Are you starting a small business in Pennsylvania? Securing top-notch business insurance is essential to keeping your venture strong and steady. Numerous options are available in the Keystone State, covering industries from retail to tech startups.
A tailored policy can protect your enterprise from unexpected losses due to accidents, natural disasters, or legal issues. Curious about the best options? We’ve curated a list of the seven top companies providing solid insurance for small businesses in Pennsylvania.
For example, NEXT is a crowd favorite for creating coverage that addresses your business’s needs. Explore this guide to find the insurance provider that fits your budget and business vibe, safeguarding your business against unforeseen challenges.
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Business Insurance Obligations in Pennsylvania
In Pennsylvania, state regulations mandate certain types of insurance for small businesses, though not all coverage is required. Different industries have unique insurance needs, which can vary locally within the state.
Workers’ Compensation
Workers’ compensation insurance is mandatory for businesses in almost every state, including Pennsylvania. However, the rules on who qualifies and when it must be provided can vary. Pennsylvania requires this insurance for all seasonal, part-time, or full-time workers as long as there’s at least one employee.
This requirement applies to businesses whose employment agreements start in Pennsylvania, even if an injury occurs out of state. This is true even if the workers’ comp laws of the other state wouldn’t normally apply.
Pennsylvania employers must also post a notice displaying contact details for workers’ compensation claims. This includes the responsible party’s name, address, and phone number, along with instructions on how employees can obtain more information. Non-compliance or failure to post this notice can result in fines from the Pennsylvania Bureau of Workers’ Compensation.
Workers’ comp is crucial as it supports employees who suffer work-related injuries or illnesses. It helps with wage replacement during recovery, covers medical expenses, and supports programs to assist them in returning to work. In Pennsylvania, it also typically provides liability protection for employers.
Commercial Auto
In Pennsylvania, commercial auto insurance is mandatory, though the coverage limits are relatively low. The required coverages for vehicles include:
- Bodily injury: $15,000 per person and $30,000 per accident as the maximum limit
- Property damage: $5,000 per accident
- No-fault medical payment coverage: $5,000
This medical payment coverage is similar to the Personal Injury Protection (PIP) in other states. It covers medical costs and compensation for lost wages and household services.
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Top 7 Companies for Small Business Insurance
NEXT
NEXT Insurance provides various business insurance products, including general liability, commercial property, commercial auto, workers’ compensation, professional liability, and tools & equipment coverage. These products can be activated immediately online or with personalized assistance from a U.S.-based advisor.
NEXT Insurance stands out with its advanced digital tools for policy management. These tools allow for the easy sharing of live certificates and the addition of insured parties at no additional cost. Clients can choose monthly payments and save up to 25% on premiums.
Founded in 2016 in Palo Alto, California, NEXT Insurance boasts an A- (Excellent) financial strength rating from AM Best. The company leverages artificial intelligence and machine learning to streamline the insurance procurement, offering rapid and efficient coverage for over 1,300 business types.
In Pennsylvania, NEXT Insurance is popular for its tailored, affordable policies, streamlined online processes, and flexible coverage options, making it an ideal choice for small businesses and entrepreneurs.
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Hiscox
Hiscox is a top choice for freelancer insurance among small commercial insurers. It offers customizable policies that include a business owner’s policy (BOP) covering business interruption, electronic data loss, and professional liability.
Freelancers can choose standalone professional or general liability insurance tailored to short-term projects. Hiscox also offers monthly payment plans to help freelancers manage cash flow more effectively.
Although the company has faced a higher volume of complaints in the past three years, it continues to improve customer satisfaction, backed by its A (Excellent) rating from AM Best for financial strength. Hiscox provides easy access to insurance quotes and claims filing online or by phone with a 24/7 online claims service.
Founded in 1901 and based in Atlanta, Hiscox USA is part of the larger Hiscox Group, which employs over 3,000 people globally. The company’s BOPs start at around $500 annually, demonstrating its commitment to small businesses through tailored policies and user-friendly online interfaces. This makes Hiscox a dependable and efficient choice for business insurance, especially recommended in Pennsylvania.
Hiscox’s dedication to robust coverage options and convenient service underscores its reputation as a reliable insurer for freelancers and small businesses.
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Simply Business Insurance
Simply Business simplifies the process of comparing quotes and coverage from top providers like Hiscox Insurance Company, helping you find the best fit for your needs. You can explore policy options online in less than 10 minutes, and their licensed agents are available by phone for extra help or questions.
Ideal for businesses and sole proprietors, Simply Business offers customized insurance recommendations tailored to your specific industry, whether landscaping, accounting, or photography.
While Simply Business doesn’t handle claims directly, managed by the provider you select, they’re available to assist with any issues, such as obtaining new copies of your policy documents or connecting you with your insurance provider for further assistance.
Simply Business is an excellent choice for business insurance in Pennsylvania, thanks to its wide range of customizable insurance products, user-friendly online services, and comprehensive understanding of small business needs.
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Tivly
Tivly provides a streamlined online platform for exploring various business insurance policies. Enter your details on their website for a quote tailored to your business needs. Partnering with over 200 insurance providers, including well-known names like Progressive and The Hartford, Tivly ensures you find the provider that best suits your requirements, particularly for protecting your financial interests.
At Tivly, you can obtain essential coverage options such as business income insurance and liability coverage, which are crucial for safeguarding your enterprise.
Tivly is an excellent choice for business insurance in Pennsylvania. It stands out for its local expertise, a wide range of customized insurance products, personalized customer service, and efficient policy management process. These features make Tivly a trusted and convenient option for Pennsylvania businesses seeking comprehensive coverage.
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CoverWallet
Finding business insurance can often be time-consuming, requiring significant effort to gather and evaluate quotes and coverage options. CoverWallet, however, simplifies this process by providing easy access to quotes from top insurers like Hiscox and Progressive.
At CoverWallet, you can consult with an insurance advisor or obtain quotes directly. They offer various coverage options, including workers’ compensation, general liability, and commercial property insurance, ensuring comprehensive protection for all aspects of your business.
Once you’ve selected your coverage, you can manage your policies through MyCoverWallet. This online dashboard allows you to issue insurance certificates, file claims, and pay premiums, keeping your policies organized and easily accessible.
CoverWallet also provides extensive educational resources, offering coverage recommendations tailored to different industries and deeper insights based on industry type, location, number of employees, and annual revenue
CoverWallet stands out as an excellent choice for business insurance in Pennsylvania, thanks to its user-friendly platform for comparing insurance quotes, personalized advisory services, and a broad range of insurance products that facilitate efficient and effective business insurance management.
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Progressive Business Insurance
Progressive Business Insurance is well-regarded as a reliable car insurance provider, making it an excellent choice for businesses with commercial fleets. Due to Progressive’s extensive coverage options, it’s particularly advantageous for trucking companies operating tractor-trailers and long-haul semi-trucks.
Businesses operational for at least three years can enjoy up to a 5% discount on premiums. Paying your commercial auto policy in full upfront can lead to a 15% discount.
Progressive offers more than just commercial vehicle insurance; they provide cyber insurance, business owner policies, professional liability, workers’ compensation, and general liability insurance. Their “any auto coverage” includes any vehicles owned and used by you or your employees for business purposes.
Progressive Business Insurance is highly recommended for businesses in Pennsylvania because of its wide range of coverage options that are suitable for various business sizes and types.
Their flexible policies allow business owners to customize coverage to fit their specific needs, including liability, property, and vehicle insurance. Progressive is also noted for its competitive pricing and discounts, especially when bundling different types of insurance.
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The Hartford Business Insurance
Founded in 1810 and based in Hartford, Connecticut, The Hartford stands out as a top choice for workers’ compensation insurance in the US, especially for small businesses. This company offers a wide array of insurance solutions to meet the diverse needs of businesses, from large corporations to sole proprietors.
Their portfolio includes event insurance, directors and officers liability, business income loss, employment practices liability, flood insurance, bonding and surety, restaurant insurance, and technology errors and omissions, among other plans.
Hartford enhances its offerings with a robust network of medical professionals and data-driven tools to aid in the quick recovery of injured workers. It also features a pay-as-you-go billing system that calculates payments based on actual payroll, helping to prevent overpayments.
Its deep industry knowledge and commitment to balancing coverage with cost-effectiveness make it a top choice. In Pennsylvania, The Hartford is celebrated for its extensive coverage options that cater to businesses’ diverse needs.
It’s recognized for exceptional customer service and reliability and offers key solutions such as workers’ compensation, property insurance, and liability coverage are crucial for businesses in the state.
With a longstanding industry reputation and proficient claim handling, The Hartford is a trusted partner for business owners seeking comprehensive protection and assurance.
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Additional Insurance Options for Small Businesses in Pennsylvania
Although Pennsylvania mandates only workers’ compensation and commercial auto insurance, these requirements don’t provide complete protection. Additional insurance tailored to your specific business operations may be essential.
Professional Liability
Beyond the essential general liability, professional liability insurance, also known as Errors & Omissions (E&O), is crucial for service-oriented industries. For instance, if you run a financial planning or architecture firm in Pennsylvania, E&O insurance is vital. It protects against negligence claims related to advice or contract fulfillment, covering areas that general liability does not.
General Liability
Commercial general liability insurance, commonly known as general liability, offers broad protection against third-party claims for your business. Although not mandatory throughout Pennsylvania, certain industries must have this insurance to obtain state licensure.
Local governments may impose specific requirements. For example:
- Daycares must have general liability insurance with a minimum limit of $1 million per occurrence and $3 million total
- Electricians in Pittsburgh and Philadelphia must have policies with minimum limits of $300,000 and $500,000, respectively
- HVAC technicians must provide proof of insurance that covers personal injury and property damage, with a minimum of $50,000 for each
General contractors and painters also face specific insurance requirements, though the exact amounts for painters are yet to be detailed.
Besides legal requirements, having general liability insurance is crucial when bidding on projects, renting spaces, or participating in events across Pennsylvania. Typically, proof of coverage through a certificate of insurance is needed.
General liability insurance primarily covers:
- Bodily injury
- Property damage
- Personal and advertising injury
It often includes additional protections such as product liability, which covers damages from goods manufactured or distributed by your business, and premises damage for rented business locations.
Commercial Property Insurance
This insurance extends beyond liability to protect your business’s physical assets. Whether you own a building, lease office space, or store inventory in a warehouse, commercial property insurance is essential. It may also cover tools and equipment, although some items might require a separate inland marine policy.
Policies are often “all risk,” covering all losses except those explicitly excluded. Alternatively, some are based on a named-peril approach, restricting coverage to specific incidents occurring at designated locations.
Business Owners Policy (BOP)
Ideal for small enterprises in Pennsylvania, a Business Owner’s Policy (BOP) combines general liability and commercial property insurance, often at a reduced rate due to bundling. This policy provides comprehensive protection in one package, typically well-suited for businesses generating less than $5 million in revenue or those with under 100 employees.
Inland Marine Insurance
Inland marine insurance is crucial for industries reliant on tools or equipment, as it covers items outside of a fixed location. This insurance is perfect for mobile businesses such as painters or contractors, providing protection for tools while they’re in transit or “on the go.”
Commercial Umbrella Insurance
For businesses exposed to high liability risks, commercial umbrella insurance offers an additional layer of security. It activates when the limits of primary liability coverage are exceeded, providing extra protection against large claims.
Cyber Liability Insurance
In the digital era, cyber liability insurance is essential for addressing both first and third-party risks related to data breaches. This coverage helps manage the consequences of a breach, such as customer lawsuits and regulatory fines.
Employment Practices Liability Insurance (EPLI)
EPLI protects against claims arising from employment practices, such as wrongful termination or discrimination. In today’s legal environment, this type of protection is crucial for any business.
Each of these insurance types offers specialized protection tailored to specific business risks, making them valuable considerations beyond the required coverages in Pennsylvania.
Costs of Business Insurance in Pennsylvania
If you’re steering a small business in Pennsylvania, brace yourself for the intricacies of insurance costs. Premiums aren’t arbitrary; they depend on your industry, business size, and claims history. We’ve gathered quotes from various brokers and carriers, revealing some interesting figures for businesses with up to three employees and annual earnings under $250K.
Here’s the breakdown by industry:
- Handypersons: These professionals face higher premiums, ranging from $2,766 to $3,878 annually. They often choose a Business Owners Policy (BOP) that provides $1 million coverage per incident and $2 million, with $30,000 for property damage and a $1,000 deductible.
- Photographers: They have lower premiums, between $310 and $409 annually. Their preferred choice is general liability, offering the same generous coverage limits.
- Restaurateurs: Expect premiums ranging from $3,925 to $6,897 annually. Like handypersons, they typically select a BOP with extensive coverage.
- Landscapers: Their premiums range from $2,184 to $2,675 for general liability, maintaining consistent coverage limits similar to other industries.
Insurers consider several factors when determining your premium:
- Your location in Pennsylvania, including the county
- Your annual revenue and payroll size
- Your claims history
- Your risk management practices and staff training
- Your business experience
- Your previous insurance records
Insurance is more than just a requirement. It’s a crucial element of your business strategy. Choosing the right policy can help ensure smoother operations and protection against unforeseen events.
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How to Obtain Business Insurance in Pennsylvania?
Exploring small business insurance options in Pennsylvania can lead you down various paths, each tailored to different needs. Here are three primary routes to consider:
Provider
Firstly, you could go directly to the insurance provider, also known as a carrier. Some carriers distribute their policies only through agents or brokers, while others sell directly to customers and may even offer online quote generation. Opting for direct-to-consumer routes could save you money by eliminating agent or broker commissions.
Agent
NEXT, you have the option of working with an agent. An agent acts as an intermediary between the insurance company and potential policyholders. There are “captive agents,” who represent only one insurance company, and “independent agents,” who work with multiple insurers. For example, State Farm primarily uses captive agents, whereas Liberty Mutual typically engages with independent agents.
Broker
Choosing a broker also suits your preferences. Brokers represent you rather than the insurance company. They typically collaborate with multiple carriers and guide to help you secure the best insurance deal possible.
For instance, Simply Business is a broker that connects with several top-rated carriers, focusing on finding the ideal Pennsylvania business insurance for your specific needs.
Whether you decide to go direct, work with an agent, or engage a broker, Pennsylvania offers various avenues to ensure your business is well-protected. Choose the route that best suits your needs and preferences!
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The Importance of Insurance for Pennsylvania Small Businesses: Statistics and Insights
Pennsylvania stands out for its size and population. It ranks as the fifth most populous state and boasts the sixth-largest economy in the U.S., primarily fueled by small businesses.
Here are some compelling statistics about Pennsylvania’s small businesses:
- The state hosts 1.1 million small businesses, making up 99.6% of all businesses
- These enterprises employ 2.6 million people, 46.2% of the state’s workforce
- Notably, 88.2% of the state’s exports come from 13,134 small businesses
- In 2022, these small firms exported goods valued at an impressive $10.7 billion
- Most of these businesses are owner-operated, employing 872,647 people
- The leading sector is professional, scientific, and technical services, employing 125,179 workers
- The construction sector is also significant, supporting 95,099 workers
Small business insurance is crucial in Pennsylvania, playing a key role in maintaining this dynamic economic landscape. It helps manage business interruptions and supports injured workers by covering their wages, thus significantly bolstering the state’s financial health.
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Frequently Asked Questions – Small Business Insurance Pennsylvania
What Type of Insurance Is Mandatory in Pennsylvania?
In Pennsylvania, employers must carry workers’ compensation insurance for their employees. Additionally, businesses that own vehicles must have commercial auto insurance.
How Can I Submit a Complaint About Business Insurance in Pennsylvania?
To file a business insurance complaint in Pennsylvania, contact the Pennsylvania Department of Insurance. Complaints can be made online or by calling (877) 881-6388.
Is It Necessary to Have Workers’ Compensation Insurance in Pennsylvania?
Yes, Pennsylvania law mandates that all businesses with employees have workers’ compensation insurance, even if they have just one part-time worker.
Bottom Line – Small Business Insurance Pennsylvania
Pennsylvania, with its deep historical roots as one of the original colonies and a venue for constitutional conventions, now boasts the sixth-largest economy in the nation. Small businesses are the backbone of this economy, making business insurance essential.
Simply Business understands the importance of insurance and has streamlined the process of obtaining it online to be both straightforward and economical.
In just ten minutes, you can explore real-time quotes from leading insurers like NEXT, customize your coverages, and secure a policy online. Alternatively, you can call one of their expert agents for assistance.
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