Frederick Business Insurance

Your Complete Guide to Frederick, MD Business Insurance

Find the right business insurance policy for you.

There are more than 540,000 businesses currently operating in Maryland. Nearly 7,000 of these businesses can be found in the booming city of Frederick. Businesses in the professional, scientific, technical services, and retail trade industries do especially well in this city. But companies in a wide range of industries are thriving here. If you own a business in Frederick, you can protect your investment with a comprehensive commercial insurance plan. A local independent insurance agent can help you identify the various risks your company faces and can recommend the appropriate business insurance products to cover against them. Talk to an agent near you to learn more.

Liability Insurance for Small Businesses in Frederick

As a business owner in Frederick, you can benefit from the liability coverage that is included in your commercial insurance policy. Commercial liability insurance is designed to cover the various costs — such as court costs, legal fees, and damages — that are associated with certain liability lawsuits. All business insurance policies include commercial general liability insurance (CGL). It has two coverage components:

Many businesses have liability risks that go beyond what CGL can cover. Fortunately, there are several types of commercial liability insurance available, so business owners can customize their coverage to meet their companies’ specific needs. Some examples of liability products you may want to consider include:

Let an independent insurance agent help you determine which liability products are right for your Frederick business.

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Cybercrime Insurance for Frederick Small Businesses

Cyber liability insurance is a somewhat new liability product, and it is one that merits more attention. This insurance was created to shield businesses from financial losses related to the growing threat of cybercrime. 

  • Number of identity theft complaints in Maryland per year: 5,734
  • Ranked 10th highest for identity theft complaints in the US
  • Only 22% of businesses have a cyber/data breach response plan

Many businesses store their customers’ personal and financial data electronically. Even with firewalls and passwords, hackers can often find a way to access this information and then use it to commit identity theft and fraud. Companies that experience such a data breach are frequently held liable for the expensive cost of covering the cost of the resultant damages. If your Frederick business uses computers to store sensitive customer data, it is at risk. Be sure to ask an independent agent for more information about how cyber liability insurance can help.

Property Insurance for Small Businesses in Frederick, MD

Commercial property insurance is another important part of all business insurance policies. It is designed to cover your business assets, including inventory, merchandise, tools, computers, furniture, and more. Some commercial property requires specialized coverage, like inland marine insurance or contractors equipment insurance, so be sure to consult your independent agent.

  • Number of federally declared disasters in MD since 1953: 32
  • Most common reasons for declared disasters: Floods and Hurricanes

A major disaster, like a structure fire or a hurricane, can cause excessive damage to your business property. It is therefore important that your coverage levels are high enough to enable you to replace damaged or destroyed items without incurring a large financial loss. Some businesses in Frederick are also prone to damages caused by flash flooding. If your business is at risk, an independent agent can ensure that you are protected against this costly hazard by helping you secure a commercial flood insurance policy through the NFIP. Talk to your agent for more information.

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Business Interruption Insurance for Frederick Businesses

Damage to your business-owned property isn’t the only expensive hazard you need to be concerned about during a catastrophic event. In some cases, a major disaster can force you to close down your business for weeks, or even months, while repairs are made. Business interruption insurance provides a continuation of income during the times that your company is forced to close because of damage caused by a covered event, like a fire or severe storm. This insurance enables you to continue to pay employee salaries and regular expenses like loan payments until you are able to resume normal business operations.

Workers' Compensation for Frederick Businesses

Employees sometimes get injured while working. From physical injuries, like concussions and broken bones, to illnesses, such as those caused by exposure to toxic substances, your company is responsible for covering the associated costs. Failure to do so could result in your business facing a liability lawsuit.

Workers’ compensation insurance protects employees and employers alike. Often referred to as “workman’s comp,” this insurance is designed to cover your workers’ medical treatment and lost wages if they are hurt on the job. It can even pay out benefits to surviving family members in the unfortunate event that an injury is fatal or leads to permanent disability. Most Maryland businesses are required to include workers’ compensation as part of their business insurance portfolio. Exceptions are made for:

  • Sole proprietors
  • Agricultural employers with fewer than three full-time workers
  • Agricultural employers with an annual payroll below $15,000
  • Agricultural office workers
  • Independent contractors on farms (other than migrant laborers)
  • Owner-operators of large tractor-trailers

An independent insurance agent can help you obtain suitable coverage through Maryland’s state-administered fund or through a commercial provider, whichever is the better choice for your business.

Employee Benefits for Small Businesses in Frederick

Frederick businesses that employ at least 50 full-time workers are required to provide them with subsidized healthcare coverage. Regardless of how many workers you employ, you may want to consider investing in employee benefits like life insurance and health insurance. Doing so may earn your business a tax credit as well as make you a more competitive employer. 

  • Average amount spent on healthcare coverage by MD businesses: $944,612
  • Ranked 33rd for highest medical insurance costs in the US
  • Average annual cost of health care in MD: $5,654/person or $15,820/family

Health insurance is expensive, but an independent agent can help you find suitable coverage at a competitive price. There are many different policy types and options for you to choose from, so you may find it beneficial to have the guidance of a local insurance professional when you are shopping for employee benefits products.

Why Work with an Independent Agent?

There is no such thing as a one-size-fits-all business insurance policy. There are a number of insurance products and options available to you, so it is possible to build a comprehensive commercial insurance plan that is fully customized to meet the specific needs of your business. Independent insurance agents can work with a number of different insurance companies to help you build a fully comprehensive business insurance plan at a competitive price. 

Find an agent with an office in Frederick to get started.

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https://www.census.gov/quickfacts
https://www.fema.gov/disasters
http://www.naic.org/prod_serv/AUT-PB-14.pdf
https://www.nfib.com/content/legal-compliance/legal/workers-compensation-laws-state-by-state-comparison-57181/
https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/alter-benefits-attract-retain.aspx
https://www.business.org/hr/benefits/top-reasons-to-offer-employee-benefits/
http://www.city-data.com