Business Insurance in Pennsylvania

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Pennsylvania business owners should look into business insurance for several financial and legal reasons. Customer injury, weather events, professional negligence are just a few of the many problems that may lead to costly legal proceedings and damages owed that may easily lead to bankruptcy if insurance isn't in place.

The Department of Labor in Pennsylvania published a report advising the number of workplace injuries occurring in 2021 was 161,592 with most of them happening with private employers. A worker getting sidelined for even a brief period can cause significant disruptions in a business's production capacity and affect profitability.

Pennsylvania law necessitates businesses with one or more full or part-time workers to become fully or partially covered by workers' compensation. Executive officers and domestic workers are usually exempted, but you should check with the state about the specific requirements for your business’s circumstances. While general liability and property insurance aren't legally mandated in Pennsylvania, you may require them before entering into a contract with a landlord or potential client.

Examples of professionals who need Business Insurance in Pennsylvania:

  • IT Technology
  • Construction and contractors
  • Health, Beauty, and Well-Being
  • Architecture and Engineering
  • Real Estate
  • Consulting
  • Marketing
  • Retail
  • Medical practitioners
  • Service providers

Insurance for Business owners in Pennsylvania

General Liability

Commercial General liability insurance (GL or CGL), also called business liability insurance, covers common business risks, including injuries to third parties and their property, and personal and advertising injury. Pennsylvania firms need a business liability insurance plan to protect against third-party liability incidents. Most commercial contracts between business entities will require that the vendor or service provider carry this coverage.

Professional Liability

Professional liability insurance, also called errors and omissions insurance, protects small businesses against the cost of customer lawsuits relating to professional negligence which causes a financial loss to others. Professional liability insurance is geared toward companies that provide services based on their skill sets. Accountants, realtors, architects, engineers and insurance agents fall into this category.

Even the most diligent and professional service provider or their employees will make mistakes. Unfortunately, the client may not be sympathetic if you're at fault for causing them to squander time and money. Professional liability insurance coverage safeguards you against clients filing lawsuits for negligence in performing your professional services.

Cyber Insurance

Cyber insurance, protects small businesses from the high costs of data breach, phishing, ransomware, or virus attacks. This policy will provide defense for your business if sued by clients or employees for negligence in preventing the attack and losing their data.  It will pay sums that your business is found to be legally liable for in court cases. Besides defense, this policy can pay for customer notification, credit monitoring, public relations, reputational harm, fraudulent funds transfer if included in your policy. Cyber can even pay some regulatory fines and PCI compliance penalties.

Cyberattacks and data breaches are not only growing in numbers but they are more expensive and time-consuming to recover from. Small businesses often have poor cybersecurity, making them a favorite for cybercriminals to target. Cyberattacks aren't just a nuisance-they can lead to your business failing. A statistical study found that 60% of small firms close within 6 months of a cyberattack. Cyber security insurance can help your business recover from financial expenses incurred from an attack.

Business Owner’s Policy

A BOP combines commercial property insurance and liability insurance into a single plan. It's the most cost-effective way to cover Pennsylvania businesses. If you have a workplace that you rent or own, you may well require a business owner's policy (BOP).

Many local businesses need general liability and commercial property insurance when renting office space. Even if you do not need coverage, a BOP is a good choice for businesses that are open to the public and own business property. This policy safeguards your business against the loss of income when your building is damaged by a covered peril and your business can’t operate normally.

Workers’ Compensation

Corporations, LLCs, and sole proprietors In PA need workers' compensation insurance to cover injuries suffered on the job. Workers' comp can also cover work-related health problems.

Regulations concerning workers' compensation vary by state. Still, smaller companies establish a workers' comp policy as soon as they hire their first employee (or a certain number of employees). Even if not required by law, this policy offers essential protection for employee injuries and the Employers Liability coverage included on workers compensation policies covers employee lawsuits alleging employer negligence.

If you do not have workers' compensation insurance, your business will be liable for any medical bills incurred by injured employees and their lost wages. Most all states impose heavy penalties for noncompliance with workers compensation laws.

Commercial Auto insurance

This policy is required in Pennsylvania for all vehicles. Commercial auto insurance covers legal liability for damages caused by a company vehicle. You can rely on commercial auto insurance for defense and paying court awarded damages when your driver was at fault and injures someone, damages property or another vehicle.

Pennsylvania Small Business Insurance Requirements

Pennsylvania requires employers to have worker's compensation insurance, regardless of whether employees work full-time or part-time. This provision ensures that all employees with work-related injuries are granted a fair opportunity to use:

  • Medical professionals
  • Diagnostics
  • Medication
  • Rehabilitation
  • Lost wages

All vehicles in Pennsylvania must be covered by auto insurance whether personal or commercial.  Any vehicle titled in the business name should be insured on a business auto policy

Cost of Business Insurance in Pennsylvania

A review of 28,000 small business owners discovered that the median cost of a general liability policy was $42 per month or $500 per year. But this number depends on many factors.

A Pennsylvania business insurance policy premium depends on several variables, including the organization's industry, revenue size, and location. For example, a business in the bustling city of Philadelphia will likely pay a different premium than a business in an unpopulated suburb of Erie.

The most significant cost issue for a business is its industry type. Tree trimmers work overhead with heavy equipment, while lawn maintenance specialists work on the ground. In this scenario, the tree trimmer is exposed to greater risk for injury and will have to pay a higher premium for workers compensation insurance coverage.

Get a Quote for Pennsylvania Business Insurance 

Visit us at InsuranceAdvisor.com to request a quote for your business!

Why Choose Insurance Advisor for Commercial Insurance in Pennsylvania?

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 Pennsylvania

1. How much is business insurance in Pennsylvania?

A review of 28,000 small business owners discovered that the median cost of a general liability policy was $42 per month or $500 per year. But this number depends on many factors. The average monthly or annual cost of a business owner's policy (BOP), which covers general liability insurance with business property coverage, was less than $53. Though many factors influence this cost, such as:

  • Type of business and its risks
  • Business operations and location
  • Number of employees
  • Types of insurance purchased
  • Policy limits and other coverage options

2. Where can I get inexpensive business insurance in Pennsylvania?

What good is insurance if it doesn’t cover what your exposures are? You can get cheap insurance but beware of the exclusions of coverage if you do. Get the right coverage for your business at an affordable cost but which covers the type of claims that are most likely to occur.

3. What types of business insurance is required for PA businesses?

Recommended insurance policies for small businesses in Pennsylvania are:

  • General Liability Insurance
  • Professional liability insurance
  • Cyber insurance
  • Business property insurance
  • Workers’ compensation insurance
  • Commercial auto insurance

4. Which insurance companies are best in Pennsylvania?

A 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 Pennsylvania?

Contact your insurance company to ask for a free copy of their public liability certificate, which will provide you with the insurer's policy number and any related documentation. Call the insurance provider and ask for confirmation of the insurance's validity using the number given on the certificate.

6. What is the cost of essential business liability insurance in Pennsylvania?

The cost of general liability insurance coverage varies. Very small businesses may pay somewhere between $1,000 and $2,000 per year. Large businesses may pay over $100,000 a year. It all depends on your business operations, revenue, location, and many other factors. Visit us at InsuranceAdvisor.com to request your quote.

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