Vermont Business Insurance

Thinking about the future of your business is exciting. What projects will you work on? How will your business grow and change?

One topic that most business owners aren’t daydreaming about is getting a business insurance policy. While the topic isn’t always the most exciting, it is really important. Learning about Vermont business insurance also can be easier than you think.

As long as you take it one step at a time, you’ll be back to daydreaming about five-star reviews and booming revenue in no time.

Vermont Business Insurance: The Basics

Vermont business insurance has some benefits that you’re probably aware of and others you’ve never considered. To understand why some business owners opt into coverage, it helps to know what Vermont business insurance is.

Like other insurance types, Vermont business insurance could help you pay for damages or lawsuits if your business were to cause an accident. Different policies cover various scenarios, but the process is basically the same:

1. You choose a coverage amount that matches your business needs and size
2. You pay a premium to initiate and maintain the coverage
3. You file a claim to potentially use your policy to cover accidents

With that in mind, it’s understandable that the business insurance benefits front and center in everyone’s mind are financial ones. The average claim for customer injury or damage is $30,000, and without insurance, you could be liable for that hefty amount.

Pause for a moment and think about your business finances. Suppose you don’t have thousands of dollars set aside to handle accidents. In that case, Vermont business insurance could keep you from having to get a loan or even filing for bankruptcy.

Vermont business insurance isn’t all doom and gloom, however. Some of the ways it can be there for you on your best days include:

• Building trust with potential customers, which could help you make more sales
• Setting you apart from uninsured competitors
• Attracting and retaining top employees who want to work for a reliable company
• Helping you secure a business loan or stand out as a potential tenant

General liability insurance in Vermont

If you’re looking for a Vermont business insurance policy that covers a wide range of accidents or mishaps, general liability insurance might be a good fit. This type of policy typically covers:

• Third-party medical expenses
• Property damage or injury due to your product or completed service
• Third-party property damage
• Personal and advertising injury
• And more

Here’s what some of those scenarios would look like in real life:

• An upholsterer is picking up furniture from a client’s home to take back to their shop. On the way out to the truck, the upholsterer bumps a china cabinet and breaks some of the expensive collectibles inside.

If the client decides to sue, the upholsterer might have to pay to replace the broken items. General liability insurance in Vermont could help cover the damages and protect their business savings as well.

• An advertising agency hosts a client in the office for a presentation. On their way out, the client slips on the stairs and breaks their ankle.

The client has to get an ambulance to the hospital since they can’t drive, and now they want the agency to pay for the hospital and ambulance bills. Unless the agency has a business insurance policy, they could be wholly responsible for those costly medical bills.

• A window cleaner is working at an office building when a bucket slips and breaks a window. The building owner claims it’s the cleaner’s fault and sues for the replacement cost of the window.

If the window cleaner had insurance, their policy might be able to help cover the costs. An uninsured window cleaner would have to use their business savings to pay the claim, though, even if it means depleting their account.

Accidents can happen to anyone at any time, even when you do your best to be careful. Simply Business works with over 80 types of businesses, but how do you know if you have to have a policy to operate legally?

General liability insurance in Vermont isn’t a universal requirement. Instead, licensing and insurance requirements might be based on the type of work you do or the area where you live.

You may need to show proof of coverage with a Certificate of Insurance (COI) if general liability coverage is part of your licensing process. Examples of requirements for general liability insurance in Vermont include:

• Mobile barber or cosmetology shops need to submit a copy of their general liability insurance certificate when they apply for a license.

• Amusement ride operators need a minimum of $1,000,000 of general liability insurance in Vermont.

• Boiler contractors need to show proof of minimum general liability insurance coverage for $1,000,000 per occurrence and $3,000,000 aggregate.

If you want to start a contracting business, check out our guide to getting a contractor license in Vermont.

Not sure if your occupation has insurance requirements? Review this list of licensing agencies and search for your trade on the list of licensed occupations. It’s a good idea to look for local requirements via your county and city clerk too.

You also can talk to a Simply Business licensed insurance agent by calling 855-559-0359 or comparing insurance options by getting a free custom quote online with our questionnaire.

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Professional liability insurance in Vermont

You give your best effort on every project and strive to always do what’s right. But what happens if you make a mistake? Or an angry client claims you made a mistake?

In these cases, you could face a negligence lawsuit where a client claims they were harmed as a result of something you did or didn’t do. Without professional liability insurance in Vermont, your business might be liable to pay for the damages out of pocket. At the very least, you’d have to pay for a lawyer to defend your case if you believed you didn’t act negligently.

Since slip-ups can happen to anyone, we recommend professional liability insurance for a wide range of businesses.

This type of policy typically covers:

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

Some scenarios where a business owner may be able to use their professional liability coverage to pay for a lawsuit include:

• An education consultant who inadvertently allows a student to enroll in a course for which they don’t have the prerequisites
• A nutritionist who recommends a diet plan that leads to an allergic reaction in a client
• A web designer who didn’t realize an image could be viewed as explicit or inappropriate until after the site was launched

In each of these scenarios, the business owner could be liable for a huge amount of money in damages if they were uninsured. Often, the decision to get professional liability insurance in Vermont is left up to the business owner. You should always confirm requirements with your licensing agency or professional board, though.

Vermont workers compensation insurance

The two previous Vermont business insurance types focused mainly on accidents and injuries to people outside your business. If you want to protect the people within your business, you should consider workers compensation insurance.

Vermont workers compensation insurance exists to cover costs associated with employees who get sick or injured on the job. If you have employees, you likely need Vermont workers comp. This is a statewide rule that applies to every industry.

Vermont workers comp insurance typically covers:

• Rehabilitation costs
• Medical payments
• Lost wages
• Death benefits

In Vermont, this policy doesn’t cover every injury. The state outlines that compensation isn’t provided for injuries caused by employee intoxication, willful intent to injure themselves or others, or failure to use provided safety measures.

Other types of business insurance in Vermont

Every business is unique, and there’s a wide range of business insurance policies available. To decide which coverage you could benefit from, take a moment to think about where you’ll conduct your business, what risks you may face, and what assets you have.

Some additional policies to consider are:

• Home-based business insurance. Launching your business from your laptop at the kitchen table is faster and cheaper than renting office space. You might not realize that home office space can fall between the cracks of both homeowners and general liability insurance. That’s where a home-based business insurance policy can help.

• Business personal property. Some businesses require more tools or equipment, which means they could benefit from business personal property. Extra coverage for your assets could help you replace them if they’re damaged or stolen.

• Commercial auto insurance. Every motor vehicle in Vermont has minimum insurance requirements. If you think you’ll use your vehicle to conduct business, be sure to talk to your agent about whether or not your policy extends to those scenarios.

Vermont Workers Compensation: What You Need to Know

If you don’t have employees and aren’t planning to add any in the near future, you don’t need to carry Vermont workers compensation. But when it is time to find and compare coverage, keep these tips in mind:

• Your rate depends on a few factors, including your safety. Vermont workers comp premiums depend on factors like the type of work you do and how many employees you have. Another key component is your safety record. So, if you want to keep premiums low, prioritize safety.

• Safety is an ongoing effort. Safety measures aren’t much good if you just slap a poster on the wall and carry on. The state recognizes 13 components in a comprehensive safety approach, including training, enforcement, and rewards.

• There’s more to hiring than getting a Vermont workers comp policy. There are administrative steps to take whether you’re hiring your first or hundredth employee. These include completing tax documents, submitting new-hire paperwork, and posting mandatory workplace posters.

If you still have questions about Vermont workers compensation insurance, refer to the Vermont Department of Labor website.

How Much Does Vermont Business Insurance Cost?

If someone were to ask you, “How much does a house cost?” you probably wouldn’t be able to give them a straight answer. There are so many variables to consider that there’s no such thing as a “right answer.” That benefits buyers looking for a home, though, because we don't all have the same priorities or budgets.

Vermont business insurance is the same way. Prices usually depend on your location, what type of business you run, which policies you choose, and your company’s size. While this makes it hard to give a broad estimate, it means that every business owner can find the policy that fits just right for them.

The best way to understand how much your Vermont business insurance will cost is to compare quotes. It takes less than 10 minutes to find insurance plans that consider your specific business and better understand what you’ll need to budget.

Want to know your options? Get a free quote now.

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How Do I Get Business Insurance in Vermont?

You’ve reviewed the different Vermont business insurance policies available, what they cover, and who they could help. Now what? Here are the key steps to getting business insurance in Vermont:

• Make a list of the type of services you’ll provide, where your business will operate, and whether you’ll have employees. These are some of the factors that will influence your insurance requirements and recommendations. If you want to talk to someone about your business plans, reach out to the Vermont Small Business Development Center.

• Look for insurance requirements on business licensing applications for your industry and area. Some useful places to learn about these rules are through licensing boards or the state’s Office of Professional Regulation. Be sure to talk to your local government, such as the county clerk’s office, about license requirements. Remember that you can usually choose to get business insurance even if it’s not legally required.

• If you have employees, you’ll likely need Vermont workers comp insurance. Familiarize yourself with requirements on the Department of Labor’s website.

• Compare free insurance quotes to find a plan you're comfortable with. It takes only a few minutes to get a quote online or talk to an insurance agent at 855-559-0359. Your insurance policy can grow and change with your business, so you won’t need to pay for a policy that’s above your needs.

• Download your Certificate of Insurance (COI) once you have a policy. This proves that you’re covered, and the COI may be needed to get licensed, rent office space, and more.

Simply Business Is Here to Help

We’re happy to help business owners across the country, whether through connecting them with the perfect insurance policy or answering their questions on the Simply U blog.

If you have any additional questions about Vermont business insurance, check out our FAQ page, read our guide to getting your Vermont business license, or speak to one of our licensed insurance agents at 855-559-0359.

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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.