Business Insurance Tampa FL

Business Insurance Tampa: The Ultimate Guide

In Florida, small businesses are crucial for the state’s economy. This is because they make up 99.8% of the companies in the state. However, if you are thinking about starting a small business in Tampa, there are certain things you should consider doing for your business to protect it. 

Although Florida is business-friendly, with no state income tax and flexible regulations that allow common business practices, the Florida court offers large sums of money to plaintiffs. Many small businesses purchase multiple insurance policies to protect themselves, even though it’s not legally required. 

Here’s what you need to know about business insurance in Tampa. 

Business Insurance Tampa: The Ultimate Guide

Business Insurance in Tampa, Florida

Choosing the right business insurance in Tampa doesn’t have to be confusing or expensive. Firstly, the United States administration of small businesses offers a guide for finding the right type of coverage for your specific needs. In Florida, business insurance companies offer various types of insurance policies, including home business insurance, general liability, workers compensation, errors and omissions, and professional liability coverage policies. 

East Insurance Group offers business insurance in Tampa, Orlando, Miami, Gainesville, and all other cities in Florida. 

Required Business Insurance Policies in Tampa

According to the state law in Florida, there are specific policies that are required for businesses, including:

Workers’ Compensation Insurance

If your company has four or more employees, either full-time or part-time, Florida state law requires you to have workers’ comp insurance. However, if your company is in the construction business, you must have workers’ comp insurance, even if you have one employee. 

Commercial Auto Insurance

If you use vehicles for business purposes, you must cover them with commercial vehicle insurance. Florida requires a $10,000 claim per accident and $10,000 coverage for bodily injury for property damage liability.

Recommended Business Insurance in Tampa

General Liability Insurance Tampa

Although not required, general liability insurance is useful as it covers risks such as work injuries and property damages. As a business owner, one of your main priorities is to protect your finances from various risks, such as damage, theft, or lawsuits. 

The liability insurance costs in Tampa depend on insurance companies. Factors that affect the liability insurance rates are:

  • Business’s gross sales
  • Payroll for employees and business owners
  • The location of the business
  • Any subcontractor exposures. Insurance rates vary at a rate of $1,000, considering those factors.

A typical Florida business can expect to pay between $300 and $5,000 per year for the insurance with the general liability. However, the final cost of Product Liability Insurance from one company to another will vary based on the SIC code or the insurer’s own classification system. Other factors utilized to increase insurance costs include the business’s nature, physical location, previous claims experience, and industry years.

Professional Liability Insurance Tampa

Also known as errors and omissions insurance, professional liability insurance covers professionals from lawsuits due to negligence or if they didn’t perform as it was expected of them. 

Cyber Liability Insurance Tampa

This type of policy covers businesses from cyber-attacks and data breaches. Cyber liability insurance covers legal fees, client notification costs, and other related costs. 

Business Owner’s Policy Tampa

A business owner’s policy is a combined policy that consists of combined property insurance and insurance for general liability. Many small businesses in Florida choose this policy as it is cost-effective and because it is useful if they rent or own an office that works directly with clients and customers. 

How Much Is Business Insurance in Tampa?

The cost of business insurance in Tampa, Florida, depends on many factors, including:

  • Type of business
  • Number of employees
  • Type of policy

Here are the median costs for Florida’s most recommended insurance policies for companies with limited liability: 

  • General Liability Insurance: $500 per year, or about $42 per month
  • Business Owners Policy: $636 per year, or $53 per month
  • Workers’ Compensation Insurance: \$560per year, or about \$47 per month
  • Professional Liability Insurance: $713 per year, or about $59 per month
  • Cyber Liability Insurance: $1,675 per year, or about $140 per month
  • Commercial Auto Insurance: $1,704 per year, or $142 per month

Remember that limited liability companies or LLCs have different needs. To decide which type of coverage you need, it’s always a good idea to analyze the biggest risks to your business and then choose the right policy. 

Do I Need Business Insurance for an LLC in Tampa?

Although not required by the law in Florida, it is recommended that every business owner has some kind of insurance to protect their assets in case of an unfortunate event.

Who Needs Business Insurance in Tampa?

While all small business owners should think about having business insurance, there are some professionals who use it more than others, including:

Confused about business insurance in Tampa, or need some help getting a quote for your business? Call us or fill out a quote request form and get all the information you need fast and for free!