompliance with existing building codes or ordinances
Vehicle Insurance
Vehicle insurance protects vehicles used for business purposes against theft, collision, and other hazards. The owner’s vehicle is not covered under a business insurance policy if it is used only for personal use. Here’s a look at what vehicle auto insurance policy excludes.
Normal wear and tear on your car: If your car breaks down because of normal wear and tear, this isn’t covered by your auto insurance policy. This includes issues like an old battery that needs replacing or a worn-out timing belt. You may want to consider getting a vehicle service contract (VSC) to help cover the cost of repairs for these types of issues.
Damage from a natural disaster: Unless you have comprehensive coverage, damage from natural disasters will not be covered by your auto insurance policy. This includes earthquakes, tornadoes, hurricanes, and wildfires. If you live in an area susceptible to these types of natural disasters, you may want to consider adding comprehensive coverage to protect your vehicle against damage from fire and other weather-related incidents.
Maintenance services: Your auto insurance policy won’t cover maintenance services like oil changes or rotating your tires.
Workers’ Compensation
Workers’ compensation provides benefits to employees who are injured or disabled on the job. The benefits include lost wages, medical expenses, and rehabilitation costs. In some states, it is required by law that all employers carry workers’ compensation insurance. Workers’ compensation insurance policies typically exclude a few types of claims from coverage. These can include:
Claims for the injury or death of an independent contractor, which is anyone who is not an employee and is not under the control of the business owner.
Claims arising from injuries that occur while the employee is committing a criminal offense.
Claims arising from injuries that occur during a voluntary recreational activity like a company softball game.
Claims arising from injuries that result in part from alcohol or drug use by the injured employee.
How much does business insurance cost in Delaware?
The cost of business insurance depends on a number of factors. These are the major ones:
The size and nature of your business. The bigger your business, the more insurance you’ll need to buy. That’s because you’re more likely to face lawsuits and other claims as you grow. In addition, different types of businesses face different risks, depending on how they operate. A company that sells products can be sued if a customer is hurt by one of those products, while a home care service could be sued if one of its nurses is negligent.
Coverage limits. If you want more protection from your insurance policy, then you’ll have to pay for higher coverage limits — the maximum amount your policy will pay out for a covered claim or claims during the policy term.
Claims history. Insurance companies will view a history of claims as an indication that your business may be at higher risk in the future — and they’ll charge you higher rates in response.
Location and local risks. Different parts of the state can present different risks for businesses. You will pay higher premiums if your business is located in a location where there are higher risks of damage, vandalism, and theft.
How to choose the best business insurance in Delaware
Here are some tips to help you choose the right business insurance:
Assess your risks by conducting a risk audit.
Know your state’s laws and regulations regarding commercial auto insurance, workers’ compensation, general liability, and other forms of business insurance.
Consider hiring an independent agent who represents several different insurance companies.
