Business Insurance Virginia

Business Insurance Virginia: Here’s What You Need to Know

If you are a responsible business owner in the Old Dominion State, then purchasing business insurance should be one of your priorities. Business insurance in Virginia protects your business, personal assets, vehicles, and people. Now that anyone can sue anyone for anything, it pays to have suitable business insurance to rely on. 

You should always keep in mind that the industry you are in will expose you to legal claims and settlements that can ruin your finances. No matter which part of Virginia you operate, having enough business liability is an integral part of any business plan. Here’s what you need to know about Virginia business insurance.

A man sitting at his desk and typing on a laptop.

How Much Does Business Insurance Cost in Virginia?

Every business in Virginia is unique, but according to the standard guideline, the kind of Virginia business you manage or products that you manufacture affects how much Virginia small business insurance you need. 

The average cost of Virginia commercial insurance is between $300 and $5,000 per year. If the business you operate is highly dangerous, like constructing trades, or has an immense volume of interaction with customers like those of a retail or restaurant business, you might want to think about increasing your business insurance coverage. 

Keep in mind that if you operate your business outside your home, your renter’s and homeowner’s insurance will have limited coverage over your business liability and loss. 

How Does Your Insurance Company Determine Your Business Insurance Quote?

Virginia business insurance quote is dependent on several key factors, such as the kind of products and services you offer, the number of staff you employ, your claims history, and your track record. Here’s a quick run-down of each factor that impacts the amount of your business insurance quote:

  • The Number of Independent Contractors/Employees – The more people you employ, the higher your insurance quote for General Liability, Errors and Emissions, and Workers’ Compensation Insurance.
  • The Number of Sales – The more income your business earns, the greater the risks for a possible professional liability lawsuit.
  • The Type of Services – Do you work with other businesses in Virginia that have plenty of essential data? Or do you work at your customers’ workplace? Differences like these in the type of work you provide can increase or decrease your business insurance quote.
  • Location – Aside from complying with different state requirements, your business liability will change vary according to the laws in your state. Some states offer higher compensation for damages caused by personal injury lawsuits.
  • The Contracts You’ve Signed – Your work history and contracts will greatly affect your Errors and Omissions Insurance. If you buy insurance that has a Prior Acts Coverage, the insurance company you worked with will require you to submit past contracts and the type of work you’ve done in your previous operations.
  • Your Claims History– Business owners who have filed more insurance claims in the past tend to pay higher quotes for coverage.

Do Independent Contractors Need Business Insurance in Virginia?

The simple answer is yes. Independent contractors do need to have insurance for different reasons. Depending on the services and products you offer, you might need errors and omissions insurance, liability insurance, or both. Knowing about the various kinds of insurance, its benefits, and the hazards of having none can help you secure your business and guarantee that every customer you work with will trust you. 

Apart from liability insurance, independent contractors might need other kinds of insurance, like workers’ compensation, errors and omissions insurance, and even a business owner’s policy. Luckily, Virginia small business insurance is offered everywhere to safeguard your company from dangers, threats, and risks. 

Types of Business Insurance in Virginia

1. Professional Liability Insurance

Professional liability insurance or popularly known as errors and omissions (E&O) insurance, protects businesses by covering claims against harm caused by inadequate work or mistakes. When it comes to professional liability insurance, there’s no such thing as one size fits all. Every industry is unique and has its risks that will be accommodated in a personalized coverage designed for businesses.

2. Property Insurance

Whether you operate in a rented or owned workspace, property insurance products are highly-suggested. This type of insurance pays for signage, equipment, furniture, and inventory in case of theft, storm, or fire. But take note that extreme natural circumstances such as earthquakes and floods are not covered under this insurance policy. If you operate in an area that is exposed to these kinds of hazards, discuss with your insurance company to design a separate coverage. Check companies and providers for insurance products that give better coverage on property damage.

3. Workers’ Compensation Insurance

Business owners and companies in Virginia that employ one or more people need to add workers’ compensation insurance to their existing business insurance policy. This specific insurance will pay for the medical bills, disability, and even funeral expenses and death benefits in case an employee suffers from accidents. They could have sustained bodily injury or passed away due to their work.

Even if workers rendered less risky work, sustained slip and fall injury or acquired medical complications like carpal tunnel syndrome should also be included in your coverage. All of these could lead to an expensive claim and could harm your Virginia company. 

4. Home-Based Businesses

Most professionals in Virginia started their little businesses inside their homes. However, homeowner’s insurance won’t pay for losses of home-based businesses, the same way as property insurance does. If you are working at a home office in Virginia, talk to your insurance company for extra insurance coverage to your inventory and equipment in case of unforeseen incidents. Property damage should also be a concern, and so is protection from a customer who does not honor his contract.

5. Product Liability Insurance

Product liability insurance is useful if your Virginia business revolves around the manufacturing of goods distributed on the general market. No matter how tight your safety measures are to guarantee that your products are in excellent condition, there’s still a possibility that you’ll face a lawsuit caused by damages on one of your products. That’s why product liability insurance coverage is always a good idea in Virginia. It protects a business from specific risks with coverage that is specifically tailored to a particular kind of product.

6. Vehicle Insurance

If your Virginia business needs vehicles to operate, then you need to ensure that your company-owned vehicles are completely insured. This will protect you from costly accident expenses. If your workers are using their cars for business purposes, their insurance will pay them in case of a vehicular accident. One limitation of this is if they are delivering services and products with charges. 

7. Business Interruption Insurance

If your Virginia business is unable to operate due to a disaster or tragic circumstance, business interruption insurance will greatly help your company. You’ll suffer from loss of income if your workers can’t make sales calls, manufacture products, or work in your office. For a business that requires the physical presence of employees to operate, business interruption insurance will cover the income that you and your customer may have lost.

Having the correct insurance will help your business combat major financial drawbacks due to catastrophic circumstances or lawsuits. Discuss with your insurance company the kinds of insurance that are suitable for your business and design a policy that highlights all of them.

Virginia Business Insurance Requirements

  • Mandatory – Business owners that operate in Virginia are required to carry workers’ compensation insurance if they have three or more employees, may it be part-time or full-time. Sole proprietors or partners that don’t employ anyone aren’t required to carry workers’ compensation. Moreover, those who are members of a Limited Liability Company or LLC are also exempted. Corporate officers have an option to dismiss accident coverage but not for occupational health complications. Additionally, Virginia requires that drivers should carry minimum automobile insurance: \$25,000 per person for bodily injury and \$50,000 per accident.
  • Optional – Business Owner’s Policy (BOP), Employee Disability Insurance, Errors & Omissions (E&O), Employment Practices Liability Insurance (EPLI), Professional Liability, Commercial Property Insurance, and Product Liability.

Are you still confused about Business Insurance in Virginia, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!