Did you know that small businesses make up nearly all Oregon companies and employ about 55 percent of the state’s workforce?1 That is a significant part of the Beaver State’s economy.
Oregon small businesses need the protection of business insurance. It can keep your business going when unexpected events occur, such as:
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 Oregon. Or get a free instant quote to see customized coverage options for your business.
Insurance companies offer coverage in customized packages that you can build around your business insurance needs. Based on your profession and employment practices, your coverage package may include different types of insurance to help in different kinds of situations.
For example, a Eugene landscaping company might need Oregon general liability insurance to help cover damages if it’s accused of injuring someone or destroying property, and commercial auto insurance to help pay for a potential accident in the company truck.
While a small accounting firm in Beaverton might purchase Oregon professional liability insurance to protect against claims of professional negligence that cause financial losses, and commercial property coverage to help pay for repair and damage to their business in case of fire, wind or water damage.
Both of these businesses will also likely need Oregon workers’ compensation insurance to help cover medical costs and lost wages when employees are injured on the job.
Oregon general liability coverage is one of the most important types of business insurance you can purchase. If someone claims that your actions caused injury or property damage, general liability insurance can help pay to settle the claim or help cover legal costs if you’re sued.
Here’s an example of when general liability policy would benefit a small business:
A homeowner in Portland says that a landscaping company accidentally damaged several downspouts during a job. The landscaper’s general liability insurance could help pay to repair the damages to the home.
Owners of cleaning and construction companies may want an optional general liability add-on called tools and equipment coverage. This type of insurance product can help pay to replace essential business gear that’s lost, stolen or damaged.
Keep in mind that many commercial landlords or clients will require small businesses to provide proof of general liability insurance before they’ll do business with you.
State law requires most businesses with employees to purchase Oregon workers’ compensation insurance. This type of coverage can help pay medical expenses and lost wages when employees suffer work-related injuries.
Here’s an example of how workers’ comp could protect both small business owners and their staff members:
An employee of a retail store in Bend sprains an ankle while cleaning the stock room, goes to urgent care and needs a few days to recover. Workers’ comp coverage could help pay for the employee’s medical bills and cover a portion of their wages while they’re unable to work.
If your business involves driving, you need Oregon commercial auto coverage. The main reason is that personal auto insurance won’t pay for accidents that happen when you’re behind the wheel for work purposes.
For instance, a Springfield-based plumber has an accident driving to a job site, sends another driver to the hospital and damages both vehicles. Commercial auto insurance could help the plumbing company cover the other motorist’s medical bills and pay to repair both vehicles.
Oregon businesses that ask employees to drive their own cars for work or rent vehicles will need hired and non-owned coverage. This optional add-on can provide coverage for vehicles not titled to your company.
Oregon 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 a water, fire or wind incident.
For example, a kitchen fire at an Orcas Island restaurant damages the cooking station. Commercial property coverage could help pay to repair the stove and replace cookware that was ruined.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. It’s common for insurance carriers not to cover flooding or hurricane damage.
Oregon professional liability insurance, also known as E&O or errors and omissions insurance, can help your small business if you’re accused of professional negligence. Even if you did nothing wrong, it can assist you in defending your business.
If someone claims that your company made a work mistake, provided incomplete work or missed a deadline that caused financial losses, E&O insurance can help pay to settle the claim or help cover lawyers’ fees and court costs if you’re sued.
For example, a client claims that a small architectural firm in Salem delivered inaccurate building plans and files a lawsuit for financial losses. Professional liability insurance could help the architects with settlements and legal costs, such as attorney bills, court costs and damages.
Business insurance costs in Oregon are not one-size-fits-all. That’s because every small company is different and has unique insurance requirements. For example, a professional services company will need different kinds of policies than a general contractor.
Here are some of the factors that will affect 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, auto body repair shops are places where bodily injury and property damage can happen. Their coverage often costs more than desk workers like real estate agents.
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.
The number of people you employ will also affect what you pay for your business insurance, especially if you’re purchasing an Oregon workers’ compensation policy. Be prepared to share your payroll costs and exact number of full-time and part-time employees when you get your insurance 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 Oregon:
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.