Find the Best Business Insurance Options in Minnesota
There are over 534,000 small businesses in Minnesota, representing 99.4% of the businesses in the state. Small businesses employ 1.3 million people in Minnesota, making small businesses essential to the state’s economy.
Business owners in Minnesota face numerous risks, including property damage caused by crime, severe weather, fires, and natural disasters. And a liability claim or a lawsuit can lead to financial devastation that is difficult to overcome for any business.
A comprehensive business insurance program can help you repair and rebuild damaged property after a disaster. And 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 Minnesota.
Best Business Insurance Companies in Minnesota
Where should you start your search for business insurance in MN? We’ve noted some of the best business insurance companies near you. They are highly rated for their mix of valuable coverage offerings and competitive pricing.
- 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.
- Progressive: Progressive is based in Ohio but offers business insurance across all 50 states, including Minnesota. Minnesota business owners can look to Progressive for most of their business insurance needs.
- Hanover Insurance Group: Together with local independent agents, Hanover Insurance Group offers standard and specialized insurance protection for small and mid-sized businesses.
- Nationwide: Nationwide provides business insurance and other popular types of insurance coverage in Minnesota. The company is headquartered in Columbus, OH, and is represented by independent insurance agents in 50 states, including Minnesota.
- West Bend: West Bend is a relationship-based company with core values that emphasize excellence, integrity, and responsibility. The company offers highly-rated business insurance in Minnesota.
An independent insurance agent in your area can help you learn more about these and other Minnesota business insurance companies. A local agent can help you get competitive quotes for the coverage that fits your Minnesota business insurance needs.
Minnesota Business Insurance Requirements
Business insurance is a package of insurance policies that cover your property and liability risks. Business insurance is not required in Minnesota, but if your business owns any vehicles, you will likely have to buy commercial vehicle insurance that complies with the state’s car insurance laws.
In addition, employers in Minnesota with one or more employees must also obtain workers’ compensation insurance. Workers’ compensation insurance covers employees who are injured on the job. It pays for their injury-related medical care and lost wages if they can’t return to work while recovering.
An independent insurance agent near you can help you learn more about Minnesota’s business insurance requirements.
What Business Insurance Covers in Minnesota
When you purchase business insurance in Minnesota, you’ll buy several individual policies or a package of policies designed for your type of business. Business insurance in Minnesota will typically include the following types of policies that cover your property and liability risks:
- Commercial general liability insurance (CGL): 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 Minnesota may include additional coverage types or policies that cover your unique risks.
Liability Coverage Options for Small Businesses in Minnesota
Lawsuits against businesses are common. Whether a store owner is responsible for a customer trip and fall or a food manufacturer is responsible for sickening hundreds with tainted products, negligence claims can quickly destroy a business.
A commercial general liability (CGL) policy is a type of small business liability insurance that offers broad protection from lawsuits. It covers the injured party's medical expenses and any property damage you are responsible for. And it covers court costs, attorney fees, and even settlements or judgments that you must pay to injured parties.
Most businesses need general liability coverage, but a CGL policy does not cover every kind of liability risk. Additional small business liability policies are available when your CGL policy isn’t sufficient.
Talk to your independent insurance agent about why you might need other liability coverage options like commercial umbrella insurance, employment practices liability insurance, cyber liability insurance, professional liability insurance, or any additional customized small business liability protection.
Property Coverage Options for Small Businesses in Minnesota
Commercial property losses can originate in various ways and cause tremendous financial harm to your business. These basic business property coverage options can help you repair or rebuild your physical losses and can even compensate you for lost income while you recover after a covered property loss.
Commercial property insurance protects you when your commercial property is damaged by someone else or by some type of unforeseen event like a fire or severe weather. You need business property insurance if you own your building or have tangible business assets (furniture, computers, fixtures, inventory, materials, tools, etc.). It helps you pay for repairs or to replace damaged or destroyed commercial property after a covered loss.
Business interruption insurance is a separate coverage that is typically included as part of a commercial property policy. It is designed to protect your earnings if your business cannot operate because of damage after a fire, hail, wind, equipment breakdown, or another covered event. This means that if you’re forced to close your doors for some time in order to make repairs or rebuild, 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 Minnesota.
Other Insurance Options for Small Business Owners in Minnesota
Most businesses in Minnesota are likely to need more than just basic property and liability insurance. Other insurance options for small business owners in Minnesota 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 that are injured on the job.
- Commercial vehicle 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 Minnesota. An independent insurance agent can ensure all of your Minnesota business insurance needs are met.
Average Cost of Business Insurance in Minnesota
Every business has different coverage needs and the types and amounts of coverage you need probably have the greatest impact on the cost of your business insurance. And a variety of other important factors, such as the following, are used to determine how much you'll pay for your business coverage:
- The company’s annual gross sales and payroll
- The company’s employee count
- The size and physical location of the company
- The company's physical assets (buildings, vehicles, machines, equipment, inventory, etc.)
- The nature of the business (What does the company do?)
- The company’s prior insurance claims history
An independent insurance agent can help you understand all of the risks you face and get quotes for affordable business insurance in Minnesota.