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Pennsylvania Business Insurance

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Business insurance in Pennsylvania

Pennsylvania’s 1 million small businesses employ almost all of the state’s workforce1 and are key to driving the economy in the nation’s fifth most populous state.

Almost all of these companies and self-employed workers need custom business insurance packages to protect their investments and livelihoods.

The types of small business insurance you need in Pennsylvania depend on your company’s risks, which could include:

  • Injuries to you, other people or employees
  • Property damage
  • Accusations of professional mistakes
  • Work-related auto accidents

Next Insurance helps more than 1,000 types of small businesses and self-employed workers easily 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 small business insurance in Pennsylvania or start a free instant quote to review options for your business.

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How Next can help you with business insurance in Pennsylvania

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. 

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Business insurance coverage and requirements in Pennsylvania

The insurance coverage you need in Pennsylvania and the policy limits you should choose depend on factors such as:

  • Your industry
  • The number of people you employ
  • Risks your business regularly encounters 

Businesses in Pennsylvania usually purchase several types of business insurance as a package. Common coverage options include:

 

General Liability insurance 

General liability insurance is often the first type of coverage small businesses in Pennsylvania purchase because of the broad financial protection it offers for some of the most common accidents. 

General liability insurance will help pay for damages, including lawsuit costs, if someone accuses your business of physical injury or property damage. Paying a little extra each month for more coverage means that you’ll pay less out of pocket if something unexpected happens.

For example, an excavation company in Pittsburgh breaks ground on a new building and hits a water main, causing the construction site to flood and delaying the project. If the building owner asks the excavation company to pay for the property damage, general liability insurance would help cover the expenses. It would also help pay for legal costs if the client sued.

Construction and cleaning companies in Pennsylvania can also add tools and equipment insurance to their general liability policy to help pay for business gear that is damaged or stolen.

 

Professional Liability (E&O) insurance 

Professional liability insurance is also known as errors and omissions (E&O) coverage. It helps protect small businesses that are accused of professional mistakes, missed deadlines or incomplete work.

For instance, a self-employed event planner in Philadelphia accidentally sends guests the wrong address to a wedding reception, and the clients later file a lawsuit for professional negligence. Professional liability insurance helps the wedding planner cover legal costs up to their policy limits.

 

Workers’ Compensation insurance

Pennsylvania legally requires business with employees to purchase workers’ comp insurance

If an employee gets hurt on the job, this coverage benefits the company and the injured worker by helping to pay for medical bills, lost wages and some legal costs if the worker files a lawsuit.

For example, an employee of an Allentown-based welding company drops a piece of heavy equipment and breaks a foot, which requires a six-week recovery period. Workers’ compensation insurance helps the hurt worker pay for medical bills and recoup some wages during recovery.

If the employee files a negligence lawsuit against the welding firm, Pennsylvania workers’ compensation insurance would help the business cover legal costs, such as attorney fees, court costs and settlements.

 

Commercial Auto insurance

Businesses in Pennsylvania that own vehicles need commercial auto coverage as part of their business insurance package. Personal auto insurance usually won’t cover damages from work-related accidents.

For instance, an Erie-based handyman drives a company truck to a jobsite, and the brakes fail, causing an accident. First responders use an ambulance to take the employee to the hospital for a checkup.

Commercial auto insurance in Pennsylvania helps the business pay for the costs of the employee’s medical bills and lost wages. It also helps cover the costs to repair or replace damaged vehicles.

Hired and non-owned auto insurance can be added to your commercial auto insurance for additional protection if you sometimes ask employees to drive personal vehicles for work or if you rent vehicles. helps protect against accident damages in these situations.

How much does business insurance in Pennsylvania cost?

Business insurance in Pennsylvania costs owners across all industries we serve about $47 per month.

However, monthly costs could be lower or higher based on factors like:

Your industry. Insurance costs are influenced by your industry and associated risks. For example, construction companies in Pennsylvania pay $68 each month for business insurance packages. Beauty salons, which are considered less risky, pay about $17 per month.

Your coverage limits. It might seem like a good idea to choose the minimum required insurance limits to save on monthly costs. But if an accident happens, you might have to pay more out of pocket for damages.

The number of employees at your business. Most insurers will consider your company’s payroll when determining workers’ compensation coverage costs. Though Pennsylvania law exempts some industries from carrying workers’ comp insurance,2 we recommend this coverage for almost all businesses.

Start a quote with Next Insurance today to explore to see how much insurance will cost for your business in just a few minutes.

 

More resources for Pennsylvania small businesses and self-employed workers

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

Article sources: 

  1. Pennsylvania Small Business Development Centers
  2. Commonwealth of Pennsylvania