What Are Common Small Business Insurance Requirements in Connecticut?
Business insurance provides financial protection in the event a claim is filed against your business.
Connecticut businesses with one or more employees are required to maintain workers' compensation insurance for their employees. Also, all business-owned vehicles must have commercial auto liability insurance.
Workers' compensation insurance pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. Your insurance company may also provide resources designed to assist your business in developing safe working habits to help control insurance costs.
Although not required by state law, here are other business insurance policies you may want to consider getting:
Provides protection for lost net income; mortgage, rent, and lease payments; loan payments; taxes; and employee payroll. Requires that the damages be caused by a covered loss resulting in physical damage to the property.
Businessowners policy (BOP):
A policy that combines property, liability, and business interruption coverages for small- to medium-sized businesses. Coverage is generally less expensive than if purchased through separate insurance policies.
Covers the cost to repair or replace vehicles (less depreciation) in the event of an accident, as well as the cost to rent a replacement auto so that your business can continue operating.
Protects your business's physical assets from perils such as fire, explosions, burst pipes, storms, theft, and vandalism.
Commercial general liability (CGL):
Insures against the liability exposures of many businesses. Coverage includes product liability, completed operations, premises and operations, and independent contractors.
Can provide liability protection for a data breach involving sensitive customer information, such as social security numbers, credit card numbers, account numbers, driver's license information, and health records.
Employment practices liability:
Liability coverage for wrongful termination, discrimination, and other violations of employees' legal rights.
Errors and omissions:
A professional liability policy protecting the policyholder against negligent acts and omissions that harm their clients.
Before deciding which policy is best for your business, be sure to contact a licensed business insurance broker or agent, who can provide more detailed information, help solicit quotes from insurers, and answer any questions you have.
An independent agent can help business owners understand which products can best meet their needs.