Get the right commercial insurance for your Little Rock business
Which insurance policies are recommended for Little Rock businesses?
In Little Rock, small businesses are the backbone of the economy. Protect your small Little Rock business with these common insurance products.
General liability insurance
A general liability policy protects Little Rock businesses from lawsuits related to customer accidents, defamation, and copyright infringement. Commercial leases often require this coverage.
- Customer accidents at your business
- Libel and other advertising injuries
- Product liability insurance
Professional liability insurance
This policy covers legal costs related to mistakes and oversights, such as a consultant's advice that leads to financial loss. It's also called errors and omissions insurance (E&O).
- Mistakes that cause financial loss
- Accusations of professional negligence
- Missed deadlines
Cyber insurance
Cyber liability insurance covers the costs of data breaches and cyberattacks. Every Little Rock business that handles credit cards or other personal information should carry this coverage.
- Customer notification costs
- Fraud monitoring services
- Data breach investigations
Business owner’s policy
A BOP bundles general liability coverage and business property insurance together at a discount. It's the policy most often recommended for small businesses in Little Rock.
- Customer injuries
- Damaged business property
- Business interruption coverage
Workers’ compensation insurance
Little Rock businesses with three or more employees must carry workers' comp. It also covers work-related medical bills for sole proprietors, which personal health insurance may not cover.
- Medical bills from employee injuries
- Disability benefits
- Workplace injury lawsuits
Commercial auto insurance
All vehicles owned by Little Rock businesses must be covered by commercial auto insurance. This policy covers auto accident injuries and property damage.
- Medical bills from an accident
- Property damage caused by your vehicle
- Auto accident lawsuits
Errors and omissions insurance
Consultants and professional services in Little Rock carry E&O coverage to protect against legal costs from clients harmed by your advice or services. It's sometimes called professional liability insurance.
- Errors and oversights
- Late or incomplete work
- Negligence accusations
Commercial property insurance
This policy covers the cost of repair or replacement of your building's physical structure and its contents. Bundle it with general liability coverage in a BOP for a discount.
- Storm damage
- Fires
- Theft and vandalism
Commercial umbrella insurance
An umbrella policy provides coverage once the limit is reached on your underlying general liability insurance, commercial auto insurance, or employer's liability insurance.
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
Which business insurance policies are required in Little Rock?
State and local laws can determine the type of insurance you need. These policies help you comply with Arkansas business insurance requirements, as well as protect your business operations.
Workers' compensation insurance
Arkansas state law requires all businesses with three or more employees to carry workers’ compensation insurance. This includes full-time and part-time employees.
Construction companies and other high-risk businesses must provide workers' comp for their workers, regardless of the number of employees.
In the state of Arkansas, employers are not allowed to charge their employees for their own coverage.
Workers' comp pays for medical expenses from job-related injuries and illnesses, such as a cleaning company employee becoming ill from cleaner fumes. It also provides disability benefits to injured Arkansas workers.
Commercial auto insurance
Arkansas small businesses, from Fayetteville to Hot Springs, are required by state law to carry commercial auto insurance for all vehicles that are owned by a business. This auto policy pays for medical costs, legal fees, and property damage after an auto accident.
Little Rock businesses must meet the state's requirements for auto liability coverage, which are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Keep in mind that this is the minimum you're required to carry. It's worth considering higher limits, given the potential cost of a lawsuit. Trucking companies also may need more coverage to comply with regulations.
While not required, personal injury protection (PIP) coverage is recommended for businesses to help cover additional expenses, such as medical expenses, in the event of an accident.
If you need business insurance coverage for a personal, rented, or leased vehicle, you may want to consider hired and non-owned auto insurance (HNOA) instead.
How much does business liability insurance cost in Little Rock?
Small businesses in Little Rock don't have to pay a lot for commercial insurance. Here are a few average costs for Arkansas businesses:
General liability: $42 per month
Workers' comp: $56 per month
Professional liability/E&O: $83 per month
Business insurance costs depend on factors such as:
- Type of business
- Business revenue
- Number of employees
- Policy limits and deductibles
- Risk exposure
- Claims history
FAQs about Little Rock business insurance
Review answers to frequently asked questions about Little Rock insurance.
How do I get a certificate of insurance for my business?
Sometimes you need to get insured quickly to sign a contract or other agreement. With Insureon, you can get same-day insurance in three easy steps:
- Fill out our easy online application to get business insurance quotes from top-rated insurance companies.
- Choose the insurance option that suits your coverage needs and pay for it online.
- Download a certificate of insurance by logging into your account.
Our licensed insurance agents will help you get the right coverage for your small business insurance needs. Most businesses receive their certificate of insurance within a few hours of applying for quotes.
Can my business be held liable for a data security breach?
Your business could be held responsible for a data breach, which is why cyber insurance is so important. Small businesses are a common target of cyberattacks, since they often have fewer security measures in place than larger businesses.
Arkansas data breach laws require Little Rock businesses to notify any residents whose personal information is exposed in a data breach within 45 days.
Your business could also end up paying for a data breach investigation, a PR campaign, and other costs related to a breach or cyberattack.
Cyber insurance covers these costs and provides resources so you can get back to business fast.
Does my industry affect Little Rock insurance requirements?
Yes, you may have special requirements for business insurance and bonds, depending on the type of work you do.
The city of Little Rock requires all businesses to obtain a business license before operating.
Here are a few examples of businesses with additional obligations:
- Contractors aren't required in Little Rock to carry insurance, but they often need commercial general liability insurance or a surety bond to sign a contract or bid on a project. Having the right insurance and bonds helps you comply with state licensing requirements.
- Notaries public must carry a four year, $5,000 notary bond.
- Home inspectors in Arkansas must carry general liability coverage with a $100,000 limit.
- Physicians in Little Rock aren't required to carry malpractice insurance, but hospitals may require it.
- Cannabis businesses in Arkansas aren't required to carry cannabis insurance to operate legally. However, cultivators are required to have proof of assets or a surety bond.
When running a business in Little Rock, you need to be aware of laws and regulations for not only the city and state, but your industry as well.
How can I get help starting a small business in Little Rock?
Little Rock was recently ranked the 12th best city for doing business in the United States.
To help you get started opening or growing your Little Rock business, here's a list of local organizations that offer guidance and resources:
- Little Rock Regional Chamber provides training and coaching sessions for small business owners.
- University of Arkansas at Little Rock offers support for small businesses through tech support, counseling services, and training events.
- SCORE Little Rock provides free business advice and training, with support from experienced entrepreneurs from diverse industries and specialties.
- Little Rock Business Portal assists small businesses with starting and growing a business through different workshops and training resources.
- BUILD Academy is a 12-week workshop that provides essential training for Little Rock entrepreneurs and aspiring small business owners.
- Small Business Administration Arkansas assists small businesses with counseling, funding, certifications, and disaster relief support.
Keep in mind that many lenders will require you to first obtain several types of business insurance, which is yet another reason to insure your investment.
How can I save money on Little Rock business insurance?
Small business owners can save money on insurance by comparing quotes from different insurance agencies. With Insureon, you can get free quotes from top-rated providers by filling out one easy application.
There are a few other ways to save, such as:
- Bundle policies for a discount. The most popular option is a business owner's policy.
- Choose less expensive policy options, such as lower limits or a higher deductible.
- Focus on workplace safety. Fewer accidents means fewer claims, which helps keep your premium low.
Learn more about how to find cheap business insurance.
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