Find the Best Business Insurance Options in Connecticut

There are over 360,000 small businesses in Connecticut, which represents over 99 percent of the businesses in the state. 

Business owners in Connecticut face various risks, from severe weather, fires, and other kinds of property damage to the financial devastation that a single lawsuit can bring. If you own a business in Connecticut, a comprehensive business insurance program can help you repair and rebuild damaged property after a disaster. It can help you stay in business and pay for your defense if you are faced with a lawsuit.

An independent insurance agent can help you compare business insurance quotes in Connecticut. 

Best Business Insurance Companies in Connecticut

There are numerous insurance companies that offer business insurance in Connecticut. The following are some of the best business insurance companies near you. They are highly rated for their mix of valuable coverage offerings and competitive pricing. 

  • Travelers: Travelers offers highly rated business insurance in Connecticut. The company provides a variety of business insurance options, including inland marine, workers' compensation, and general liability. 
  • Liberty Mutual: Liberty Mutual is headquartered in Boston, MA, and has been offering business insurance since 1912. Today the company offers a flexible, multiline range of coverages designed to meet the needs of any business, regardless of size or industry. 
  • EMC Insurance CompaniesEMC is in the top 60 business insurance companies in the United States. The company specializes in designing well-rounded insurance programs to protect the financial assets of many types of businesses and organizations.  
  • Nationwide: Nationwide provides business insurance and other popular types of insurance coverage in Connecticut. The company is headquartered in Columbus, OH, and is represented by independent insurance agents in 50 states, including Connecticut. 
  • Hanover Insurance Group: Together with local independent agents, Hanover Insurance Group offers standard and specialized insurance protection for small and mid-sized businesses. 

An independent insurance agent in your area can help you learn more about these and other CT business insurance companies. A local agent can help you get competitive quotes for the coverage that fits your Connecticut business insurance needs.

Connecticut Business Insurance Requirements

Business insurance is a package of insurance policies covering your property and liability risks. Connecticut's law does not require most types of business insurance. But if your business owns any vehicles, you'll likely have to buy commercial vehicle insurance that complies with the state’s financial responsibility laws.

In addition, Connecticut employers with one or more employees must purchase workers’ compensation insurance, with a few exceptions. Workers' compensation insurance helps injured workers pay for the costs of medical care and lost wages if they are injured on the job.

Your independent insurance agent can help you learn more about the requirements for commercial vehicle insurance and workers’ compensation insurance in Connecticut.

What Business Insurance Covers in Connecticut

A typical business insurance package in Connecticut will include the following types of coverage, at a minimum:

  • Commercial general liability (CGL) insurance: Protects your business from lawsuits related to bodily injury and property damage claims. It pays for medical expenses, legal fees, and financial settlements or judgments. Your CGL policy even covers personal injury claims such as libel and slander.
  • Commercial property insurance: This covers damage to a building and its contents if damaged by a weather event, fire, theft, vandalism, and other covered perils. 
  • Business interruption coverage: Protects your earnings and pays certain expenses if your business cannot operate because of damage after a fire, hail, wind, equipment breakdown, or another covered event. If you are forced to close for a while to make repairs or rebuild your business, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
  • Commercial auto insurance: Protects your business-owned cars and trucks from property damage and liability claims. 
  • Workers’ compensation insurance: Pays for medical expenses and a portion of an employee's lost wages after a work-related injury. 

Your business insurance in Connecticut may include additional policies that cover your unique risks. 

Liability Coverage Options for Small Businesses in Connecticut

Many small businesses would have a hard time recovering if they were faced with a lawsuit. Liability insurance can cover you when you’re accused of causing harm to an individual or another business. There are numerous liability coverage options for small businesses in Connecticut. 

commercial general liability (CGL) policy offers protection from many types of negligence claims, from simple trips and falls on your premises to significant product liability cases. It covers your legal costs, the injured party's medical expenses, other damages for the injured party, and any settlements or judgments you must pay.

Be aware that CGL policies do not protect you from every type of lawsuit. You likely need additional liability policies or endorsements that supplement your CGL policy and eliminate any gaps in your protection. 

Talk to your independent insurance agent about why you might need environmental liability insuranceprofessional liability insurancecyber liability insurance, or other types of liability coverage for your Connecticut business.

Property Coverage Options for Small Businesses in Connecticut

Property losses can originate in a variety of ways and cause tremendous harm to your business. Here are the basic business property coverage options in Connecticut:

Commercial Property Insurance 

  • Protects you when your commercial property is damaged by someone else or by some type of unforeseen event. 
  • You need business property insurance if you own your building or have tangible business assets (furniture, computers, fixtures, inventory, materials, tools, etc.).
  • Repairs or replaces damaged or destroyed commercial property after damage due to fire, vandalism, smoke, theft, severe weather, and other causes of loss. 

Business Interruption Insurance

  • Usually included as part of a commercial property policy. 
  • Protects your earnings if your business is unable to operate because of damage after a fire, hail, wind, equipment breakdown, or some other covered event. 
  • If you’re forced to close your doors for a period of time in order to make repairs, this coverage pays for rent, employee salaries, lost income, relocation fees, and more. 

A local independent insurance agent can help you get quotes for business property insurance in Connecticut.

Other Insurance Options for Small Business Owners in Connecticut

Your business insurance needs likely don’t end with basic property and liability coverage. Other insurance options for small business owners in Connecticut include:

  • Business owners policy (BOP): A package policy that includes commercial liability insurance, commercial property insurance, and business interruption insurance. 
  • Workers’ compensation insurance: Typically required for any business that has employees. It pays for lost income and medical expenses for employees who are injured on the job.
  • Commercial auto insurance: Covers your vehicles and drivers in the event of an accident or other types of vehicle damage. 
  • Cyber liability insurance: Provides coverage in the event of a data breach involving your business.
  • Employment practices liability insurance: Protects you if an employee sues you for discriminatory employment practices. 
  • Flood or hurricane insurance: Your basic commercial property policy does not cover flood or hurricane damage. Talk to your agent about flood and hurricane insurance if you live in an area that is prone to these events.
  • Professional liability insurance: Protects you if a client claims you have been negligent in providing professional services.
  • Commercial umbrella insurance: Provides excess liability coverage above and beyond the limits of your applicable underlying commercial liability policies. 

This is not an exhaustive list of your business insurance options in Connecticut. An independent insurance agent can make sure that all of your Connecticut business insurance needs are met. 

Average Cost of Business Insurance in Connecticut

Because every business is unique and there are many variables that contribute to the cost of business insurance, it is difficult to compute the average cost of business insurance in Connecticut. Several factors, including the following, influence the cost of Connecticut business insurance:

  • The size and physical location of your business
  • Your number of employees
  • Your gross sales and payroll
  • The nature of your business (what do you do?)
  • The value of your physical assets (buildings, vehicles, machines, equipment, inventory, etc.)
  • Your prior claims history
  • The types and amounts of coverage that you need

An independent insurance agent can help you understand all of the risks you face and get quotes for affordable business insurance in Connecticut.

National Business Insurance Stats

Number of businesses in the US: 30,819,176

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
New Britain3,9482.602.50
New Haven8,9765.055.51
West Hartford6,5562.071.34

How Does Your Connecticut City Measure Up?

Property: Your business owns essential property such as computers, furniture, tools, machinery, inventory, and supplies. Business property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged by a covered event like a structure fire.

Commercial auto: Many businesses in Bridgeport have company-owned vehicles, including cars, vans, buses, and trucks. If yours is among them, you will be required to cover these vehicles with a commercial auto insurance policy. Doing so can prevent your business from facing a financially devastating lawsuit if one of your drivers is responsible for a serious accident. A comprehensive policy can also cover damage to your vehicle, even if the damage is the fault of your driver. 

Workers’ compensation: Workers’ compensation insurance covers expenses like medical bills and disability payments for workers who are injured in the course of doing their jobs. It is required for Connecticut businesses that have at least one employee. Rates for this coverage are assigned according to your company’s overall payroll amount and the types of jobs your workers do.

Property: Hartford has a relatively high property crime rate, with residents and businesses reporting more than 600 burglaries and 3,000 thefts every year. This makes it particularly relevant for local business owners to ensure that their company assets are sufficiently covered against crimes like theft, vandalism, and embezzlement. In addition to covering against crime, your policy can also cover loss and damage due to hazards like severe weather and accidental fires.

Commercial auto: Commercial vehicle insurance can protect your business from facing large liability expenses if one of your drivers causes an accident while driving a company car. Rates are based on several factors, such as your employees’ driving records and the types of vehicles you are covering. For example, it costs far more to insure a large construction vehicle than it does to cover a company car since the larger vehicle can cause significantly more property damage if involved in a collision.

Workers’ compensation: Workers’ compensation insurance is designed to cover the cost of medical treatments, lost wages, and other expenses related to injuries or occupational illnesses your employees may suffer because of doing their jobs. With very few exceptions, it is required for all employers in Connecticut. Workers' compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.

Property: Hazards like theft, vandalism, accidental fires, and severe weather can lead to significant loss and damage to your business-owned property. Hurricanes are among the most damaging weather risks in this city. For example, in 2012, Hurricane Sandy brought storm surges measuring nine feet to the New Haven area and caused more than $360 million in damage in this state. Make sure that your business insurance policy package includes flood insurance so that you are fully covered against the damage a hurricane can bring.

Commercial auto: If your business owns a vehicle or vehicles, you may find it beneficial to have the added liability coverage that comes with a commercial auto insurance policy. This is because liability lawsuits related to collisions often result in higher judgments when they are brought against a business. Your rates will be based on several factors, including the number and types of vehicles you are covering, information about the employees who will be driving them, and the risk of collisions in the areas where they are likely to be driven.

Workers’ compensation: Workers’ compensation insurance can cover the cost of medical bills and lost wages if your workers are injured on the job or if they come down with an occupational illness. Rates are based primarily on your company’s overall payroll and the likelihood that your employees will be injured at work according to the types of jobs they do.

Property: You will want to be sure that all of your business property is covered at levels that will allow you to rebuild, repair, or replace damaged items as needed. Floods pose a significant risk in Stamford, especially during hurricane season, but coverage against this hazard is typically excluded from business property coverage.

Commercial auto: Whether you are insuring a delivery van or a fleet of construction vehicles, commercial vehicle insurance can protect your business against losses related to liability lawsuits and property damage following a collision. 

Workers’ compensation: Workers’ compensation insurance is required by Connecticut state law for all businesses with at least one employee. This insurance can cover medical treatments, disability pay, and other costs associated with injuries that occur on the job. Every type of business has specific risks when it comes to employee safety, and some jobs are simply safer than others. That is why workers' compensation rates often vary significantly from one business to the next.

Property: Having a sufficient amount of business property insurance can shield your company from losses related to hazards like accidental fires, property crimes, and severe weather events like hail, heavy snows, gusty winds, and electrical storms. 

Commercial auto: If your Waterbury business owns a vehicle or fleet of vehicles, you will be required to carry commercial auto insurance. Rates for coverage can vary according to the number and types of vehicles you are covering, as well as the risk of collisions and of vehicular theft where they will be driven. If your company uses its vehicles to engage in interstate commerce, you will need to make sure that your commercial vehicle policy meets federal as well as state minimum coverage requirements. 

Workers’ compensation: Workers’ compensation insurance covers medical expenses and paid time off for employees who suffer occupational illnesses or are injured on the job. With few exceptions, if your Waterbury business has employees, you are required by state law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll.

Popular Questions About Business Insurance in Connecticut

While you can't predict the exact costs of small business insurance in Connecticut, it’s important to understand what variables play a role in your rates. Here are just a few of the factors that insurance companies use when calculating your business insurance costs in Connecticut: 

  • Type of industry
  • Number of employees
  • Gross annual sales
  • Location of business
  • Number of company vehicles
  • Past claims reported
  • Number of years in operation

In Connecticut, it’s essential for almost every business to carry a comprehensive business insurance package. But business insurance is not required by law in Connecticut, except for workers’ compensation insurance. Workers’ compensation is required for every employer with one or more employees, with a few exceptions. 

In addition, if you own any vehicles, you’re required to comply with Connecticut’s car insurance laws. 

Most businesses in Connecticut need a combination of property and liability insurance, in addition to workers’ compensation insurance and commercial vehicle insurance as required by the state. 

Depending on your unique business and the risks you face, you’ll likely need some additional coverage, such as professional liability insurance, commercial umbrella insurance, or cyber liability insurance. 

Small business general liability insurance is one of the first policies every small business owner obtains. It helps protect your operation from bodily injury and property damage lawsuits that come your way as a result of doing business. Though not mandatory by Connecticut state law, this policy is necessary to avoid major financial ruin.

Health insurance and other employee benefits are important for many small businesses and their employees. A good employee benefits plan helps companies support a healthy and satisfied workforce. In addition, employers who offer employee health plans may also be eligible for significant tax benefits. 

There are many different health insurance policy types and options available for you to choose from. An independent insurance agent can help you find small business health insurance plans in Connecticut.

TravelersNationwideLiberty MutualEMC, and Hanover Insurance Group are some of the best small business insurance companies in Connecticut. They are highly rated for offering broad coverage, top-notch customer service, and a variety of affordable options for business owners.

Searching for the best and most affordable business insurance can be frustrating and confusing. That’s why it pays to have an experienced insurance professional in your corner.

Find an independent insurance agent in Connecticut now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.  

Do You Know What Your Business Insurance Covers in Connecticut?