Exploring Your Business Insurance Needs in Northern Carolina

As home to many small businesses, North Carolina is a state that attracts many entrepreneurs. One of the first things to think about when launching a startup in NC is your business insurance needs. Here’s a business insurance guide that highlights what you need to know about proper coverage in this state.

Types of North Carolina Business Insurance Offered

Two of the most common types of NC business insurance to consider are liability insurance and a business owner’s policy (BOP) insurance package. While liability coverage takes care of legal claims against your company, BOP offers broad coverage for common claims. Many firms in the state combine these two types of coverage in one policy.

From there, they customize add-on coverage for their specific operation, such as flood or earthquake insurance. This coverage usually isn’t included in a basic plan, even in areas with a history of such natural disasters. Don’t assume that whatever basic plan you sign up for covers everything you need. Be aware that there are many different types of business insurance coverage, such as plans specialized for certain industries.

If your business is heavily dependent on computers, consider getting cyber insurance. These days even the largest corporations can get hacked, so you need to be prepared for a cybersecurity breach. When you have cyber insurance in place, it can pay for replacing hardware and software damaged by hackers.

Liability Insurance in North Carolina

There are plenty of reasons why you need to get a sufficient amount of liability insurance that protects you from financially draining lawsuits. While every business is unique, you need to consider various worst-case scenarios in which accidents might happen on your site and cause injury to someone. Anyone can slip on a wet surface, for example, and end up in the hospital.

Even if you run your business as carefully as possible, there are still countless unpredictable ways in which people can sue you. For example, a customer might sue your company for bumping into a misplaced pole, or a competitor might sue your firm for reputational damage or trademark infringement. Having liability insurance in place reduces the odds of an entity collapsing your firm overnight with one major lawsuit.

Another reason why someone might sue your company is if it somehow damages their property. When someone makes a claim for medical bills or replacing valuable items, your business liability insurance will cover it up to the limits you set in your policy.

Workers’ Compensation Insurance

Workers’ compensation is required in states across America to protect the workers if they are injured or get ill on the job. The insurance covers various types of at-work injuries if they are reported on time. Employees can get ill or injured at work in numerous ways, depending on the industry. A factory, for example, has a more dangerous work environment than an office.

You have to review the dangers that go along with your business and consider the different ways workers can encounter accidents on the job. The higher risk your operation presents to workers, the more you’ll likely pay for coverage. Even an office job might lead to illness if it’s located in an area exposed to toxic chemicals.

Maintaining a healthy workforce is an essential part of running a successful business. It’s better to pay for productivity than sick leave. That’s why it’s important to ensure that your workplace is safe and free of hazards. You can also get better deals on workers’ comp if you figure out how to lower the risks in your workplace.

Business Owner’s Policy

Getting a BOP policy can be useful in various ways, especially if you own or lease a storefront. So if a vandal breaks in and steals or damages some of your inventory, the coverage will pay for replacing the items. In some cases, depending on the insurer, this policy can be used to protect digital assets. BOP can also be used to cover lawsuits.

North Carolina Minimum Business Insurance Requirements

While each state has its own minimum business insurance requirements, North Carolina mandates all firms with three or more employees to secure workers’ comp or be self-insured. The consequences of not meeting minimum business insurance requirements in the state can range from a misdemeanor to a felony with imprisonment.

Another concern is whether your company hires subcontractors, which is common with construction companies. You need to ensure that either the subcontractors are self-insured or you provide workers’ comp coverage for them. This situation needs to be spelled out clearly in the contract to avoid confusion if an injury occurs at the worksite. Many construction companies will not hire subcontractors unless they have their own insurance.

Meeting state requirements for business insurance doesn’t have to be a stressful ordeal. The key is to discuss your business model with an insurer and learn about the various options available to you. Your insurance provider will ask questions about your operation to uncover any risks that should be backed by coverage. Part of business success can be attributed to risk management, in which different types of insurance play a major role.

Understanding your business insurance needs in NC can be complicated, which is why you need to work with the experts. Contact us at Pittman Insurance Group, LLC to learn more about how we can provide your business with the coverage it needs.

Call Us