According to the US Small Business Administration, Ohio is home to more than 980,000 small businesses, accounting for 99.6 % of all companies in the state. Every small business should take the necessary measures to safeguard business continuity, cash flow, and assets.
No matter the company size, all types of business insurance are relevant for business owners. Customer or visitor injuries, third-party property damage, damage to business-owned assets, and employee injury can all jeopardize a business's financial resources and survival.
Ohio law mandates that all companies with employees carry workers' compensation insurance. Entities can obtain coverage directly through the Ohio Bureau of Workers’ Compensation state's insurance or meet the stringent requirements of self-insuring. Unlike most other states, Ohio's unique laws prevent businesses from purchasing coverage from private insurance providers.
State law doesn't require other kinds of insurance, such as general liability, but there are financial responsibility laws for vehicle use on public roads. However, even if not statutorily required, a business should still buy General Liability, Property, and Workers' compensation insurance for the business’s longevity. Potential clients, landlords, and banks often expect that you have specific business insurance coverages and limits before you can begin working with them.
Types of Commercial Business Insurance Offered in Ohio
Business Insurance in Ohio often comes in a package that may include the following coverages:
General Liability Insurance
Many business owners and self-employed professionals in Ohio have general liability insurance. Suppose your company’s operations cause bodily harm to someone accidentally. General Liability insurance will help by providing legal counsel to defend your business and cover the damages awarded to the injured party, which is made up of amounts for medical expenses, economic loss, and pain and suffering.
Cleaning businesses and contractors often add coverage for expensive mobile equipment that they take from job site to job site. This insurance is called Inland Marine coverage. This insurance coverage helps replace necessary equipment and machines if damaged by a covered peril or stolen.
Workers’ Compensation Insurance
Businesses with actual employees in Ohio are required by law to have workers' compensation insurance.
Ohio is one of four U.S. states that operate a state-run insurance fund for workers’ compensation coverage, and other states are North Dakota, Wyoming, and Washington. Nearly two-thirds of employers in Ohio pay their premium to the state fund, which covers the statutory benefits to injured employees for medical treatment and lost wages. If your company doesn't purchase Ohio's workers' compensation, you and your business can be fined and penalized or even face criminal charges!
Commercial Auto Insurance
Ohio law requires drivers to carry at least $25,000 per person and $50,000 per occurrence for bodily injury liability and a $25,000 property damage liability limit. These are minimum required auto limits, a business with titled vehicles should purchase higher limits than the minimum required; we suggest a $1,000,000 bodily injury and property damage liability combined single limit. Business use of vehicles should be insured under a business auto insurance policy. Personal automobile insurance might not pay a claim when a vehicle is in an accident while used for business.
Firms that rent vehicles or occasionally have employees use personal vehicles for business use would benefit from upgrading their commercial auto insurance, including liability for hired and non-owned employee vehicles. This liability coverage is provided for hired, leased, borrowed, and employee-owned vehicles.
Professional Liability (E&O) Insurance
Professional liability insurance is also known as errors & omissions (E&O) liability coverage. It is a type of liability insurance that will help Ohio businesses pay for liability from someone accusing your professional firm or employee of having made a professional mistake, missing a deadline, or failing to do the work that results in financial loss to your client.
Ohio Small Business Insurance Requirements
Some states’ laws determine the kinds of insurance policies a business needs; you should anticipate these policies being required everywhere in Ohio, from Cincinnati to Cleveland.
Workers' compensation insurance - Ohio's workers' compensation system differs from other states. Ohio law requires all businesses with employees to take out compensation insurance policies purchased from a state agency.
This policy covers wages for employee work-related injuries and illnesses. It additionally provides disability benefits for injured Ohio workers. Workers' compensation purchased from the state-run fund does not comprise employer's liability protection, which may help pay for lawsuits related to employee injuries in Ohio. Employers can purchase liability protection out of pocket as temporary means.
Commercial auto insurance - All company-owned vehicles designed to transport individuals in Ohio must be covered by business auto insurance. This insurance policy covers accident costs when used for business purposes.
Ohio's minimum requirements for auto liability insurance are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Trucking companies may need additional coverage to satisfy regulations. If an employer wants their employees to operate privately owned cars to support their work tasks, commercial non-owned auto insurance (CNOA), non-owned auto insurance (NONA), or both may be required. A business owner's policy (BOP) is another possibility.
Cost of Business Insurance in Ohio
The average cost for a Small Business Owner's Policy in 2021 was $3,135, totaling approximately $260 a month. Depending on the organization you run, the price of your insurance may vary. Typical premiums begin around a few hundred to several thousand dollars. However, riskier companies spend more on insurance.
These factors can influence your price:
- Business operation size
- Number of employees
- Coverage needs
Get a Quote for Ohio Business Insurance
If you need a premium for your Ohio business, please visit us at InsuranceAdvisor.com. Choose your state, then choose from General Liability, Commercial Property, Business Auto, and Workers’ Compensation insurance to 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 Ohio?
We are licensed to provide insurance in Ohio and can provide quotes with different insurance carriers. You can request quotes for your business 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 quotes for other lines of insurance, get a certificate of insurance, and update your information.
Frequently Asked Questions (FAQ) about Ohio Insurance
1. How much is business insurance in Ohio?
It depends on what type of insurance and what limits are covered. Small businesses in Ohio may spend anywhere from $45 to $1,000 per month and up on their insurance coverage. This may include General Liability, Workers’ Compensation, Business Property, or Business Auto. The amount of money you'll have to pay for commercial insurance in Ohio is dependent on the following variables:
Your industry - Companies considered higher risk would spend more on insurance for some lines of coverage than companies in lower-risk industries. Just because a business’s client may face higher exposure to property damage and a higher General Liability premium doesn’t mean the business will pay more for Property or Workers’ Compensation.
The amount of coverage you purchase - When you select a single kind of insurance or purchase just the minimum limits, you will pay less than if you bought higher limits. Your deductible also matters, as your out-of-pocket expenses may be more significant if an incident occurs.
The payroll for your business - The more workers and payroll your business has, the more you'll spend on workers' compensation insurance. Maintaining accurate records about your employees' payroll, positions, and job duties will assist when requesting a Workers’ Compensation insurance quote.
2. Where can I get inexpensive business insurance in Ohio?
The old saying, “You get what you pay for,” is very accurate with business insurance. If you want more incidents to be covered, you will pay more for insurance. The cheapest insurance is never the best insurance. Get more than one quote from the same or different agents so 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.
3. What types of business insurance are required for businesses in Ohio?
Ohio only requires Workers’ Compensation, but other types of business insurance should be considered. These may be purchased in a stand-alone policy or combined on a commercial package policy. Recommended insurance for businesses in Ohio are:
- General Liability Insurance
- Business Property Insurance
- Workers Compensation Insurance
- Cyber Insurance
- Commercial Auto Insurance
- Professional Liability
4. Which insurance companies are best in Ohio?
An Ohio-licensed commercial insurance agent will determine the best insurance company for your business. Insurance companies often specialize in specific business industries. Your independent insurance agent knows which carriers fit your company's needs. Visit us at InsuranceAdvisor.com to request a quote.
5. How to find out if a business has liability insurance in Ohio?
If you need to find out if a company your business works with has insurance, request a copy of their liability certificate. A certificate of insurance is a standardized form sent by a business’s insurance agent to clients or other companies to show evidence of General Liability, Workers’ Compensation, Auto Liability, and Umbrella coverage. This form will provide the policy number, the insurance company, and the limits for each type of coverage. If still in doubt, you may call the insurance agent listed on the form to verify the certificate’s coverage listed.
6. What is the cost of essential business liability insurance in Ohio?
In Ohio, the auto insurance rate averages $1,037 annually, 27.3% less than the rest of the country. Insurance for other types of coverage will vary depending on the variables listed in this article.