North Dakota business owners are often surprised to learn how many risks are covered by business insurance. From a liability lawsuit to a fire that destroys your property, you may find yourself wishing you had invested in commercial insurance. It can be hard to know which insurance company is best for your needs and budget with so many options and choices. Luckily, 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 Dakota?
In North Dakota, if a business wants to get out of the workers’ compensation system, they can do so by proving they’re financially able to pay for their employees’ injuries and illnesses themselves. To prove this, they need to have commercial liability insurance. That’s because liability insurance will cover an injured employee’s medical expenses.
Since businesses are required to have workers’ compensation or commercial liability insurance, it might seem like they’re also required to have general liability insurance. But there’s an important distinction between commercial liability and general liability.
What are the types of business insurance in North Dakota?
A good business insurance policy will protect your investment and provide peace of mind. Here are some of the most common types of business insurance policies:
General liability
This type of insurance covers damages caused by you or your employees to a third party or their property. It also covers injuries or illnesses sustained by a third party while in your company offices/premises. Some states require general liability insurance when registering a business. Some clients will not work with you unless you have this cover.
General liability excludes:
Bodily Injury, Property Damage, and Personal Injury.
Bodily Injury and Property Damage.
Property damage, bodily injury, and personal injury.
Workers compensation
Workers’ compensation insurance requirements are established by state law and vary from state to state. Most states require that employers carry workers’ compensation insurance if they have one or more employees. Some states allow employers to self-insure their workers’ compensation risk if they meet certain requirements.
Workers’ compensation normally excludes Intentional self-injury or suicide and Injuries sustained while committing a crime.
Professional liability
This covers damages arising from errors or omissions while offering a professional client service. For example, if your client sues you for failing to provide the expected service outcome, this cover will cover all financial losses incurred due to the lawsuit.
Professional liability normally excludes “bodily injury” or “property damage”, so it does not cover lawsuits due to accidents. It does cover lawsuits due to errors and omissions, even if they are alleged to have occurred through negligence or by other means.
Product liability
Product liability applies to a wide range of businesses, from manufacturers, wholesalers, and retailers to importers, distributors, and internet sellers. However, some industries are more likely than others to need product liability insurance — for example, if you’re a food manufacturer or retailer, you may need product recall cover as well.
Not all insurers will cover product liability claims resulting from faulty design or manufacturing; it’s more common for product defects to be covered under warranty before they reach the customer. Therefore, you should check the small print carefully when comparing quotes — many policies will exclude claims arising in this way.
Commercial Auto insurance
Commercial auto insurance covers automobiles used by your business, such as delivery trucks or company cars. It is designed to protect against the cost of damages due to accidents and other situations, including injuries your employees may suffer while driving for work purposes.
Commercial Auto insurance typically excludes coverage for:
Vehicles owned by a person or family
Vehicles used to commute between home and work (both commuting to one location and multiple locations)
Vehicles used primarily for family/household duties
How much does business insurance cost in North Dakota?
Though there are many facets of insurance, let’s take a look at some of the top factors that impact business insurance rates:
Company size: Larger companies often pay more for business insurance than smaller companies because larger businesses have more assets to protect. If your company has more to lose, you’ll likely pay more for insurance coverage.
Your business location: Insurance companies use zip codes and locations to provide accurate coverage costs. If a location is in the middle of a flood zone or has high crime rates, your insurance premium will be higher than if you are located in a quieter area.
Claims history: A history of claims with previous insurers can impact your current and future premiums. Some insurance carriers may not offer coverage to certain industries or business types that pose a greater risk to their bottom line.
Coverage limits: The more coverage you buy, the higher your premium. That’s because there is always a risk that you could have a large loss that would require you to use your policy, and the insurance company is taking on more of your risk with higher limits.
Business Activities: Different businesses face different risks. For example, a business that uses heavy machinery or other equipment that could cause injury to employees will pay more for workers’ compensation insurance than an office-based business.
How to choose the best business insurance in North DakotaÂ
Here are some tips on how to choose the best business insurance for your company:
Consider how much coverage you need: it’s important to make sure you have enough coverage. For example, if you own commercial property, you might want to protect yourself against losses due to fire or vandalism. If you sell products online, you might want to look into product liability insurance.
Check on your local laws: Some businesses are legally required to purchase certain policies. For example, if you’re in the food industry, check with your local health department about getting food liability insurance. Even if it isn’t required by law, most health departments strongly recommend having this type of coverage.
Shop Around: You shouldn’t settle for the first quote or policy that comes along. Every insurance company has different requirements and offers different types of policies, so it’s best to look around before deciding.
Experience: For some small businesses, getting a big insurer is essential, but for others, this is not necessary. Remember that insurers with a lot of experience in any sector may better understand the risks involved in that industry.
Know what’s included and what’s excluded: It’s important to know exactly what risks will be covered by the insurance policy and what will not be covered. It is important to know if things are not covered because you don’t want to have to pay out of pocket for anything unexpected.
