North Carolina business owners have a lot to worry about. There’s no shortage of concerns from taxes to regulations that can cause headaches and slow growth. Fortunately, there’s one way to take at least some of those worries off your plate: business insurance.
Finding the right policy for your company isn’t always easy, especially with so many options out there. To help you find the best one for you, 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 North Carolina?
General liability insurance and workers’ compensation insurance are mandatory for all North Carolina businesses. There’s no state law requiring you to carry general liability insurance as a small business owner in North Carolina. However, if you have employees, you must carry workers’ compensation insurance. If you want to bid on most contracts in the state, including with local municipalities and state agencies, you’ll need both general liability and workers’ compensation coverage. Even if you don’t have employees and only need general liability coverage, it could still be a good idea.
What are the types of business insurance in North Carolina?
Here are some of the most common types of business insurance our customers buy, along with their average cost:
General liability
General liability protects from bodily injury and property damage that happens to your customers. The policy covers the cost of defending against a lawsuit, paying for settlements or damages, and paying for medical bills resulting from the injury. If a customer trips on the floor in your store and breaks his arm, this insurance can help pay his medical bills and compensate him for time off work.
A general liability policy may exclude:
Employees and independent contractors of the business
Injuries or damages that result from intentional acts
Injuries or damages related to professional services
Workers compensation
When employees are injured on the job, workers compensation insurance covers their medical expenses and can replace some of their lost wages while they’re recovering. It also protects employers by limiting their liability for on-the-job injuries and illnesses.
The main exclusions are Independent contractors (a person who works for themselves), Sole proprietors, and family members living in your homes, such as spouses and children.
Professional liability
Also known as errors and omissions (E&O) insurance or malpractice insurance, it helps protect businesses that give professional advice or provide a professional service to clients. This type of coverage will cover losses arising from negligence claims, including injury or property damage, but not bodily injury or advertising injuries.
Product liability
This policy covers damage or injuries to people or property that occur due to using your product. If you sell products directly to customers, this type of insurance will protect you from lawsuits that result from someone getting hurt while using your product.
Product liability normally excludes faulty design; damage to the product itself; faulty artistry or materials used in manufacturing; breach of contract; and personal injury to employees (workers’ compensation, which is required in most states, pays for these losses).
Commercial Auto insurance
You will need commercial auto insurance if you use vehicles for business purposes (not including commuting). This includes cars, trucks, vans and trailers and can be written for owned vehicles and non-owned vehicles used for business such as rental cars.
There are many things Commercial Auto insurance will cover, but there are also many things that it does not. Here are a few of the main ones:
Personal use of your vehicle
Damage to property owned by your business.
Vehicle damage due to poor maintenance or neglect.
How much does business insurance cost in North Carolina?
Business insurance costs are calculated using a set of rate factors that combine to give you a special rate for the policies you carry. These factors include:
Company size: If you run a very small business, you won’t be paying the same price as an enterprise with thousands of employees. As such, companies with more people on their payroll or a larger income will typically pay more for commercial insurance than sole traders or microbusinesses.
Your business location: If your business is located in a higher-risk area, such as an area prone to natural disasters, or if there is an increased crime in the area where you are located, your property insurance rate may be higher than that of a business located in an area with less risk.
Claims history: Certain industries have a higher risk than others. If you’re in an industry with frequent claims, such as construction or transportation, then you are going to have higher premiums than if you’re working in a lower-risk industry like IT services. Additionally, if you’ve made more claims on previous policies, your rate will rise as well.
Coverage limits: The more you insure, the more it costs. You can get lower premiums by lowering coverage limits or raising deductibles (the amount you pay out-of-pocket before your insurance kicks in).
Business Activities: if you’ve chosen a risky industry like roofing or landscaping that’s more prone to accidents or damage, you might pay higher premiums for worker’s compensation or general liability insurance than someone who works in an office environment where there’s less risk of accidents or injuries.
How to choose the best business insurance in North Carolina
Here are some tips that can help you choose the right coverage:
Consider how much coverage you need: if your company owns a lot of expensive equipment or inventory, then you’ll want higher coverage limits. If your company performs services that have a high risk of injury or property damage lawsuits (such as construction), then you may also want higher coverage limits.
Check on your local laws: In many states and territories, employers must provide workers compensation insurance for their employees to protect them if they become injured while at work.
Shop Around: You want to find an insurer who understands the needs of your business and can customize a plan that works for you. You’ll also want to get several quotes to find the best rate available.
Experience: An experienced agent is familiar with the types of losses that frequently occur in your industry and can help make sure you have the proper coverage. The agent should also be able to help you identify any unique risks related to your business, such as specialized equipment or processes that could lead to problems for your company if not properly insured.
Know what’s included and excluded: Pay close attention to what is included and excluded from the policy. For example, some property policies exclude certain types of property from coverage, such as water damage from a storm or flood. If one of those events occurs, you could end up paying out of pocket for damage that wasn’t covered.
