What are the requirements for business insurance in West Virginia?
The minimum business insurance requirement for any business owner in West Virginia is general liability insurance. It’s a commercial insurance policy that protects you and your business from third-party claims of bodily injury, property damage, and personal or advertising injury.
Workers’ compensation insurance is another policy required by law if you have employees. The state’s workers’ compensation requirements mandate any business with at least three employees carry this coverage, regardless of whether they are part-time or full-time workers. The only exception is domestic employees who work less than 20 hours a week.
What are the types of business insurance in West Virginia?
There are several types of business insurance available, namely:
General liability
General liability provides coverage for bodily injury and property damage caused by your products or services. It also covers your legal defense costs if customers or visitors sue you to your locations. This type of insurance is important for any business that comes into contact with customers or the public.
General liability insurance excludes property damage that you cause. If you own a construction company, your general liability insurance will not cover the cost of repairing a garage that you accidentally destroyed while re-roofing.
Workers compensation
This type of insurance provides coverage for medical expenses and lost wages for employees who are injured or become ill on the job. It also provides coverage for legal expenses if an employee sues your company over a job-related injury or illness, such as carpal tunnel syndrome from repetitive motion injuries.
Exclusions:
Seasonal workers who work less than 30 days a year, certain agricultural employees, and domestic workers, like nannies or maids, are often excluded from coverage under workers’ compensation policies.
Professional liability
Professional liability is an important part of many businesses’ insurance portfolios, especially in medicine, law, and accounting, where there is a high risk for lawsuits alleging professional negligence or malpractice. This type of policy covers your legal defense costs when a customer sues you over a mistake you made while providing professional services to that customer, even if their lawsuit is unsuccessful.
Professional Liability excludes Intentional wrongdoing or damage by the professional and claims arising from errors, omissions, or negligent acts that happened before the policy was purchased.
Commercial property insurance
covers your building and its contents in the event of a covered loss. This includes everything from your building, equipment, furniture, and inventory, to computers and other business property.
Commercial Property insurance excludes losses caused by earth movement, including earthquakes and volcanic eruptions. Losses caused by surface waters (flooding). And Losses caused by building or structure collapse.
Commercial Auto insurance
covers your business autos and the vehicles you use to transport goods, equipment, or employees. Whether your company uses company-owned vehicles or reimburses employees for using their vehicles while conducting business, Commercial Auto insurance can help protect your business from liability arising out of car accidents.
Commercial Auto insurance excludes coverage for bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any auto, aircraft, or watercraft owned by you.
How much does business insurance cost in West Virginia?
Here are some of the most common things insurers will take into account when putting together your quote:
- Company size: Larger companies often pay lower premiums because they have more assets, and if something does go wrong, their pool of resources is more significant to draw from. However, smaller companies can offer more personalized services than larger insurers.
- Your business location: Insurance companies look at the number of claims filed in a particular region, as well as the frequency and severity of those claims. The higher the risk, the higher the premium. You can expect to pay more for business insurance if your office is located in an area with a high crime rate.
- Claims history: If a company has a history of filing claims regularly and for large amounts, its premiums may be higher than those with better loss history. Businesses with no claims on their insurance record are known as “preferred risks” and will likely be offered the lowest rates possible.
- Coverage limits: The higher the limit, the higher your rates. However, you may be able to save money by opting for a lower limit and paying more out-of-pocket in a worst-case scenario.
- Business Activities: The types of activities your business conducts, such as construction and manufacturing, may cause increased rates. If this is the case with your company, look for ways to reduce risk or increase safety measures.
How to choose the best business insurance in West Virginia
Here are tips that can help you find the best business insurance for your needs:
- Consider how much coverage you need: Do you have a small office with limited assets? Or do you operate a large warehouse with expensive equipment? The answer to these questions will help determine how much coverage you need.
- Check on your local laws: Some states require all professional services businesses to carry malpractice insurance. In contrast, others only require it if your company employs more than one person or provides a specific type of service.
- Shop Around: Don’t just go with the first party that you see advertising. Get quotes from multiple insurers and compare what they offer in terms of plans, coverage, and cost. One insurer may be able to beat out another by saving you hundreds or thousands of dollars per year.
- Experience: Find out how long each potential insurer has been in business and how many people they employ. You want an insurer with the financial resources and expertise to support you now and down the road, as your business grows.
- Know what’s included and what’s excluded: Read your policy carefully and ask questions if there’s anything you don’t understand. It’s a good idea to have an attorney review the policy before you sign it, too.