What are the requirements for business insurance in Indiana?
Most businesses need liability insurance, which covers bodily injury and property damage that results from the operation of your place of business or from your business activities. Businesses also need workers’ compensation and commercial general liability coverage, which protects against lawsuits and other claims related to your business.
What are the types of business insurance in Indiana?
Here are some common types of business insurance plans:
General Liability.
This covers you against lawsuits, whether they’re filed against you or one of your employees. The amount will depend on the value of the assets you have and the amount of damages that could be recovered. This policy typically excludes damage that occurs when you’re performing maintenance on your premises (unless it’s done by someone who performs maintenance on behalf of your company). So if you’re doing repairs on your equipment and that equipment causes a fire or other loss, it may not be covered under your policy.
Workers’ Compensation Insurance.
While this is more geared towards protecting employees, it’s important to protect yourself as well. An employee injury can cause a lot of damage to your business if not handled properly, and it’s up to the employer to make sure they’re protected financially. The most common coverage exclusions for this type of policy are for intentional torts and activities that result in bodily injury or bodily harm.
Auto and Truck Insurance.
Like with general liability, this covers the value of assets and damages in case of an accident with one of your vehicles.
Commercial property insurance
Property insurance covers accidents that happen on your business premises or against your business assets (such as equipment). It also covers damage to your building if it happens during a natural disaster. Damage caused by vandalism or other criminal activities is not covered by property insurance.
Business interruption insurance
This covers your lost income while the business is closed due to a natural disaster (hurricanes, floods, and so on), a personal injury claim (like an accident on the job), vandalism, and theft.
The following are some common exclusions from the business interruption insurance policy:
- Natural disasters. Common exclusions include floods and earthquakes. These are often treated as separate events, with separate policies and coverage limits.
- Civil unrest. Depending on the policy, damages resulting from riots, strikes, or civil commotion may be excluded from coverage.
- Terrorism. Many policies exclude damages resulting from acts of terrorism.
Professional liability
Professional Liability coverage protects against losses because of injuries and/or property damage that happens as a result of negligent acts committed by your employees, agents, and contractors. Some common exclusions from the professional liability business insurance policy:
- Prior acts. Coverage doesn’t extend to claims arising from any acts, errors, or omissions that occurred before the retroactive date specified in your policy.
- Intentional acts. A professional liability business insurance policy excludes coverage for any intentional acts or failures to act by a covered individual. If it’s alleged that you intentionally caused harm, this coverage won’t apply.
- Criminal acts. As with intentional acts and failure to act, a professional liability business insurance policy excludes coverage for any criminal acts committed by a covered individual.
How much does business insurance cost in Indiana?
Business size.
A small business with fewer than 50 employees will pay a lower premium than a large company with 100 or more workers. That’s because the cost of insuring a company rises with the square footage of its office space, so it makes sense that businesses with bigger budgets need more space for their staff.
Location matters too.
A locality with a high crime rate, for example, could present an additional risk for your business that would increase its premium.
Building size and condition.
Insurers use several factors to determine building conditions — including whether it has been abandoned or damaged by fire or natural disaster — but it’s rare for an insurer to raise the price of a policy because one facility is newer or larger than another.
The number of employees you have.
The more employees you have, the more likely you are to need business insurance (and the higher the cost).
How to choose the best business insurance
Know what’s covered.
If your business experiences a loss, will you be able to recover? Insurance policies have limits, exclusions, and deductibles that can have a significant impact on the value of your claim. Make sure you know what is (and isn’t) covered before you buy.
Shop around.
Your local insurance agent may offer good coverage, but it’s always worth shopping around for the best price, especially if there are cheaper options available. Just make sure you’re not sacrificing value for the price.
Consider an independent agent or broker.
An independent agent or broker represents a variety of insurance companies and can help you with your search for the best coverage and the best price.
Verify coverage requirements with vendors and landlords.
Make sure your vendors and landlords don’t require you to carry more insurance than you currently have. If they do, consider increasing your coverage to avoid litigation in the event of a claim.