Customized business insurance in Vermont
Vermont’s economy recently grew at a faster clip than the U.S. rate, and small businesses are major contributors to the state’s prosperity. The state’s small companies account for almost all businesses based in Vermont, employing more than 60% of its labor force.1
One thing these nearly 79,000 small businesses have in common is a need for insurance to help protect against incidents like:
- Accusations of causing injury or damaging property
- Claims of professional errors, incomplete work and missed deadlines that cause financial losses
- Workers who suffer job-related injuries
- Damages from accidents in company-owned automobiles
NEXT Insurance helps more than 1,300 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 Vermont or start a free instant quote to review options for your business.
Business insurance coverage and requirements in Vermont
Many NEXT customers based in the Green Mountain State carry insurance packages that often include:
- General liability insurance, which helps pay for accusations of injuring someone who doesn’t work for your business or damaging property. Proof of general liability insurance is also often required if you need to rent commercial office space.
- Professional liability insurance, which helps pay for financial losses if a client claims your company delivered unacceptable work, missed an important deadline or failed to complete a job.
- Workers’ compensation insurance, a mandatory type of business insurance in Vermont for companies with employees to pay for damages from job-related injuries.
- Commercial auto insurance, which helps cover expenses if there’s an accident in a company-owned vehicle.
Claims of injuring someone who doesn’t work for you or damaging another person’s property can have serious and expensive implications. Even if your business is not at fault for the accident in question, you could still be sued for financial damages.
This is why most small companies add general liability coverage to their business insurance packages in Vermont. General liability insurance helps pay for damages for causing injury or destroying property, including lawsuit expenses like attorney fees and court costs.
For instance, a member of a Burlington fitness center says that staff members’ actions caused an injury while they were assembling a weightlifting machine and dropped heavy components. General liability insurance helps pay for the customer’s medical and physical rehabilitation costs, as well as any additional damages for which the fitness center was found legally liable.
Your business insurance needs in Vermont might require a general liability upgrade called tools and equipment insurance if you own a cleaning or construction firm. This additional form of coverage helps pay to repair or replace essential business items that are damaged, lost or stolen.
Vermont law mandates that businesses with employees carry workers’ comp insurance to assist employees who get hurt on the job.2
Workers’ compensation coverage helps injured employees pay for medical expenses related to the injury. In Vermont, it pays for a portion of lost wages if someone is deemed disabled for more than three days, with benefits based on how many days the employee works each week.3
Here’s when you might expect an employee to file a workers’ comp claim:
An employee of a window cleaning business slips on an icy walkway while doing a job at a ski resort in Stowe, fractures a wrist and needs surgery. Workers’ comp insurance helps pay for the injured worker’s medical bills and covers some lost wages while they recover from the accident.
Automobile insurance is mandatory for all drivers in Vermont. Don’t expect your personal auto coverage to help pay for accident costs in a company vehicle, which is why small business bundles in Vermont frequently include commercial auto insurance.
The state requires drivers to purchase a minimum of $50,000 to pay for accident damages if there’s an injury and $25,000 for destroying property.4 However, the minimum coverage might not be enough to mitigate a business’s risks, so you should think about carrying a larger policy, especially if your company owns more than one vehicle and they are frequently on the road.
For example, the owner of a lawn care company based in Rutland has an accident in a company truck, and the other driver requires an ambulance and emergency room care. The business owner’s commercial auto insurance covers the injured motorist’s medical expenses as well as damages to the vehicle.
Again, whether the business would have to pay out-of-pocket costs depends on how much coverage it carries and the seriousness of the accident.
You might consider carrying hired and non-owned auto insurance to help pay for accident damages if employees sometimes drive their own vehicles for business purposes or get rentals.
Accusations of work errors, incomplete projects and missed deadlines can cause a small business plenty of headaches, along with expensive bills for financial damages.
Our clients often carry professional liability coverage as part of a business insurance package in Vermont. This type of coverage is also called errors and omissions (E&O) insurance and offers protection if someone blames your company for professional negligence that results in financial losses. E&O insurance helps pay for these unexpected expenses, including lawyer fees, court costs and financial damages if you’re hit with a lawsuit.
Professional liability coverage would help a small business deal with the following difficult situation:
An event planner in Montpelier accidentally mixes up the catering order for a wedding. The wrong food and beverages arrive, and the clients later threaten to sue. Professional liability insurance helps the event planner pay to settle with the clients.
How much does business insurance in Vermont cost?
Customers across all industries we serve in Vermont pay a median of about $43 each month to insure their businesses. Expect your company’s costs to vary based on costs like:
Work risks you face on a regular basis. Companies in higher-risk industries will pay more for business insurance in Vermont than those with less exposure to work hazards. For example, construction companies based in the state pay a median of $49 each month for protection, while retail store owners might need to budget only $25 only for coverage.
The coverage types and policy limits you choose. It’s true that your monthly insurance costs will be cheaper if you purchase only one or two types of protection and go with the lowest possible policy limits. However, you might actually pay more out of pocket if you ever had to resolve an expensive claim, canceling out any monthly savings.
Number of employees and planned hires. The more people you have on staff, the more you’ll spend for workers’ comp protection. Providing up-to-date employee numbers, including subcontractors and independent contractors, will help you get the most accurate cost estimate.
Start a quote with NEXT Insurance today to explore coverage options for your business in just a few minutes.
How NEXT can help you with business insurance in Vermont
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.
More resources for Vermont small businesses and self-employed workers
Check out these links if you would like to learn more about starting a business in Vermont:
Article sources:
1 U.S. Small Business Administration
2 State of Vermont Department of Labor
3 State of Vermont Department of Labor
4 Vermont General Assembly
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