Business Insurance in Vermont FAQ - Quick Answers

In order to know your exact business insurance costs you'll need to obtain quotes, but you can understand what risk factors Vermont carriers use to rate your policies below:

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

In Vermont, you won't be required to carry most business insurance by law, but the following two policies are mandated if you fit their criteria:

Each Vermont business will have commercial coverage that is unique to its daily operations. However, they will start with foundational policies such as the ones below:

Your business insurance in Vermont is likely to start with a general liability policy. Check out how this policy protects your operation below:

Health insurance plans in Vermont are optional for small businesses with under 50 employees. However, if you want to offer health coverage as an added benefit, then you can obtain quotes through a licensed independent insurance agent for free.

In Vermont, Nationwide, Hiscox, and Hanover insurance companies come highly rated for business protection. This is because of their superior claims handling and exceptional coverage offerings.

Do You Know What Your Business Insurance Covers in Vermont?

Find the Best Business Insurance in Your City

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. of businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Barre1,0062.340
Bennington1,4544.491.07
Burlington4,5472.540.58
Colchester1,7261.190.06
Essex1,1911.890.27
Hartford1,1813.110.62
Milton1,1121.270.18
South Burlington2,8141.630.41
Springfield7722.810.11
Williston1,4020.790.39
  • Burlington, VT
  • Business Insurance Common Coverage Options
  • Property: Having sufficient commercial property insurance can shield your company from losses related to hazards like accidental fires, property crimes, and severe weather events. Adding a commercial flood insurance policy to your coverage portfolio may be relevant to consider, since floods are a common risk in Burlington, and commercial property insurance does not cover this hazard. 
  • Commercial auto: If your business owns a vehicle or a fleet of vehicles, you will need to cover the cars, vans, trucks, or buses with commercial vehicle insurance. Your rates will be based on several factors, including the number and types of vehicles you are covering, details about where and how these vehicles will be used, and information about the employees who will be operating them.
  • Workers’ compensation insurance: This insurance covers medical bills and lost wages for workers who are injured on the job or come down with an occupational illness that requires medical attention. Rates are based on your company’s overall payroll and the potential risks faced by your employees according to their job classifications.


  • Essex, VT
  • Business Insurance Common Coverage Options
  • Property: The risk of hailstorms in Essex is not especially high, but that does not mean it doesn’t exist. Hailstones can cause a great deal of property damage for area residents and businesses. A solid commercial property insurance policy can cover your company’s losses if a hailstorm or other severe weather hazard causes damage to your business property.
  • Commercial auto: You are required to have commercial auto insurance if your business owns a vehicle or a fleet of vehicles. Rates are based on several factors like the types of vehicles you are covering. Large trucks, passenger vehicles, and trucks that transport hazardous materials will need to meet higher liability coverage requirements as mandated by the state.
  • Workers’ compensation insurance: This insurance covers the cost of medical treatment, disability pay, and other expenses related to injuries your employees may experience while doing their jobs. It is required for all employers in Vermont. Workers’ compensation rates are assigned according to your company’s overall payroll and the risk of worker injury based on the types of jobs your employees do.


  • Colchester, VT
  • Business Insurance Common Coverage Options
  • Property: Theft, vandalism, and severe weather events can all lead to large, costly business property losses, as can damage caused by structure fires. A fire could potentially break out at your workplace due to a machine malfunction, employee error, or even a lightning strike during an electrical storm. Fortunately, when you have sufficient commercial property insurance, your company will be able to repair the damage and continue to function without experiencing a large financial loss.
  • Commercial auto: Accidents can happen anywhere while driving. If your business owns a vehicle or fleet of vehicles, you will need to cover them with commercial auto insurance. Rates for coverage can vary according to the number and types of vehicles you are covering, details about the employees who will be driving them, and the risk of collisions where these vehicles will be driven.
  • Workers’ compensation insurance: This insurance covers medical expenses and disability pay for employees who are injured on the job. With very few exceptions, if your Colchester business has at least one employee, 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.


  • Rutland, VT
  • Business Insurance Common Coverage Options
  • Property: As a business owner, you have invested a lot in your company’s various assets, including machinery, inventory, computers, furniture, and supplies. Commercial property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged due to a covered event. 
  • Commercial auto: Many businesses in Rutland have company-owned vehicles. If yours is among them, you will need to cover your cars, vans, buses, or trucks with a commercial auto insurance policy that meets or exceeds Vermont’s minimum coverage requirements.
  • Workers’ compensation insurance: Covers medical bills and disability payments for workers who contract occupational illnesses or are injured while doing their jobs. It is required for nearly all Vermont businesses that have at least one employee. Rates are assigned according to the types of jobs your workers do and how much they are paid.


  • Bennington, VT
  • Business Insurance Common Coverage Options
  • Property: In addition to damage caused by severe weather events, crimes like theft and embezzlement can lead to expensive losses if you do not have sufficient business insurance. Therefore, you can benefit from the crime coverage offered by your business insurance policy.
  • Commercial auto: Whether you are insuring a delivery van or a fleet of semi-trucks, commercial vehicle insurance can cover your company’s increased liability risks as well as any expenses related to property damage.
  • Workers’ compensation insurance: With a few exceptions, workers’ compensation insurance is required of all employers in Vermont. This insurance can cover medical treatment, lost wages, and other expenses associated with workplace injuries and occupational illnesses. Every business has specific risks and hazards faced by its employees, which is why workers’ compensation rates can vary significantly from one business to the next.