Get the right commercial insurance for your Indianapolis business
Which policies are recommended for Indianapolis businesses?
Indianapolis is often ranked one of the best cities for starting and running a business. Here are the top policies you'll need to protect your Indianapolis small business.
General liability insurance
A general liability policy protects Indianapolis businesses from lawsuits related to customer accidents, defamation, and copyright infringement. Commercial leases often require this coverage.
- Customer injuries at your business
- Damage to a customer's property
- Libel and other advertising injuries
Professional liability insurance
This policy covers the cost of lawsuits related to mistakes and oversights, such as a recommendation made by a consultant that causes a client to lose money. 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 costs related to data breaches and cyberattacks. Every Indianapolis 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 commercial property insurance together at a discount. It's the policy most often recommended for small businesses in Indianapolis.
- Customer injuries
- Damaged business property
- Business interruption insurance
Workers’ compensation insurance
Workers’ compensation insurance is required in Indianapolis for businesses that have employees. It can cover medical costs for work-related injuries.
- Employee medical expenses
- Disability benefits
- Lawsuits over employee injuries
Commercial auto insurance
All vehicles owned by Indianapolis businesses must be covered by a commercial auto policy. 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 Indianapolis carry this 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, such as inventory, computers, and furniture. 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
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Which business insurance policies are required in Indianapolis, IN?
Workers' compensation insurance
Indiana requires all workers to be covered by workers' compensation insurance. According to Indiana state law, there are a few exceptions to this rule, including agriculture workers, firefighters, railroad employees, and independent contractors.
Self-employed business owners and small businesses with only one employee can insure themselves with a workers' comp policy if they choose to, but it's not required.
Workers' compensation coverage helps pay for medical costs and legal fees if an employee is injured while on the job. Personal health insurance will not cover work-related injuries.
In Indiana, failure to provide workers' comp for eligible employees could result in a fine of up to $10,000 and temporary closure until a certificate of insurance is obtained.
Commercial auto insurance
All small businesses with company-owned vehicles in Indiana must carry commercial auto insurance coverage in case of accidents or collisions while performing work duties.
The minimum auto liability coverage Indianapolis small businesses must carry:
- $25,000 bodily injury liability for each person
- $50,000 bodily injury liability for each accident
- $25,000 property damage liability for each accident
Professional trucking companies may be required to carry additional coverage.
If you or your employees plan on using personal vehicles for business purposes, they will not be covered under a commercial auto insurance policy. For that, you will need a hired and non-owned auto insurance policy.
How much does business insurance in Indianapolis cost?
Small businesses in Indianapolis don't have to pay a lot for commercial insurance. Here are a few average costs for Indiana businesses, based on policy data from Insureon customers:
General liability: $47 per month
Workers' comp: $62 per month
Professional liability/E&O: $70 per month
The cost of business liability insurance depends on factors such as:
- Type of business
- Business operations
- Number of employees
- Policy limits and deductibles
- Claims history
Top professions we insure
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FAQs about Indianapolis business insurance
How do I get a certificate of insurance for my business?
Getting a certificate of insurance is fast and easy. With Insureon, you can often get an insurance policy the same day:
- Fill out an easy online application to compare quotes between top-rated providers.
- Pick the policy that suits your needs and submit your payment.
- Download a copy of your certificate of insurance (COI) by logging into your account.
Our licensed insurance agents are ready to help you find the best insurance for your Indianapolis small business, factoring in things like your industry, risks, and budget. Most small business owners receive their certificate of insurance within a few hours.
Can my business be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Small businesses are a common target of cyberattacks since they often have fewer security measures in place.
In Indianapolis, small business owners are required to notify the Attorney General and affected Indiana residents within 45 days if their data has been compromised. Failing to do so can carry fines of up to $150,000.
If your small business plans on keeping any customer records or performing online sales transactions, such as through a POS system, you may be at risk for a data breach or cyberattack.
Personal information includes a name or Social Security number combined with:
- A driver's license or state ID number
- A credit card number
- An account number or financial account number
- A debit card with the corresponding PIN code
Notifying customers that their information has been leaked can be time-consuming and expensive. Cyber insurance will help protect your business and cover the costs of alerting your customers in the event that their data is compromised.
Does my industry affect Indianapolis insurance requirements?
Indiana typically requires workers' compensation insurance and commercial auto insurance for most business owners. However, there are additional business requirements and regulations based on industry and type.
Here are a few examples of businesses that require specific insurance types:
- Notaries need to have a notary bond certificate of at least $25,000 to operate in Indianapolis.
- Contractors are often required to carry commercial general liability insurance for contractors or surety bonds to secure contracts, such as with the State of Indiana.
- Physicians in Indianapolis must carry professional liability insurance coverage, also referred to as medical malpractice, to participate in the state's liability protection programs [PDF].
Other industries may not have Indiana business insurance requirements, but they might need to obtain insurance for their licenses, contracts, or real estate companies.
When running a business in Indianapolis, you need to be aware of laws and regulations for Indiana, the city of Indianapolis, and Marion County.
How can I get help starting a small business in Indianapolis, IN?
With over 2.6 million residents, the Indianapolis metropolis area is a fantastic place to start a small business. Indianapolis features some of the biggest insurance, healthcare, and manufacturing companies in the country.
If you're interested in obtaining information about opening a business, securing funding, or finding support for your small business in Indianapolis, here are some resources to get you started:
- SCORE Indianapolis is a nonprofit that connects business owners with mentorship, workshops, professional services resources, and more.
- The Indiana Small Business Development Center is a free resource for Indiana small business owners, with an office in Indianapolis. They provide online and in-person trainings, assistance with starting and growing a business, and other industry-specific programs.
- The Office of Minority and Women Business Development (OMWBD) provides free services for businesses owned by veterans, minorities, women, people with disabilities, and other Indiana workers who require extra support in securing resources for their small businesses.
- Indiana Small Business Development Center (ISBDC) helps small businesses apply for permits, obtain funding, and connect with resources. They have centers all over Indiana, including Indianapolis, Fort Wayne, and Evansville.
- The U.S. Small Business Administration is a popular, reputable source for small business loans.
How can I save money on Indianapolis business insurance?
Indianapolis small business owners can save money on insurance policies by starting an easy online application. Our licensed agents will help you get free business insurance quotes from top-rated insurance companies.
To maximize your small business insurance savings:
- Shop around and compare quotes for the best options for your exact business needs.
- Ensure your staff are adequately trained to avoid workplace accidents in order to prevent premiums from increasing.
- Bundle different policies that you need to maximize savings through discounts.
- Make sure your business has proper accessibility and fair hiring practices in place to prevent discrimination lawsuits.
Learn more about finding cheap business insurance coverage.