How do the nearly 635,000 small business owners in Maryland protect their employees and their livelihoods?1 Many of them rely on business insurance.
Having the right coverage for your Maryland business can give you the peace of mind to focus on building your small business. If things go wrong, business insurance can help cover unexpected expenses resulting from:
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.*
Continue reading to learn about important types of business insurance in Maryland. Or get a free instant quote to see customized coverage options for your business.
Most small businesses in Maryland need multiple types of insurance coverage, which insurance companies call policies. That’s why you can purchase customized packages built to meet your insurance needs.
Different types of policies protect your company in different kinds of situations. For example:
If a customer experiences an injury at your business location, says you’re responsible and comes after you for damages, you’d need a Maryland general liability policy. It could help you cover medical costs related to the injury, as well as legal bills if they sue you.
But, if one of your employees gets injured in the workplace, you’d need Maryland workers’ compensation insurance. It could help pay for the employee’s medical bills and lost wages while they recover.
Other kinds of coverage purchased by Maryland small businesses include professional liability insurance to protect against professional mistakes, commercial property insurance to help cover damage to business property and commercial auto insurance to help pay for accidents that happen when driving for business.
Costs resulting from claims of injury or property damage can add up fast. That’s why many Maryland small businesses purchase general liability insurance.
Also called commercial general liability, this type of coverage can help pay medical bills and to repair or replace items if a non-employee says your business caused bodily injury or property damage. It can also help cover legal fees if you are sued.
For instance, an employee of a Baltimore landscaping company damages a client’s retaining wall while working at a row house. General liability coverage could help the business pay to repair the wall and assist with costs if the homeowner filed a lawsuit.
Tools and equipment insurance is an optional general liability add-on for businesses in the construction and cleaning industries. It can help pay to replace and repair essential gear that’s stolen, damaged or lost outside of wear and tear.
The Old Line State requires most businesses with employees to carry Maryland workers’ compensation insurance. If staff members get hurt on the job, this kind of coverage can help pay for medical expenses, physical therapy and lost wages while they recover.
For example, an employee of a Columbia-based retail store falls off a ladder in the stock room and requires surgery for a broken wrist. Workers’ comp could help cover the staffer’s hospital bills, rehabilitation costs and part of their wages while they’re unable to work.
Businesses that own vehicles will need commercial auto insurance. That’s because personal auto policies won’t cover business-related accidents.
Commercial auto insurance would be important for a Maryland business in the following situation:
A general contractor based in Hagerstown has a fender bender in a company van while leaving a job site, smashing his vehicle and another. Commercial auto insurance could help pay to repair the auto damage. If anyone is hurt, coverage could also help cover medical costs.
Hired and non-owned auto coverage is an optional add-on to commercial auto. It can help cover accident damages If you ask employees to rent vehicles or drive their personal autos for business.
Maryland commercial property insurance, sometimes called business property insurance, can help pay for business property that’s damaged or destroyed after a covered event, such as water, fire or wind incidents.
For example, a kitchen fire at a Bethesda casual dining restaurant damages the cooking station. Commercial property coverage could help pay to repair the grill and replace equipment that was ruined.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Carriers often don’t cover flood and hurricane damage.
Maryland professional liability coverage, which is also known as E&O or errors and omissions insurance, can help small businesses in cases of alleged professional negligence.
If you’re accused of delivering poor work, missing deadlines or not completing work, professional liability can help you defend your company by assisting with court costs, lawyer fees and settlements.
For instance, a government client accuses a Silver Spring management consultant of giving bad advice, which leads to significant financial losses. Professional liability coverage could help the consultant settle out of court or mount a legal defense.
Business insurance costs in Maryland can vary greatly. This is because each small company has unique business insurance requirements determined by how they do business.
Here are some of the factors that will affect how much you’ll pay for your commercial insurance package:
Industry-related hazards affect how much your company will pay for coverage. For example, a construction company in Elkton, whose work involves the risk of injuries or property damage, will pay more for coverage than an office-based professional services worker in Chevy Chase.
As you add different types of coverage to your insurance package, the price you pay will increase. You will also pay more if you choose higher policy limits (which provide more protection) for your coverage, as opposed to the minimum policy requirements.
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.
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 Maryland:
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.