Chances are, you didn’t choose to build your business just any old place. You carefully selected the state, city, and community where you laid down roots. Maybe the market opportunity was too good to pass up. Perhaps you saw the potential in an area’s peculiar charm and decided to see what happens.
You probably already appreciate that your location is part of what makes your small business unique. But you may not know that where you live also affects your insurance coverage.
That’s why we created this user-friendly guide: “Small Business Insurance by State.”
On each state’s page, you’ll discover hallmarks of your state’s business climate, insurance laws you must comply with, and hazards specific to your area.
How Does Your Location Affect Your Insurance?
Your small business insurance needs and premium rates can vary drastically depending on where you live. Here are a few location-based factors that impact your coverage:
- Property values. As a rule, the more valuable the property, the more you can expect to spend insuring it against loss or damage. That’s why commercial real estate in the heart ofNew York may be more expensive to insure than property in the outskirts of Illinois. But even within the same state, your Property Insurance rates may differ. For example, business property in Chicago, IL, may be worth more than property in downstate Carbondale, IL.
- Geographical risks. Your location comes ready-made with a slew of risks. For example, inFlorida, your business must be prepared for the possible destruction a hurricane can cause. That means you may have to add a hurricane endorsement to your Property Insurance policy. Meanwhile, in California, you might choose to add an earthquake rider to your plan. Businesses based in big cities may need a little extra General Liability Insurance coverage if they are open to the public in a high-traffic location. There’s simply more chances that a customer could waltz through the door, trip, break a leg, and sue for damages.
- States laws. Most states have some regulations in place that dictate the need for certain coverages. For instance, unless you’re based in Texas, your state laws probably require you to carry Workers’ Compensation Insurance to cover the cost of employee occupational injuries. (You can see how the cost of Workers' Comp changes by state on our page, "How Much Does Workers' Comp Insurance Cost?"). Your state might have insurance requirements for different industries, too. For example, doctors and lawyers may have to carry Malpractice Insurance, which covers lawsuits over professional errors.
If that seems like a lot of information to keep straight, don’t worry. Just check out our guide and click on your state’s link for a concise summary of its notable quirks.
Why You Should Work with an Insurance Agent Who “Gets” Your Area
Why make protecting your business more complicated than it ought to be? At insureon, we tend to think the process of getting tailored coverage should be a cakewalk for every small-business owner. That’s why our agents are trained by the industry and by the area. This allows us to…
- Explain your region’s risks.
- Walk you through any laws that affect your coverage needs.
- Find the most competitive insurance rates for your area.
- Shoot the breeze about your favorite teams (depending on your agent).
To get your quotes underway, fill out an online insurance application.