Find the Best Business Insurance Options in Maryland
Every business in Maryland, regardless of size, needs to be equipped with a business insurance policy. Having business insurance can mean the difference between success and failure for a business after major disasters like employee theft, lawsuits, fires, vandalism, and more.
Maryland currently has about 594,000 small businesses that need their own coverage. Further, Maryland's 1.1 million small business employees are in need of protection by their employer's workers' compensation coverage. An independent insurance agent in Maryland can help your business get set up with the right kind of business insurance. For starters, though, here's a deeper breakdown of business insurance options and requirements in the state of Maryland.
Best Business Insurance Companies in Maryland
While you can find business insurance from many different insurance companies in Maryland, a few select carriers rise to the top of the list. We've compiled a few of our picks for the best business insurance companies in Maryland for your convenience. When you're ready to find coverage, start with these top contenders, first.
- Nationwide: Nationwide has a huge catalog of coverages in addition to business insurance. The carrier also has excellent ratings from both AM Best and the Better Business Bureau (BBB) and offers 24/7 claims reporting.
- Amica: Amica is an older, well-established company that also sells a ton of small business insurance products along with personal coverages. They're rated "A+" by AM Best.
- Allstate: Allstate is one of the largest insurance companies in the US and offers a wide variety of personal and business insurance products. The carrier works with independent insurance agents and is rated "A+" by AM Best.
- Progressive: Progressive offers a large catalog of insurance coverages, including business insurance. The carrier has excellent financial strength and offers 24/7/365 customer service. Progressive is also known for offering many discount options.
A Maryland independent insurance agent can help you find the business insurance you need from one of these top carriers.
Maryland Business Insurance Requirements
The only coverage required by Maryland state law is workers' compensation insurance, for any business with employees. However, all businesses in the state might still want to consider getting a larger business insurance policy to protect them against a number of different threats. A business could face serious financial consequences without general liability insurance in case of a lawsuit. You could also stand to lose all your business's property after a major disaster if you lack commercial property insurance. That said, the only coverage mandated by the state is workers' comp.
Every business in Maryland that has at least one employee must have workers' compensation insurance by state law. So the only state-required business insurance coverage is:
Optional business insurance coverages in Maryland include:
- Business income insurance
- Professional liability insurance
- Cyber liability insurance
- Commercial general liability insurance
- Commercial property insurance
- Commercial auto insurance
A Maryland independent insurance agent can help you find the right workers' compensation and other business insurance coverage you may need.
What Business Insurance Covers in Maryland
What your business insurance policy covers in Maryland depends on the type of coverage you choose. Ideally, your business insurance policy will have several different coverages to protect various aspects of your business, including property and inventory, income, employees, vehicles, cyber risks, and more. With a commercial auto policy, your business gains financial protection against lawsuits related to accidents, as well as the ability to repair or replace company vehicles after an incident like fire, vandalism, theft, etc. Having business income insurance is also helpful to replace lost income if your business must close after a covered disaster like a fire. But depending on the coverages in your specific business insurance policy, your company may or may not have all of these protections.
Liability Coverage Options for Small Businesses in Maryland
All businesses in Maryland most likely want to be equipped with at least general liability insurance. Still, there are other critical liability coverages to consider, and they each protect your business in a different way. The three major types of liability coverage are:
- Professional liability insurance: Reimburses legal costs if your business gets sued by a third party for claims of improper advice or services performed in a way that caused injury or loss.
- Commercial general liability insurance: Reimburses losses caused by third-party lawsuits filed against your business for claims of personal property damage or bodily injury.
- Cyber liability insurance: Reimburses losses related to data breaches and other cyber threats that can lead to the exposure of sensitive or private data and information, including customer credit card numbers.
A Maryland independent insurance agent can help you find the right kind of liability coverage for your unique business.
Property Coverage Options for Small Businesses in Maryland
If your business has a storefront or office building, or inventory that would be expensive to replace, you'll want to consider getting property insurance.
- Commercial property insurance: Reimburses losses caused by theft or vandalism, or other threats that damage or destroy your business's property, including its building and inventory.
Your independent insurance agent in Maryland can help you find the right kind of property coverage for your business.
Other Insurance Options for Small Business Owners in Maryland
Beyond liability and property coverage, there are still other types of business insurance to consider. A couple of additional major coverages needed by many businesses in Maryland are:
- Business income insurance: Reimburses your business for lost income caused by closures following covered disasters, such as fire damage.
- Commercial auto insurance: Reimburses your business for losses related to company vehicles, including lawsuits after accidents, theft or vandalism, and more.
An independent insurance agent in Maryland can help you get set up with all the additional business insurance coverages your company may need.
Average Cost of Business Insurance in Maryland
Business insurance costs in Maryland vary depending on the types of coverage you purchase, policy coverage limits, and other options. Still, other factors like your business's exact location and size impact your rates, as larger businesses require more coverage by nature. If your business is located along the coast, its coverage is also likely to be more expensive due to the increased risk of storm damage. Also, the type of business you run, along with its specific risks and operations, impacts business insurance costs because the more risks your company has, the more costly it will be to insure. A business with a higher risk level, such as one in the construction industry, will pay much more for coverage than a small clothing store.