Virginia Business Insurance

The nearly 724,000 small business headquartered in Virginia employ almost all of the state’s workers.¹

Operating a successful small business requires a lot of hard work, and insurance is crucial to protect your investment. Insurance helps protect your company by paying for damages caused by incidents like:

• Personal injury claims
• Employees who get hurt at work
• Accusations of property damage
• Allegations of work mistakes
• Work-related auto accidents

Next Insurance helps more than 1,000 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 Virginia or start a free instant quote to review options for your business.

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. 

Start an instant quote today.

The types of business insurance you’ll need and your policy limits depend on several factors, such as:

• Risks that you regularly encounter
• Your industry
• How many people you employ

Small businesses headquartered in Virginia commonly purchase coverage that includes:

• General liability insurance to help pay for claims of injury or property damage, including related lawsuits.
• Professional liability insurance to help cover damages and lawsuit costs related to accusations of work mistakes, incomplete projects and missed deadlines. This is also known as errors and omissions (E&O) insurance.
• Workers’ compensation insurance to assist employees who are injured on the job by helping to pay for medical expenses and lost wages.
• Commercial auto insurance to help pay for damages from work-related accidents.

General Liability insurance 

We recommend general liability insurance in Virginia for almost all small businesses. This coverage helps protect your company if someone says that you caused injury or property damage.

For instance, a building owner in Norfolk accuses a welding company of not properly fixing a steel column during renovations, which causes structural damage and requires expensive repairs.

General liability insurance in Virginia helps the welders pay to repair the damage. If the owner sues, this policy would also help cover court costs, legal fees and any damages for which the welding company is held responsible.

Owners of construction and cleaning businesses in Virginia should strongly consider adding tools and equipment coverage to their insurance bundle. This general liability upgrade helps pay to replace or fix valuable business property that is stolen, damaged or lost.

Professional Liability (E&O) insurance 

Small business owners might sometimes face allegations of poor or incomplete work that causes a client financial losses, even if the accusations are unfounded.

Professional liability insurance, which is also known as errors and omissions (E&O) coverage, helps protect against these types of claims.

For example, a high-profile government agency claims that an Arlington-based accounting firm made a major tax error, resulting in lost revenue and negative publicity. Professional liability insurance helps the accounting firm cover damages, including legal costs, up to the policy’s limits.

Workers’ Compensation insurance

Virginia business insurance requirements include workers’ compensation coverage for companies that regularly employ two or more people, either full-time or part-time.² The state’s workers’ comp law includes employees who are hired as subcontractors.

Virginia workers’ comp insurance would provide coverage in the following situation:

A summer employee at a Richmond-based landscaping company needs medical care for heat exhaustion and has to take three days off to recover. Workers’ compensation helps the business pay for the employee’s medical bills and lost wages.

Commercial Auto insurance

Commercial auto insurance is usually an essential form or coverage for Virginia-based companies that own vehicles, since personal car insurance probably won’t help pay for accidents that happen at work.

The Virginia Department of Motor Vehicles requires that all drivers, including businesses, carry a minimum of $50,000 in auto insurance.³ Although the state allows uninsured citizens to drive for a $500 annual fee, that cost doesn’t include insurance and won’t help cover damages if you have an accident.

Here’s an example of how commercial auto insurance would benefit a business:

An airport shuttle driver at a small bed and breakfast in Virginia Beach has a minor accident on the Hampton Roads Beltway. Commercial auto insurance helps the business pay for damages to its own car and other vehicles, along with any medical expenses.

Small businesses might sometimes ask employees to drive their own vehicles for work or use rental cars. In such cases, a commercial auto coverage upgrade known as hired and non-owned auto insurance will help cover accident damages and legal costs.

How much does business insurance in Virginia cost?

Next Insurance puts the current median monthly price of small business insurance packages in Virginia at $35 per month.

That figure includes major industries we serve, but your company’s specific costs will vary based on:

Risk factors your company routinely encounters. Construction workers are exposed to more injury risks than employees in other industries, and these businesses spend a median of $43 each month for insurance packages. By contrast, beauty salon operators in Virginia pay about $17 per month.

The types of insurance you buy and your policy limits. Choosing the minimum amount of insurance coverage and policy limits will save you money in the short term, but if an accident happens, you’ll probably end up paying more out of pocket.

How many people you employ. The more people you employ, the more you will pay for workers’ comp coverage. Knowing your company’s exact number of employees will simplify the process of getting an insurance quote.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

More resources for Virginia small businesses and self-employed workers

• Virginia Small Business Development Centers
• Commonwealth of Virginia’s State Corporation Commission’s insurance webpage

 Sources: 

1. U.S. Small Business Association 
2. Virginia Workers’ Compensation Commission 
3. Virginia Department of Motor Vehicles