It’s not a question of if, but when. No matter how careful you are with your Rhode Island business, there’s always the potential for fire, theft, natural disasters, or legal claims. Business insurance helps cover the costs of these incidents. It’s an essential part of any business owner’s strategy and can help you avoid bankruptcy should anything happen to your company. Now that you know its importance, 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 Rhode Island?
Rhode Island requires business owners to carry workers’ compensation and liability insurance. Rhode Island does not mandate additional coverage such as commercial auto or business owners policy.
Rhode Island requires all employers with one or more employees to carry workers’ compensation insurance. This includes full-time, part-time and temporary employees. Although independent contractors are not considered employees, you may be required to carry workers’ compensation insurance if the independent contractor is an employer, in other words, if they have employees.
What are the types of business insurance in Rhode Island?
Here are some types of business insurance:
General liability
General liability insurance covers property damage, bodily injury, and personal injury that occurs due to running your business. This can include injuries sustained on your property or damage done to someone else’s property — like if a client gets hurt in your office and decides to sue. This type of insurance usually also covers medical expenses for anyone who gets injured as a result of doing work for you and advertising injuries (libel and slander). General liability doesn’t cover professional mistakes, so you’ll need professional liability insurance if you want that protection.
Workers compensation
Workers Compensation insurance is a state-mandated insurance program that provides coverage for medical care and cash benefits to employees who are injured or become ill due to their job. This coverage usually includes employer liability against lawsuits brought by employees who claim their injury or illness was caused by their employment.
Here are some things excluded from standard workers comp policies: Intentional acts, Auto accidents, and Uninsured subcontractors.
Commercial property insurance
Commercial property insurance covers your business’s physical assets. It protects your business from property damage due to fire, theft, or vandalism. It also covers the cost of replacing any lost or damaged inventory. It is one of the most important types of small business insurance as it protects against a wide range of issues. Still, it can be supplemented by other policies such as Product Liability Insurance.
However, it usually doesn’t cover expenses above normal operating costs that you incur while recovering from a loss (such as moving your office temporarily). To cover those costs, consider purchasing additional business income with extra expense coverage available in some states.
Product liability
Product liability insurance protects you from claims alleging that your product caused injury or damage to a person or their property. This type of insurance is an essential safeguard for many businesses and often requires suppliers.
Exclusions:
Marketing defect: A product with inadequate instructions or warnings about its use (such as a bottle of bleach with no label warning users not to mix it with ammonia).
Failure to warn: The manufacturer failed to adequately warn consumers about the known risks of using the product, for example, not including an alert on a prescription drug that can cause congenital disabilities if taken during pregnancy.
Commercial Auto insurance
If your business owns vehicles, such as delivery trucks or cars, you need commercial auto insurance. This type of policy protects your business if you or an employee is involved in an auto accident while driving on company business. It also covers physical damage to company vehicles.
Commercial Auto normally excludes:
Liability coverage for hired and non-owned autos (such as a car you borrow from a friend)
Use of a covered vehicle in the business of selling, repairing, servicing, storing, or parking motor vehicles
How much does business insurance cost in Rhode Island?
Here are some common factors that affect your business insurance premiums:
Company size: Smaller companies tend to pay higher premiums than larger companies since they are at greater risk of going out of business or filing bankruptcy. This is because smaller companies are less likely to have established themselves in their industry and aren’t as financially stable as larger companies.
Your business location: If your company has a high-risk location, such as in an area prone to natural disasters or crime, this will increase your insurance premiums. If you move into a new location with better risk factors, you may be able to save money on insurance in the future by shopping around for cheaper rates.
Claims history: If your business frequently files claims, you can expect to pay a higher premium for coverage moving forward. Insurers want to know that you’re not a high-risk client who will file a claim at any sign of trouble, but rather someone who uses their policy only when it’s necessary and warranted.
Coverage limits: The higher your coverage limits, the higher the premiums you’ll pay for your policy. Your carrier will only pay up to your policy limits, so higher limits mean greater financial protection for your company.
Business Activities: It’s very important to accurately describe what kind of work you do when getting business insurance quotes. This is because some activities are riskier than others and require more coverage. For example, running a construction business requires a very different type of policy than running a web design firm.
How to choose the best business insurance in Rhode Island
To find the right policies for your company, consider the following tips:
Consider how much coverage you need: This will depend on your company, size, and risks. There are many different types of insurance that small businesses need, so it’s important to consider them all before you make your decision.
Check on your local laws: Employer liability insurance is likely a legal requirement if you have employees. In addition to this, if you own premises or public liability insurance will likely be a legal requirement as well.
Shop Around: If you’re not sure which types of policies are best for your needs, shop around with a few different companies so that you can see what they offer and whether or not they suggest the same types of policies.
Experience: The more specialized knowledge they have about the risks and exposures unique to your industry, the better off you will be in terms of coverage and pricing.
Know what’s included and excluded: Make sure you know exactly what is covered by a particular policy and what isn’t so that there are no surprises for your business if you need to make a claim.
