Nebraska Business Insurance

Small businesses are the heart of Nebraska, making up 99% of all companies in the state. If you want to start or grow a company in the Cornhusker State, there are a few decisions you need to make.

Besides the obvious choices like a business name and company structure, you may need to choose a Nebraska business insurance policy.

Nebraska Business Insurance: The Basics

Unless you’ve bought or used a business insurance policy before, the concept can feel a bit strange. It makes sense to have health insurance if you break your arm, but how do you protect a business?

Nebraska business insurance could help you pay for damages or even lawsuits if your business is involved in an accident. While the business itself can’t break its arm, someone involved in it — like a customer — can. Different policies cover varying scenarios, but the general process of business insurance typically is:

1. You choose a policy that fits your needs and budget. You typically consider things such as the type of work you do and whether you have employees.
2. You pay a premium to maintain coverage. As you’ll learn in this article, some businesses need to have proof of insurance to operate legally in Nebraska.
3. If your business is involved in an accident, you file a claim.
4. Your policy might help you pay for damages and lawsuits. Even simple accidents can spiral into large medical bills or legal fees, so having a policy could potentially protect you from going into debt or having to file for bankruptcy.

Some of the other benefits of Nebraska business insurance that you may not have considered include:

• Standing out from competitors to make more sales
• Attracting and retaining the best employees
• Qualifying for a business loan

General liability insurance in Nebraska

If you want a Nebraska business insurance policy that could cover physical accidents like falls and client property damage, consider a general liability insurance policy.

General liability insurance in Nebraska typically covers:

• Third-party property damage, such as a client or vendor
• Personal and advertising injury
• Bodily injury
• Medical expenses
• Claims related to defective products
• And more

Incidents such as customer slip-and-fall accidents may seem minor, but the cost of business accidents can quickly escalate. Just check out some of these average claim amounts:

• $35,000 for product liability claims
• $30,000 for customer injury or damage
• $20,000 for a customer slip-and-fall

Getting general liability insurance in Nebraska could help you protect your business or personal finances if your business becomes involved in an injury or damage claim. Plus, you may need a policy to get a business license.

Requirements for general liability insurance in Nebraska can vary, but some occupations need to provide proof of insurance to operate legally. If you aren’t sure whether you need a license or insurance, begin your search on the Nebraska business licensing page.

Some examples of business types with requirements for general liability insurance in Nebraska include:

• Nail salons
• Hair salons
• Home-based child care facilities

We still recommend that many business owners consider general liability insurance, even if there’s no legal requirement to have it. Simply Business works with more than 80 types of businesses, because accidents can happen anywhere.

Here are a few scenarios where business owners might be able to use their general liability insurance in Nebraska to help cover the cost of accidents:

• A mortgage broker runs late to an appointment because of a big snowstorm the previous night. Being in a hurry, the broker forgot to shovel the steps leading into their office. When the broker’s first appointment arrives, the client slips on the stairs, falls, and breaks their leg.

If the broker had general liability insurance, their policy might cover the medical bills and attorney fees if the injured client sues the business.

• A landscaper is packing up after a job when the homeowner comes outside to admire their work. The client doesn’t notice the leaf blower on the ground and trips over it, falling down hard and getting hurt.

An uninsured landscaper would likely need to use their own money to pay for the client’s medical bills or to get a loan to cover the costs. If this scenario played out for an insured landscaper, the policy could help take care of resulting medical bills or claims.

• A home improvement contractor wraps up a bathroom remodel and heads home for the day. The next morning, they wake up to five voicemails from the angry homeowner. It turns out the contractor’s employee didn’t seal the tub properly, and the home has water damage in the room below the bathroom.

The homeowner sues the contractor for the damage and the cost and inconvenience of hiring someone to make the necessary repairs. With general liability insurance, though, the contractor’s policy could step in to cover the resulting charges and associated legal fees (up to the policy limits).

If you want to start a contracting business in Nebraska, check out our guide to getting licensed in the state.

Want to find out if general liability insurance could benefit your Nebraska business? You can speak one-on-one with a Simply Business licensed insurance agent at 855-563-0388. If you prefer to check out your options online, you can use our free quote tool to get customized quotes quickly.

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Nebraska professional liability insurance

Try as you might, you’re still likely to encounter an upset customer at least once. Hopefully, you can resolve the issue by talking to the customer about their concerns and offering a solution. If the customer believes your work caused them harm, though, they may sue you for negligence.

Alleged negligence could be as simple as a project manager making a small timeline mistake or a lawyer forgetting a single line in a contract.

If a client sues you for negligence, the best-case scenario is that you defend yourself in court and prove you aren’t at fault. Even so, you’re likely to accrue a pile of legal fees. If you are found at fault, you also could be liable to pay for any client damages.

So should business owners just cross their fingers, hoping that they never make a mistake or have a disgruntled client? No — you can be proactive and get a Nebraska professional liability insurance policy.

Professional liability insurance often covers:

• Legal defense costs
• Claims and damages
• Negligence or alleged negligence
• Copyright infringement
• And more

The choice about whether to get Nebraska professional liability insurance is often up to the business owner. Some occupations, like realtors, usually need to show proof of professional liability or errors and omissions coverage to operate legally. It’s worth noting that if insurance isn’t required in your industry, then having insurance coverage could help you stand out from the competition.

Some businesses that we suggest to consider Nebraska professional liability insurance include:

• Accountants
• Photographers
• Event planners
• Graphic designers
• Career coaches
• Management consultants
• And more

Nebraska workers compensation insurance

Hiring employees can help you boost your business, but it also opens you up to new business insurance requirements. Most employers need to carry Nebraska workers compensation insurance. There are some limited exceptions, like domestic workers and executive officers, but you should generally plan on adding this policy when you hire your first employee.

Why is this policy required? Nebraska workers comp insurance can help employers cover the costs associated with an employee who gets injured or sick on the job.

Workers compensation insurance typically covers:

• Lost wages
• Medical payments
• Rehab expenses
• Death benefits

The average workers’ comp claim is a staggering $41,000, so having a policy in place benefits both the employee and employer.

Other types of business insurance in Nebraska

The three main types of Nebraska business insurance cover common scenarios, but you still might need additional coverage. Here are some other policies that may apply to your business:

• Commercial auto insurance. If you plan to use your vehicle when conducting business, talk to your auto insurance agent to make sure your policy extends to that situation. You also might need coverage for trailers or mobile salon units.

• Home-based business insurance. Even though your office is in your house, your homeowners insurance might not cover that space. A home-based business insurance policy can fill the gap between homeowners and business insurance.

• Contractors bond. While a construction bond isn’t technically insurance, it can help you build trust with your customers and community. Having the assurance that the project finances are covered provides peace of mind for everyone.

Nebraska Workers Compensation: What You Need to Know

Since employers are usually required to carry Nebraska workers compensation insurance, it helps to understand what factors influence the cost of the coverage. Your workers comp policy and premiums may depend on these situations:

• The type of work you do
• How many employees you have
• Your workplace safety history

Since a safe workplace is less likely to use their Nebraska workers compensation, the state encourages safe workplaces. Most employers need to establish a safety committee to create and maintain a plan to prevent injuries or accidents on the job.

Employees can request a free health hazard evaluation by the National Institute for Occupational Safety and Health (NIOSH).

How Much Does Nebraska Business Insurance Cost?

Let’s talk about money. Small business owners must be mindful of their expenses, and be able to find a balance between coverage and price. Fortunately, every Nebraska business insurance policy is customized.

Your policy and premium usually depend on the following:

• Your location
• The services you offer
• Your business size
• Which policies you choose

All of this means that a 10-person construction company will pay a higher amount for insurance than a solo founder selling candles at farmers’ markets. Customized insurance quotes and policies help you avoid overpaying for more coverage than you need. You can also save money by bundling policies.

At Simply Business, general liability insurance quotes can start as low as $22.50 a month.* That would mean potentially paying less than a dollar a day each month to protect the business you’ve worked so hard to make a reality.

If you want a better idea of how much your Nebraska business insurance could cost, it’s best to get a free quote. You can answer a few questions online or speak with one of our agents at 855-563-0388.

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How Do I Get Business Insurance in Nebraska?

Before you start shopping for Nebraska business insurance, take a moment to understand the requirements for your business. Then, you’ll be ready to compare quotes and find a policy you’re comfortable with. Here are some tips for navigating the Nebraska business insurance process.

To find what insurance requirements and recommendations apply to your business:

1. Make a list of all the services you’ll provide, as licensing and insurance rules could vary between job types.
2. Review the Nebraska business licensing homepage or use the One-Stop Business website to look for occupation-based licensing. You'll often find insurance requirements regarding license applications.
3. Research local licensing and insurance rules on your county and city websites.
4. Talk to local business owners or connect with trade associations to learn which policies they have and usually recommend.
5. If you have employees or plan to hire soon, review Nebraska workers’ compensation rules.

Once you know which Nebraska business insurance policies you need or want, it’s time to start comparing policies. If you’re shopping for insurance on the Simply Business platform, feel free to reach out to our licensed insurance agents at 855-563-0388 to answer any questions you have.

Simply Business Is Here to Help

Have a business question? We might have a guide for it on our blog, Simply U. There, you’ll find posts about starting a business, growing your company, and more. You also can check out our FAQs to learn more about the ins-and-outs of business insurance.

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*Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on January - December 2020 data of 10% of our total policies sold.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.