As an owner of a small business in Virginia, you should be aware of the various types of commercial insurance available to protect against a broad range of incidents, including business property damage, professional errors, and worker injury. Such episodes can be extremely expensive and hard to recover from on your own.
Running a successful business takes time and effort, and insurance is necessary to protect your investment. Insurance helps safeguard your business by paying out for damages caused by incidents such as:
- Personal injury claims
- Employees who get hurt at work
- Accusations of property damage
- Allegations of work mistakes
- Work-related auto accidents
Virginia has more than 766,800 small businesses that collectively account for 99.5 percent of all businesses in the state, as reported by the Small Business Administration. These small businesses together employ nearly 1.6 million people and are required by law to provide workers' comp insurance whenever workers are injured as a direct result of conducting business operations.
Virginia law does not require that business vehicles have liability insurance; nevertheless, you must be able to prove that you have the necessary financial resources to pay ineligible claims if they occur. Insurance policies in Virginia can cover the financial responsibility of purchasing commercial auto insurance coverage, paying an uninsured automobile fee, or obtaining a surety bond.
Major insurance covered industries in Virginia include:
- Business consultants
- Personal trainers
- Janitorial and cleaning services
- Landscaping and gardening services
- Architecture & Engineering
- Commercial Maintenance
- Home Services
Types of Commercial Business Insurance Offered in Virginia
Small businesses based in Virginia generally purchase insurance coverage that includes the following insurance policies:
General Liability Insurance
This insurance is the most common policy for small and medium-sized businesses, and all companies in Virginia should carry it. It provides protection against bodily injury and property damage, as well as personal and advertising injury. It's also called Commercial General Liability (CGL) insurance. This is a generalized liability policy.
General liability insurance may be paired with property insurance in some business owner’s policies (BOP), but it can also be available as a standalone policy to different contractors.
As a contractor or small business owner, you'll require business liability insurance to protect your business. One single incident could take your business to court, which you may find yourself unable to handle. The best way to prevent this is to make sure you stay protected.
Some companies or clients may additionally require you to carry technical and general liability coverage before you can work for them.
Commercial Auto Insurance
The commercial auto policy in your commercial vehicle insurance will cover the cost of repairing or replacing the vehicle in the event of an accident, theft, or vandalism. Most personal auto insurance policies don't cover the business use of an automobile, meaning that the policy may not cover retrieval of equipment, tools, or other supplies.
Unlike personal automobile insurance, commercial auto coverage generally covers vehicles used for business purposes. Some examples of business activities that may call for this type of insurance include hauling goods, transporting personnel, or providing services to the general public.
Workers Compensation Insurance
Companies located in Virginia must have workers' comp insurance for independent contractors if they function as more than 2 people. Employee compensation insurance is designed to pay for work-related expenses pertaining to work-related injuries or illnesses.
Workers' comp insurance enables workers' health claims to be compensated promptly. The cost of treatment can steeply escalate due to the high medical bill.
Due to variations in state laws, small businesses are usually expected to have a workers' compensation policy when bringing in at least one new employee. Even without a legal mandate, this policy helps protect against office-related medical expenses and employee lawsuits related to workplace injuries, such as a slip and fall in the office, an injury from equipment or machinery, or an occupational illness.
Business Owners Policy
A BOP combines property and liability insurance into a single package. It’s a good choice for small to medium-sized businesses that rent or own commercial real estate, such as a storefront, warehouse, or office.
A business owner's policy has two primary coverages.
Liability - The insurance policies available on a BOP have the same coverage as various liability policies. These include protection against liability incurred on account of consumer injury, physical damage, advertising injury, and product-related liability.
A BOP does not cover your workers. You will, therefore, need a separate workers' comp policy.
Property - This coverage for small businesses protects commercial buildings, movable property of the company, and personal property. It may also include items related to debris removal, loss of profits, and pollution cleanup in the event of a covered loss.
Like other policies, a BOP policy has specific insurance exclusions that you should know. Policy endorsements might be available if you need protection for something that's not covered.
Professional Liability Insurance
Companies that provide professional services in Virginia can benefit from this protection. It protects against claims of professional negligence, both actual or alleged, and pays legal fees. It is also known as errors and omissions insurance (E&O).
Professional liability insurance will cover damages for claims alleging actual or alleged negligence that stem from giving professional advice, including giving bad advice, omitting a service, or not providing services, irrespective of the fact that a mistake was made. Expenses for damages and legal fees are covered up to the limits of your policy.
Many professional liability insurance policies follow an incidents-and-claims-based model, so insurance may only be provided to claims made during the insurance coverage period. A retroactive date may be added to provide protection for incidents before the policy's start.
Professional liability insurance covers services previously rendered and all future work. This protection applies both at home and abroad.
This approach protects company information from incidents such as cybersquatting and data breaches. It incorporates business and third-party coverage for investigative services, data recovery, and legal expenses. The policy requires the service companies that maintain or manage customer credit card data.
Incident response services, first-party losses (yours), and third-party losses (those that do not belong to you) can be fully covered by this insurance policy.
This coverage is also commonly known as cyber liability insurance or cyber-risk insurance.
Virginia Small Business Insurance Requirements
Virginia state law requires all businesses with more than two workers to carry workers' compensation insurance, providing several options for attaining such insurance. Many of the options include getting self-insured or having a commercial insurance provider.
You are not legally required to carry other types of insurance in Virginia, but there may be some benefits. A general liability policy or a BOP may pay for costs associated with workplace injuries and accidents. For instance, coverage is required before entering into a contract with a client or landlord.
Cost of Business Insurance in Virginia
Factors such as the coverage needs of your business, its size, and its location can all affect your Virginia business insurance rates. For example, businesses near the Virginia coast may pay a different rate than that inland.
The most important determinant is your profession. Businesses are constantly evaluated for the sector-specific accessibility they receive. Because high-risk specialists, such as roofers and contractors, require more special insurance coverage, it's generally a costly option.
Get a Quote For Virginia Business Insurance
Visit us at insuranceadvisor.com if you need a quote for your Virginia 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 Virginia?
At InsuranceAdvisor.com we are licensed to provide insurance in Virginia and many other states. We can provide quotes from different insurance carriers to compare your options. Request quotes for your business from the comfort of your home, office, car or anywhere. 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 Virginia
1. How much is business insurance in virginia?
The typical median cost of small business insurance plans in Virginia is $35 per month. The factors that impact the cost include:
- 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 Virginia?
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 Virginia?
Recommended Insurance policies for small businesses in Virginia are:
- General liability insurance
- Professional liability insurance
- Cyber liability insurance
- Business owners’ policy
- Workers’ Compensation Insurance
- Commercial auto insurance
4. Which insurance companies are best in Virginia?
Like our agents at Insurance Advisor, an experienced Virginia 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 Virginia 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 Virginia?
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 Virginia?
Business insurance costs in Virginia vary significantly from one insurer to the next. The average cost of business insurance in Virginia that a small business owner can expect to pay is between $300 and $5,000 per year.