Your company's location affects which policies you need
State laws determine whether your business needs workers' compensation and other policies. Learn the requirements for small businesses in your state and compare quotes online for free with TechInsurance.
Which small business insurance policies does your state require?
Most states require workers' compensation and commercial auto insurance
In most states, businesses must purchase workers’ compensation insurance as soon as they hire their first employee. For example, if a coffee shop hires a barista. In some states, general contractors and subcontractors (like electricians, handyman, and painters) in the construction industry must carry this coverage even if they have no employees.
Additionally, most states mandate commercial auto insurance for businesses that own a vehicle. For example, if you own a truck for your flooring installation, EMS, tree service, or HVAC business, then you'll likely need to obtain a commercial auto insurance policy.
A nurse, computer repair technician, occupational therapist, security guard, or caregiver who travels to meet clients would also need coverage beyond their personal auto policy, which only covers your commute.
Property value in your state determines business owner's policy costs
In states with high property values, you may need higher limits on commercial property insurance or a business owner’s policy (BOP) to cover potential damage. In areas where earthquakes, floods, or fires are likely, businesses may have difficulty getting insured or pay more for coverage.
Location plays a role in how much companies pay for insurance
A business centered in an area with higher crime rates or more foot traffic may pay more for policies that protect against theft and vandalism, such as commercial property insurance and BOPs. A cleaning business that parks its vans (e.g., janitor's van) in a high crime area while serving homes and businesses might pay more for commercial auto insurance as well.
Premiums might also be higher for general liability insurance, which protects against common customer lawsuits. In contrast, a company based in a less-populated or lower crime area may pay less for these policies.