Popular Questions about Business Insurance in Rhode Island

Hazards such as severe weather events, property crimes, and liability lawsuits often result in very expensive damage. Business insurance is designed to protect your company from the financial losses it may face due to these and other other potential risks.

This coverage can prove quite beneficial as is evidenced by the fact that last year alone, businesses in Rhode Island collected approximately $476 million in insurance claims.

A local independent agent can help you build a customized business insurance plan that is suitable to meet the specific needs of your particular company.

Statisticians predict that an estimated 40% of all small businesses are likely to experience a property damage or general liability lawsuit setback in the next 10 years. These lawsuits can become quite expensive. Consider this: customer slip-and-fall injuries result in business insurance claims averaging $20,000 per incident.

Lawsuits aren’t the only expensive hazard faced by businesses. Here are some other common hazards American companies have been using their insurance to cover:

  • Theft and burglary: Average cost per claim is $8,000
  • Water damage and freezing pipes: Average cost per claim is $17,000
  • Wind and hail damage: Average cost per claim is $26,000
  • Fire damage: Average cost per claim is $35,000

Business insurance is designed to cover losses associated with a variety of potential hazards so that your business doesn’t have to.

If your inventory is damaged, if a customer files a liability lawsuit against your company, if a worker is severely injured on the job, or if a severe weather event forces your business to close down for several weeks, having a solid business insurance policy package can mean that you don’t have to worry about how these exposures will affect your business’s bottom line.

Here are some of the things you can expect a well-built business insurance policy package to do for our business:

Pay For Damage To Your Building

  • Example: A tree falls on your office building.

Pay For Damage To Your Business Property

  • Example: A fire destroys all your computers.

Pay For Damage To Someone Else’s Property

  • Example: A contractor does a poor job of installing a cabinet, resulting in its falling and breaking homeowner's kitchenware.

Pay For Someone Else’s Medical Bills

  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pay For Accidents in Company Vehicles

  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pay For Employee Injuries & Compensation

  • Example: An employee falls off a ladder at work and can’t work for two weeks.

A business insurance policy is not required by law. However, some of the commercial insurance products that are often included in a comprehensive business insurance policy package may be. For example:

  • Many financial institutions will require you to have business insurance coverage before they will agree to finance a business loan or line-of-credit.
  • In Rhode Island, businesses that have at least four employees are required by law to carry workers’ compensation insurance.
  • Contracting firms are frequently to show proof of contractors insurance before they can be hired to do a job.
  • Businesses that have company owned cars, trucks, vans, or buses will need to cover these vehicles with commercial auto insurance.

To learn more about coverage that your business may need to have, you can talk with a local independent insurance agent.

Business insurance rates are calculated according to a number of factors such as the type of business you have, the value of your business assets, the number of workers you employ, your company’s various liability exposures, and the amount and types of coverage you want to purchase. 

Coverage needs can vary significantly from one business to the next, so it is a good idea to work with an experienced insurance agent who can help you put together a comprehensive policy package for your company. These agents can ensure that you are getting the right coverage for each of your business’s potential exposures while helping you avoid paying for coverage that is not a good fit.

Also, because independent agents can work with multiple insurance companies, they can search for the best price for each type of coverage you need. Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point of contact with your local independent insurance agent.

Yes! There are more than 150 independent agencies in Rhode Island who are ready to help.

These experienced agents can work with several different insurance providers to find you build a comprehensive and competitively priced business insurance portfolio. Contact an agent near to learn more and to get help making sure your business is fully covered against each of its potential exposures.

How does business insurance work?

Find the Best Insurance in Your City

National Business Insurance Stats

Number of businesses in the US: 27,626,360

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

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


  • Providence, RI
  • Business Insurance Common Coverage Options
  • Property: Hazards like theft, vandalism, and accidental fires can lead to large costly business property losses, as can damage caused by Providence’s damaging weather events like hurricanes, hail, and severe storms. Fortunately, when you have the right business insurance in place, your company will be able to repair damage, replace lost property, and continue to function without experiencing a large financial loss.
  • Commercial auto: Commercial auto insurance can protect your business from facing large liability costs if one of your drivers causes an accident in a company-owned vehicle. Rates are based on a number of factors like your employees’ driving records and the types of vehicles you are covering. For example, it costs far more to insure a 12-passenger van than a cargo van since your company’s liability risks are greater when you are transporting passengers.
  • Workers’ compensation insurance is designed to cover the cost of medical treatments, lost wages, and other expenses related to injuries or illnesses your employees may suffer while doing their jobs. It is required for nearly all Rhode Island businesses that have at least four employees. Workers' compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.


  • Cranston, RI
  • Business Insurance Common Coverage Options
  • Property: Having a sufficient amount of commercial property insurance can shield your company from losses related to hazards like accidental fires, property crimes, and severe weather events like hurricanes and electrical storms. You can make sure your business is properly insured by working with an independent insurance agent in Cranston.
  • Commercial auto: If your Cranston business owns a vehicle or fleet of vehicles, it will need to include commercial auto insurance in its business insurance policy package. Rates for coverage can vary according to the number and types of vehicles you are covering, as well as the risk of collisions where your employees will be driving. If you engage in interstate commerce, you will need to make sure that your coverage meets federal as well as state minimum coverage requirements.
  • 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 Cranston business has at least four employees, you are required by 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.


  • Warwick, RI
  • Business Insurance Common Coverage Options
  • Property: Most business owners invest a lot into their assets such as computers, furniture, tools, machines, outdoor signs, 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 hurricane. Find the policy and rate that works best for your Warwick business by teaming up with a local independent agent.
  • Commercial auto: If your business owns a vehicle or a fleet of vehicles, you may benefit from having the added liability coverage that comes with a commercial auto insurance policy. This is because liability lawsuits often result in higher judgements when they are brought against businesses. 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 your city.
  • Workers’ compensation insurance can cover the cost of medical bills and lost wages for your workers if they are injured on the job or are stricken with an occupational illness. If your company has at least four employees, this coverage is mandatory. Rates are based primarily on your company’s overall payroll and the likelihood that your employees will be injured based on the types of jobs they do.


  • Pawtucket, RI
  • Business Insurance Common Coverage Options
  • Property: You will want to be sure that your business property is covered at levels that will allow you rebuild, repair, or replace damaged property as needed. Some of the severe weather that is common in Pawtucket includes hurricanes, snowstorms, water main breaks, and floods. A local independent agent will be aware of the risks you face as a business owner in this city and can ensure that your business insurance policy package includes all the coverage you need.
  • Commercial auto: Whether you are insuring a company car, a delivery van, or a fleet of construction trucks, commercial vehicle insurance can protect your company against losses related to liability lawsuits and property damage. If your business engages in interstate commerce, a local agent can ensure that your coverage meets both the state and the federal coverage requirements so that your business is compliant with the law.
  • Workers’ compensation insurance is required by state law if you employ at least four workers in Pawtucket. This insurance can cover medical treatments, lost wages, and other costs associated with occupational illnesses and injuries that occur on the job. Every type of business has its own risks when it comes to employee safety. Some jobs are simply safer than others. That is why workers' compensation rates often vary significantly from one business industry to the next.


  • Woonsocket, RI
  • Business Insurance Common Coverage Options
  • Property: The crime rate in Woonsocket is relatively high. This small city sees more than 550 thefts and 250 burglaries every year. This makes it particularly important for you to ensure that business assets are sufficiently covered against risks like shoplifting, cyberattacks, 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: Many businesses in Woonsocket have company-owned cars, trucks, vans, or buses. If yours is among them, you will need 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 local independent agent can help you find a suitable policy at a competitive price.
  • Workers’ compensation insurance covers expenses like medical bills and lost wages for workers who are injured while doing their jobs or who are stricken with an occupational illness. It is required for nearly all Rhode Island businesses that have at least four employees. Rates for this coverage are assigned according to your company’s overall payroll amount and the types of jobs your employees do.