The state of Delaware is home to nearly 100,000 small businesses, which employ almost half of all workers in the state.1 The owners of these companies probably count on business insurance to protect their livelihoods.
Business insurance in Delaware is an essential part of operating a small company. It can help keep your business running when unexpected expenses arise after:
NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.*
Business insurance usually involves a package of different types of coverage, which insurance carriers call policies.
A business insurance package in Delaware may include some combination of:
One of the most frequently purchased types of business insurance is general liability coverage, sometimes called commercial general liability or business liability insurance. It can help pay for damages if someone other than an employee accuses your business of causing an injury or property damage.
For instance, a customer at a small cafe in Wilmington accuses a barista of spilling a scalding cup of coffee on their arm and seeks medical care. The business owner’s general liability coverage could help cover the customer’s medical expenses, as well as the cost to replace their stained blouse.
Cleaning and construction companies may also want to include tools and equipment coverage with their general liability policy. This optional add-on can help replace or repair essential work gear that’s stolen, lost or damaged.
Delaware law requires almost all businesses with employees to carry workers’ compensation coverage. When workers are hurt on the job, this form of insurance can help pay for medical care and physical rehabilitation and cover a portion of their lost wages during recovery.
Workers’ compensation coverage would apply in the following situation:
An employee of a carpentry firm in Bethany Beach is injured in a fall while repairing a deck at a vacation home. The business owner’s workers’ comp insurance could help cover the employee’s medical bills and pay a portion of lost wages if the worker needed time off to recuperate.
Did you know that personal auto policies won’t cover accidents that happen if you’re driving for business? That makes commercial auto coverage important if you or your employees drive for work purposes.
For example, the owner of a house cleaning company in Cambridge totals a company van, injuring himself and several other drivers. Commercial auto insurance could help cover the injured parties’ medical expenses and pay for vehicle damages.
If your business asks employees to drive their own vehicles for business or rent cars, there’s add-on coverage for such situations. It’s an optional and called hired and non-owned auto insurance.
Delaware commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.
For instance, a sprinkler malfunction at a Dover construction company damages the office, ruining a computer and printer. Commercial property coverage could help pay to clean up the mess and replace the damaged business equipment.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Many insurers don’t cover flooding or hurricane damage.
No matter how carefully you run your business, there’s always a chance that a client could blame you for a mistake that resulted in financial losses. If this happened, professional liability coverage, also called E&O or errors and omissions insurance, could benefit your business.
This type of business insurance coverage can help pay damages and legal defense fees if you’re accused of professional negligence, which could include missed deadlines or incomplete jobs.
For example, a client alleges that an event planner failed to secure a conference room and AV equipment for an event at the Rehoboth Beach Convention Center and demands reparations. The event planner’s professional liability insurance could help pay for damages to settle the claim, along with court costs and attorney bills if the client files a lawsuit.
Business insurance costs in Delaware are not one-size-fits-all. That’s because every small company has its own insurance needs based on its business operations, employment practices and other factors.
Here’s some of what insurance companies look at when determining how much you’ll pay for your coverage:
If you’re in an industry that’s more likely to experience injuries and accidents, you’ll probably pay more for your business insurance. For example, coverage for auto body repair shops often cost more than for graphic designers.
Business insurance will cost more as you add policies to your coverage package. However, you can sometimes bundle more than one policy and receive discounts. Most businesses need more than one type of policy to protect them in different situations.
Workers’ comp insurance pricing is based on your employee headcount. It’s important to have your exact full-time and part-time worker count when you request a quote today.
The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.
You can also use our insurance calculators for a general estimate of insurance costs in Delaware:
We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.
You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.
Learn more about insurance options in the states where you work.