Connecticut Business Insurance

Got Business Assets or Exposures? Connecticut Business Insurance 101

There are more than 330,000 firms based in Connecticut. Some are large, multi-million dollar companies like Alexion Pharmaceuticals and Sterling Piano Company, while most are small, privately owned businesses. Regardless of your company’s size, a business insurance policy may be necessary to protect the investment you have made in it. You never know what your company might grow into. All businesses have potential, so be sure to check out commercial insurance quotes and get on track to properly securing your company.

Top 5 CT-Based Businesses

  • Retail trade: approximately 9,100 firms
  • Professional, scientific and technical firms: approximately 9,000 firms
  • Construction: approximately 8,600 firms
  • Healthcare and social assistance: approximately 7,600 firms
  • Accommodation and food services: approximately 6,500 firms

Regardless of which industry your particular business falls into, you are likely to face certain hazards that could potentially cause your business to suffer a financial setback. For example, if you own a storefront retail establishment and a customer slips on wet floor while shopping, you may face liability charges for medical expenses. If you own a home improvements contracting company and some work that your employees do on someone’s house is not sufficiently up to code, you can find your business sued by the customer.

Each industry has its own potential risks. This is why there is no such thing as one-size-fits-all commercial insurance. It is a good idea to seek the advice of a financial adviser or an insurance professional for help building a suitable policy for your business.

CT Business Revenues, 2007

  • Manufacturers’ shipments: $58.40 billion
  • Merchant wholesaler sales: $107.92 billion
  • Accommodation and food service sales: $9.14 million
  • Retail sales: $52.17 billion
  • Retail sales per capita: $14,953

Is a Business Insurance Policy Mandatory in Connecticut?

Here are scenarios that will require you to have business insurance coverage:

  • Businesses that employee others will have to provide workers compensation, disability and unemployment insurance. You can get this type of coverage as part of some business insurance packages or purchase it separately.
  • If your business operation uses company-owned cars or trucks, you will need a commercial vehicle policy. You may be able to get this coverage as part of business auto insurance or purchase it separately.
  • If your employees use their own personal cars to do company business, their car insurance providers may not cover damage if an accident occurs while on the job. This opens you up to liability issues. You can protect yourself with a for-hire or non-owned vehicle liability policy, which business insurance packages often include.
  • If you have taken out a business loan or have a mortgage on the building where you house your business, your lender may require you to carry a commercial insurance policy for the duration of your loan.
  • If you rent the building space where you house your business, your landlord may require you to carry business insurance as one of the terms of your lease.
  • If your business serves alcoholic beverages, you will be required to carry liquor liability insurance, which you can purchase as part of a comprehensive business insurance policy.

In many cases, you are not required to have business insurance at all. Its not being mandatory, however, does not indicate that it is not important. One small, unexpected mishap, such as severe damage from a hurricane or a lawsuit brought on by a serious injury, has the potential to cause enough financial devastation to force you to file for bankruptcy and close your business down.

There is a good chance you have invested a lot of time, money and effort into getting your business off the ground. Safeguard it well so that it may allow you to prosper.

Connecticut Small Business Statistics

  • In 2009, there were 318,230 businesses with fewer than 500 employees based in Connecticut.
  • Of these, 246,784 were sole proprietorships with no employees.
  • The small companies with employees provided 734,564 jobs within the state.
  • Small firms provide approximately 50% of CT’s private-sector employment.
  • In 2010, more businesses opened in CT than closed.
  • In that same year, 459 of Connecticut’s small businesses filed for bankruptcy.

What Does Business Insurance Cover in Connecticut?

Commercial policies are as diverse as the companies that rely on them. This is why you are able to customize your policy to meet your business’s specific needs. These are some of the coverage options:

  • Liability insurance: There are a range of liability coverage types. The most commonly purchased are the following:
    • General liability
    • Professional liability
    • Product liability
    • Liquor liability
    • Commercial vehicle liability
  • Property insurance: If your property sustains damage due to weather, vandalism or theft, this coverage will come into play. Coverage types may include the following:
    • Building/structural coverage
    • Contents coverage
    • Signage coverage
    • Commercial vehicle collision coverage
  • Lost income insurance: if your business needs to cease operations temporarily due to a covered event, this coverage will provide continued income in the interim so that you can continue to pay employee salaries and monthly bills.

There are a number of different coverage options. Some policies cater specifically to restaurant owners, while others cater to non-profit organizations.

It is important to note that business insurance does not usually cover flood or earthquake damage, and this sort of damage is not unheard of in Connecticut. You can get coverage for all catastrophes with the right insurance policy; it may be as simple as purchasing a rider, or an additional flood insurance policy from the NFIP. An insurance agent can help you put together the right package of coverage.

Before You Apply for Coverage

Prior to actually reviewing quotes and applying for business insurance coverage, you should be prepared to provide information regarding your business, such as the following:

  • Addresses of business locations
  • Physical features and characteristics of business locations, including square footage, year of construction, fire suppression devices, number of floors and year of construction
  • Information about officers and employees, including background checks, drivers and professional license information, and personal information
  • Property owned by the business
  • Prior claims history

Having this information readily available will help your agent get you applicable and reasonable policy quotes for your business.

Where to Find Coverage

Purchasing an appropriate business insurance policy requires forethought and planning. You must be sure to take into consideration all the possible risks that your Connecticut-based business may face so that you can properly protect yourself from unwarranted financial loss. It is also a good idea to obtain several commercial insurance quotes to ensure you're not going to overpay for your policy. An independent agent in the Trusted Choice® network can assist you with all of this.

Contact a local agent to get more information about how business insurance can protect your company.

Now, who's ready to get their insurance problems solved?