Companies in Delaware can protect their livelihood by seeking business insurance to preserve their earnings from work-related incidents like a customer tripping or an employee sustaining an injury at work. The Diamond State is home to more than 80,000 small businesses that provide the financial backbone for the state's companies. You'll need the right business insurance coverage to keep your business successful in Delaware.
Federal laws determine what businesses are required to acquire general liability protection anywhere in Delaware, from Wilmington to Dover.
Workers' compensation insurance
Delaware law requires you to carry workers' compensation insurance if you have one or more employees, whether full-time or part-time. Employers cannot charge an employee for the costs of coverage.
This plan covers wages for work-related injuries regardless of their severity. The plan may also extend to payments if disability benefits are enabled while the worker is still recuperating.
Commercial auto insurance
Delaware law mandates that all business vehicles be insured by commercial motor vehicle insurance. This policy pertains to accidental death and injury associated with work vehicles.
Delaware's auto insurance requirements are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $10,000 property damage liability per accident
- $15,000 personal injury protection for any one person
- $30,000 personal injury protection for all persons injured in any one accident
Trucking companies may need to follow more maintenance regulations. Although not required, when driving a personal vehicle for work reasons, it should be covered by hired and non-owned automobile liability insurance (HNA) and personal automobile policies. It can be added to general liability insurance or a business owner's policy (BOP).
Professions in Delaware that get insured:
- Architecture & Engineering
- Beauty
- Commercial Maintenance
- Consulting
- Fitness
- Health
- Home Services
- Marketing
- Property
- Retail
- Therapy
Types of Commercial Business Insurance Offered in Delaware
Depending on your company's specific circumstances, you will most likely need to carry some or all of the following types of coverage:
General liability insurance
General business liability insurance covers common dangers like customer injury, customer property damage, and public liability. It helps protect your business from the high cost of litigation and helps you obtain leases and contracts.
Business liability insurance coverage offers compensation payments for injuries or damage to a client at your business or if you cause damage to another individual's property caused by negligence on your part. This insurance policy also covers personal injuries and court-awarded settlements.
This policy is essential for all Delaware businesses. Its best for:
- Customer injuries at your business
- Damaged customer property
- Libel and other advertising injuries
Professional liability insurance
Professional liability insurance is also called errors and omissions insurance, and it's designed to protect small businesses from the expenses of lawsuits related to unsatisfactory work.
Professional liability insurance is designed specifically for businesses making income off their specialized knowledge. Even the most experienced and meticulous service provider makes mistakes. Unfortunately, prospective clients might need to be more understanding when your mistake loses them time or revenue. Professional liability insurance protects your company from losses if you must go to court due to an unsatisfied customer. Its best for:
- Work mistakes and oversights
- Professional negligence lawsuits
- Late or incomplete work
Cyber liability insurance
Cyber security insurance, also called cyber liability insurance, safeguards small businesses from the financial consequences of a data breach or malicious software attack. It covers the costs of customer notification, credit monitoring, legal expenses, and fines. Cyberattacks and data breaches are costly and increasingly common for small businesses. With their limited IT security, small businesses are frequently a weak target for cybercriminals.
A cyberattack doesn't just cause disruption; it can also cause businesses to close their doors permanently. In fact, 60% of small companies drop within six months of being hit by a cyberattack. Cyber insurance helps you recover from the financial consequences of losses caused by cyberattacks and data breaches. Its best for:
- Data breach lawsuits
- Client notification expenses
- Fraud monitoring costs
Business owner’s policy
A business owner's policy (BOP) package comprises general liability insurance with a commercial property insurance policy. It is usually cheaper than buying the policies separately. If you own a business or rent a workspace, you may need a business owner's policy (BOP). In addition, client contracts typically include general liability coverage.
A BOP is an intelligent selection for small service providers who serve the general public and own valuable business property even when no liability is needed. This option protects against monetary losses because of customer accidents and incidents, like fires and burglaries. Its best for:
- Customer injuries
- Damaged customer property
- Damaged business property
Workers’ compensation insurance
Workers' compensation insurance covers the costs of medical treatment and lost wages incurred by employees who are injured on the job. The expenses associated with medical care can escalate quickly.
Workers’ comp is required in almost every state for businesses that have employees. Small businesses require an HR policy as soon as they hire their first staff member. Even if not required by law, this policy can provide significant protection against medical and surgical expenses and employer liability for workplace injuries, such as a slip and fall in the office, an injury from tools or machinery, or an occupational injury.
You can count on workers' compensation to cover medical treatment and missed wages if you've injured yourself while working or if an injured employee files a lawsuit against you for neglecting to prevent an accident.
If you have no workers' compensation insurance, your business will bear the cost of medical treatments not covered by that insurance. And several states mandate costly penalties for noncompliance.
Commercial auto insurance
Commercial auto insurance covers legal costs, medical expenses, and property damage when a company vehicle is involved in a collision.
If your organization owns cars, you will likely need commercial auto insurance. Each state mandates commercial auto insurance coverage for corporate vehicles. New Hampshire and Virginia are the only places in the United States where car insurance is not mandatory. Drivers are still liable for damages they cause, though.
You can depend on commercial vehicle insurance whenever you or an employee require medical care or becomes involved in legal proceedings due to an auto accident. If you do not buy commercial vehicle insurance, your company will be responsible for all medical and legal expenses, which can become quite expensive.
Delaware Small Business Insurance Requirements
Most businesses in the state of Delaware must acquire workers' comp insurance. If your firm does not carry this coverage, employees who are injured or sick on the clock may sue your business. You may also find yourself fined by the state Department of Labor.
In Delaware, all privately owned vehicles must be covered by commercial auto insurance. Such an insurance policy covers the costs associated with work-related traffic accidents. Trucking companies may need additional coverage to ensure that they abide by regulations.
Cost of Business Insurance in Delaware
A median of $49 per month is the typical business insurance cost in Delaware across all industries our business engages in. Commercial insurance may be very affordable for Delaware small business owners. Factors that influence insurance rates to include:
- Type of business and its risks
- Business revenue and location
- Number of employees
- Type of insurance purchased
- Policy limits and other coverage options
Get a Quote For Delaware Business Insurance
Visit us at InsuranceAdvisor.com if you need a price for your Delaware business. It’s easy, just choose your state, then pick your coverage options from General Liability, Commercial Property, Business Auto, Umbrella, and Workers’ Compensation insurance, and answer the application questions. Once we receive your request, we will provide you with a quote as quickly as possible.
Why Choose Insurance Advisor for Commercial Insurance in Delaware?
We can provide quotes with many different insurance carriers, and you can request quotes from the comfort of your home, office, or anywhere by visiting us at InsuranceAdvisor.com. Once you create an account, your business information is stored, and you can come back at any time to request other lines of insurance, get a certificate of insurance, and update your information.
Frequently Asked Questions (FAQ) about Delaware
1. How much is business insurance in Delaware?
Delaware's median business insurance price is $49 monthly across all industries we serve. Factors that will determine your company’s actual costs include:
Your industry and day-to-day risks. The types of insurance you buy and policy limits. How many workers do you employ?Business payroll: Workers’ compensation coverage is based on your company’s payroll and the job duties of each employee. The more employees=more payroll=more premium
2. Where can I get inexpensive business insurance in Delaware?
If you want more occurrences and claims to be covered, you will pay more for insurance. The cheapest insurance is never the best insurance. We recommend that you get more than one quote from different insurance companies. This way, you can see how one insurance company’s rates compare to another’s. Always read the exclusions in the policy. This is where you find what is NOT covered. Get an affordable option with the most common mishaps likely to happen to your business insured and not listed under exclusions.
The old saying, “You get what you pay for,” is very accurate with business insurance.
3. What types of business insurance are required for businesses in Delaware?
Depending on your circumstances, your company may probably be required to carry some or all of the following types of insurance:
- General liability insurance
- Workers’ Compensation Insurance
- Professional liability insurance
- Commercial auto insurance
4. Which insurance companies are best in Delaware?
Like our agents at Insurance Advisor, an experienced Delaware commercial insurance agent can determine the best insurance company for your business. Insurance companies often specialize in specific business industries, which can vary from state to state. We will match your Delaware business with carriers that know your industry and can meet your company’s insurance needs. Visit us at InsuranceAdvisor.com to request a quote for General Liability, Workers’ Compensation, Business Property, Business Auto, or Umbrella insurance.
5. How to find out if a business has liability insurance in Delaware?
Make an appointment with your vendor to request a copy of their public liability certificate, which will provide the policy number with information and documentation related to this insurance. Call the insurance provider and request confirmation of the insurance's validity by calling the reference number given on the certificate.
6. What is the cost of essential business liability insurance in Delaware?
The median cost of a general liability insurance plan ordinarily ranges from about $42 to about $55 each month. This data is based on the median cost of a policy for general liability insurance.