Navigating the complex landscape of small business insurance in New York can be daunting for entrepreneurs. With diverse options and regulatory requirements, securing the right coverage is crucial for protecting your business against unforeseen challenges.
This article provides a comprehensive guide to understanding the various insurance options available for small businesses in the Empire State. It highlights the cost of small business insurance in NY and offers essential tips from professional companies like NEXT to ensure your business remains safeguarded and compliant.
Whether you’re just starting out or reassessing your current policy, this resource will equip you with the knowledge to make informed insurance decisions tailored to your unique business needs.
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What Business Insurance Is Mandatory in New York?
State laws dictate business insurance requirements in New York, making certain policies mandatory throughout the state, from Rochester to New York City.
Workers’ Compensation Insurance
Workers’ compensation insurance is essential for all businesses with employees, whether full-time or part-time, in New York. It covers medical expenses for work-related injuries or illnesses, such as a cleaning company employee getting sick from fumes. Workers’ comp also provides disability benefits and shields business owners from liability related to workplace injuries.
Commercial Auto Insurance
Any vehicle owned by a business in New York must have commercial auto insurance. This policy covers accident-related costs involving business vehicles. The minimum requirements for auto liability insurance in New York are:
- Bodily injury coverage: $25,000 per individual
- Bodily injury coverage per accident: $50,000
- Death coverage per individual: $50,000
- Death coverage per accident: $100,000
- Property damage coverage per incident: $10,000
- Personal injury protection: $50,000
- Uninsured motorist coverage: $25,000 per person
- Uninsured motorist coverage per accident: $50,000
Trucking companies might require additional coverage to meet specific regulations. While not mandatory, it’s advisable for personal vehicles used for work to be insured under hired and non-owned auto insurance (HNOA) since personal auto policies typically exclude business use.Â
HNOA can be added to commercial general liability insurance or a business owner’s policy.
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Top 7 Companies for Small Business Insurance
NEXT offers a range of commercial insurance policies that you can easily purchase online and start using immediately. Their business owner’s policy combines general liability with commercial property insurance.Â
They also provide commercial auto insurance, workers’ compensation, professional liability insurance, and coverage for tools and equipment, among others.
NEXT, it simplifies policy management with digital tools that allow you to instantly share a live certificate of insurance and add additional insured parties at no extra cost. You can opt for monthly payments and enjoy a 25% discount.
Founded in 2016 and based in Palo Alto, California, NEXT Insurance uses artificial intelligence and machine learning to make the insurance buying process easier. AM Best gives them an A—(Excellent) financial strength rating, setting them apart from competitors. However, some rivals may offer specialized coverages like cyber liability insurance.
With NEXT, you can secure various business insurance coverages online in about ten minutes. If you prefer a personal touch, you can also speak with a U.S.-based insurance advisor.
Choosing NEXT in New York offers several advantages, including quick sharing of a live insurance certificate, the ability to customize your business insurance with a range of coverages, and a fully online quote and application process, with additional support available when needed.
>> Get Your Business Insured With NEXT! >>
Hiscox
Hiscox stands out as an excellent choice for freelancers, celebrated as the top insurer for independent contractors among small commercial insurers. They offer a flexible business owner’s policy (BOP) that covers various needs, such as business interruption, electronic data loss, and professional liability insurance.
For freelancers, Hiscox offers standalone professional and general liability policies perfect for short-term projects, with convenient monthly payment options.
Hiscox has an A (Excellent) rating from AM Best, reflecting strong financial health. Although they’ve had a higher-than-average volume of complaints in the past three years, the year-over-year decrease in complaints suggests improving customer satisfaction. Hiscox’s policies, including their BOPs, start at an affordable $500 per year.
In New York, Hiscox excels by offering tailored options for independent contractors, no-fee monthly payments, short-term liability insurance, and a fully online quote and application process, all supported by readily available assistance.
>> Get Your Business Insured With Hiscox! >>
Simply Business Insurance
Simply Business makes it easy to compare quotes and coverage options from leading insurance providers like Hiscox, helping you find the best fit for your needs. You can review policy options online in less than ten minutes. If you need extra help or have questions, licensed agents are just a phone call away.
This service is especially useful for businesses and individual proprietors, offering customized insurance recommendations based on your profession, whether landscaping, accounting, or photography.Â
While Simply Business doesn’t handle claims directly (that’s up to your chosen provider), it provides plenty of support, from retrieving new copies of your policy documents to helping you connect with your provider for any needed assistance.
Key benefits of using Simply Business in New York include a quick quote process, access to licensed agents for guidance, and options from top insurance providers.
>> Get Insured With Simply Business Insurance! >>
Tivly
Tivly simplifies obtaining business insurance through a comprehensive online platform where you can quickly input your criteria and receive a quote tailored to your business needs. Partnering with over 200 providers, including major players like Progressive and The Hartford, Tivly ensures you’re matched with the insurance provider that best safeguards your financial interests.
With Tivly, you can access various types of business insurance, such as business income insurance and liability coverage, to protect your life’s work.
The advantages of using Tivly in New York include a straightforward quote process, a vast network of over 200 partner providers, and the confidence of being matched with a provider that aligns with your specific business insurance requirements.
>> Get Your Business Insured With Tivly! >>
CoverWallet
Shopping for business insurance can be daunting and time-consuming, but CoverWallet simplifies the process by providing easy access to quotes from multiple insurers. You can start by chatting with an insurance advisor or directly getting quotes from renowned companies like Hiscox and Progressive.
CoverWallet offers a range of coverage options, including workers’ compensation, general liability, and commercial property insurance, allowing you to customize protection for every aspect of your business.
After choosing your insurance, you can manage your policies via MyCoverWallet, an online dashboard that lets you issue insurance certificates, file claims, and handle premium payments. This ensures your policies are organized and easily accessible. You can always reach out to an expert for advice.
CoverWallet also provides extensive educational resources tailored to various industries. These resources help you identify the recommended coverage based on your industry, location, workforce size, and annual revenue, simplifying the process of finding the right insurance for your business.
Key benefits of using CoverWallet in New York include the ease of obtaining multiple quotes, learning about industry-specific insurance recommendations, and access to a comprehensive range of insurance types.
>> Get Your Business Insured With CoverWallet! >>
Progressive Business Insurance
Progressive is renowned as a dependable car insurance provider and is an excellent choice for businesses with commercial fleets. Trucking companies operating tractor-trailers and long-haul semi-trucks will particularly benefit from Progressive’s extensive coverage.
Businesses with at least three years of operation can enjoy up to 5% savings on premiums. You can secure a 15% discount on your commercial auto policy if you pay the full premium upfront.
Beyond vehicle insurance, Progressive offers a range of additional business insurance options. These include cyber insurance, professional liability, business owner policies, workers’ compensation, and general liability insurance. They also provide “any auto coverage,” ensuring protection for vehicles owned and operated for business purposes by you or your team.
The benefits of choosing Progressive in New York include flexible coverage options tailored to your specific business needs and potential additional perks such as risk management services.
>> Get Insured With Progressive Business Insurance! >>
The Hartford Business Insurance
Hartford brings extensive expertise in business insurance. It focuses on crafting policies that precisely align with each client’s unique requirements, resulting in cost savings. The company caters to a wide range of clients, from large corporations and mid-sized businesses to sole proprietors, offering diverse policies.Â
Their offerings include event insurance, employment practices liability, directors and officers insurance, bonding and surety, flood insurance, coverage for loss of business income, restaurant insurance, workers’ compensation, and technology errors and omissions, among others.
Opting for The Hartford in New York means benefiting from the company’s over 200 years of experience in the insurance industry. The company simplifies the process with online quote generation, maintains a strong financial rating, and provides a broad selection of commercial insurance products.
>> Get Your Business Insured With Hartford! >>
Types of Business Insurance Coverage Available in New York
New York Business Owner’s Policy
A Business Owners’ Policy (BOP) combines business property and liability insurance into a single unified policy. This coverage supports New York businesses and their workforce against various claims, such as:
- Bodily injury
- Property damage
- Theft
You can tailor your BOP to suit the specific requirements of your business by incorporating additional policies like:
- Data breach insurance
- Professional liability insurance
- Workers’ compensation insurance
A BOP is particularly advisable if your business possesses:
- A physical premises in New York, whether it’s a retail store, home office, conventional office, or leased area
- The likelihood of facing customer lawsuits due to injuries incurred at your business location
- Valuable digital assets, equipment, money, or furnishings are at risk of being lost, damaged, or stolen
New York Commercial Property Insurance
Securing your assets is paramount if you run a business in New York. This is where commercial property insurance steps in, providing a safety net for:
- Your equipment
- Inventory
- Office decor
- Personal belongings
Imagine a fire wreaking havoc in your workspace, destroying your products or gear. This coverage not only aids in repairs or replacements but also covers losses from theft or misplacement of office equipment. Policies can be tailored to fit your needs, safeguarding valuable papers or records.
General Liability Insurance in NY
Also known as business liability insurance, general liability insurance in New York protects your venture from various claims, such as:
- Reputational damage
- Property damage
- Bodily injury
- Advertising errors
So, if your advertisement misfires or someone gets hurt on your premises, this insurance covers potential liabilities.
New York Business Income Insurance
If a mishap like fire, theft, or storm forces your business to close temporarily, business income insurance helps recover the lost revenue during downtime. You might consider this coverage essential if:
- Your business operates out of a physical location, whether owned or rented
- You run a retail store
- Your revenue depends heavily on software or digital assets
- Your business uses machinery or tools to produce goods or provide services
We offer business income insurance as part of our Business Owners’ Policy (BOP). However, you can also purchase it separately.
Errors and Omissions Insurance in New York
Also known as professional liability insurance, errors and omissions coverage is vital for safeguarding your business against claims such as:
- Negligence
- Misrepresentation
- Giving incorrect advice
- Failing to deliver professional services or making errors in providing them
- Libel or slander
- Not securing personally identifiable information
Without this insurance, you could face hefty legal defense costs alone.
Cost of Small Business Insurance in NY
As a small business owner, understanding your insurance expenses is crucial. Here’s a breakdown of the average costs for small business insurance in New York:
- General liability: $41 monthly
- Workers’ compensation: $37 monthly
- Professional liability/Errors and Omissions: $70 monthly
These figures apply to businesses in New York City and across the state. Factors influencing these costs include:
- The nature of your industry and associated risks
- The scope of your business operations
- The number of employees
- The limits of your policy and the deductibles
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Frequently Asked Questions – Small Business Insurance New York
Can a Data Breach Make My Company Liable?
Yes, which highlights the importance of cyber insurance. Small businesses are particularly vulnerable to hackers, who are three times more likely to target them due to their limited defensive resources.
In New York, data breach laws mandate that businesses notify affected residents about security breaches, which can become costly. Cyber liability insurance mitigates these costs by covering notification expenses, legal fees, and potential fines.
Does the Industry I Operate in Influence the Insurance Requirements Set by the State?
Indeed, your industry can dictate specific state mandates concerning business insurance and bonds. For example, contractors typically need general liability insurance or surety bonds to undertake certain projects, in line with state licensing regulations.Â
Similarly, real estate professionals, including agents and brokers, often require errors and omissions insurance to secure a license. While state law may not compel physicians to have professional liability insurance, many New York healthcare facilities require such coverage.Â
Cannabis businesses aren’t mandated to have specific insurance to operate legally, but they’re advised to obtain coverage to safeguard their operations. Local city and county regulations, in addition to state laws, may also apply.
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Bottom Line – Small Business Insurance New York
Small business insurance in New York is a vital safeguard for businesses, protecting against various risks and uncertainties inherent in today’s economic landscape. Whether it’s liability coverage, property damage, or workers’ compensation, the right insurance policy provides peace of mind and a solid foundation for growth and stability.
New York small business owners are encouraged to carefully assess their needs and seek tailored insurance solutions to ensure their enterprise thrives in the competitive market.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.