Delaware Business Insurance

Although more than two-thirds of Fortune 500 companies in the U.S. are headquartered in Delaware¹, its nearly 85,000 small businesses account for almost all employers based in the state.²

Business insurance in Delaware is a key to starting and operating a successful small company. Coverage bundles help protect against unexpected events that could include:

• Injuring another person or destroying their property
• Workers getting hurt on the job
• Professional errors that cause another company or person to lose money
• Damages from automobile accidents in business-owned vehicles

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Delaware or start a free instant quote to review options for your business.

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions.

Start an instant quote today.

Depending on your company’s particular circumstances, you’ll likely need to carry some or all of the following types of coverage:

• General liability insurance, to help cover damages if someone who doesn’t work for you says that your company’s actions caused injury or destroyed property.
• Workers’ compensation insurance, a type of protection that helps employees deal with business-related injuries by covering medical bills and reimbursing some lost wages.
• Professional liability insurance, which helps cover accusations of professional negligence that cause a client to lose money.
• Commercial auto insurance, a form of coverage that helps pay for accident damages in vehicles titled to a company.

General Liability insurance

We recommend that most business insurance packages in Delaware include general liability coverage to protect against claims of causing injury or damaging property.

General liability insurance helps pay for these types of accusations, along with court costs, attorney fees and additional damages if someone sues your business. Many commercial landlords will ask for proof of general liability coverage before they’ll agree to rent your business office space.

Here’s how general liability insurance might help protect a small business in Delaware:

A visitor at a building site in Wilmington is injured by a falling item and blames the construction company for negligence. The business owner’s general liability insurance helps pay for the person’s medical bills and would also cover some lawsuit costs up to the policy limits.

Construction and cleaning firms can purchase a type of business insurance in Delaware called tools and equipment coverage. If business items are damaged, lost or stolen, this general liability addition helps cover replacement or repair costs.

Workers’ Compensation insurance

Delaware law requires all businesses with employees to carry workers’ compensation coverage.³ This form of insurance helps employees who get hurt on the job pay for all medical bills and any necessary physical rehabilitation.

In Delaware, employees who are completely disabled are entitled to two-thirds of weekly lost  wages if they can’t work for more than seven days. An injured employee who can work only part-time or must take a pay cut can collect two-thirds of pre-injury weekly wages under workers’ comp insurance in the state.⁴

Workers’ compensation coverage would apply in the following situation:

An employee of a carpentry firm in Rehoboth Beach is injured after falling while repairing a deck at a vacation home. The business owner’s workers’ comp insurance helps cover the employee’s medical bills and a portion of lost wages depending on the nature of the injury.

Professional Liability insurance

No matter how carefully you run your business, there’s always a chance that a client could blame you for a mistake that results in financial losses.

Professionally liability insurance helps business owners cope with these difficult situations. Also called errors and omissions (E&O) coverage, this form of business insurance in Delaware helps pay for accusations of work oversights, which could include missed deadlines and incomplete jobs.

For example, a client says that a Dover-based IT consultant improperly configured a computer network, which causes a week-long delay in business activity and lost revenue. Professional liability insurance helps the consultant reimburse the client for financial losses and pay to fix the problems. 

If the client filed a lawsuit for additional damages, E&O insurance would help the consultant pay for lawyer fees, court costs and any other expenses for which it was found at fault.

Commercial Auto insurance

All drivers in Delaware must purchase auto insurance that covers injuries to other drivers, personal injuries and property damage. The state’s minimum coverage amounts for accident damages range between $50,000 for injuries to $10,000 for destroying property.⁵

Personal auto insurance typically won’t cover damages if someone who works for you has an accident in a company-owned vehicle. This is why small business insurance packages in Delaware frequently include commercial auto coverage.

For instance, three employees of an appliance repair firm in Newark have an accident in a company vehicle and are advised to seek emergency care. The employer’s commercial auto insurance would pay for up to $30,000 in medical bills under Delaware’s minimum personal injury coverage requirements.5 But you should think about carrying additional commercial auto insurance if you own multiple vehicles that employees often drive.

Hired and non-owned auto insurance is an add-on that helps cover accident damages in vehicles not titled to your business. This type of coverage could be necessary if your company occasionally asks employees to rent vehicles or drive their own cars for work.

Next clients pay a median of $49 per month for business insurance in Delaware across all industries we work with. Factors that will determine your company’s actual costs include:

Your industry and day-to-day risks. If your company routinely encounters hazards, you should budget extra for coverage. Business insurance in Delaware costs about $66 per month for construction firms, while owners of consulting companies pay a median of $38.

The types of insurance you buy and policy limits. While you might be tempted to purchase the minimum forms of business insurance in Delaware and lower policy limits to save money, you might incur more out-of-pocket costs if you ever need to file a claim.

How many workers you employ. Workers’ comp insurance costs are partially determined by the number of people on your payroll. Small business insurance in Delaware will cost more as your employee numbers grow; providing an accurate count will help make sure you get a correct quote.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

More resources for Delaware small businesses and self-employed workers

Check out these links if you would like to learn more about starting a business in Delaware:

• Delaware Division of Small Business
• Delaware Small Business Chamber
• Delaware Department of Insurance

Article sources: 

1. Delaware Division Of Corporations
2. U.S. Small Business Administration
3. Delaware Division of Industrial Affairs
4. Delaware Division of Industrial Affairs
5. Delaware Department of Insurance