Popular Questions about Business Insurance in Vermont

Business insurance is designed to safeguard your company against financial losses caused by hazards such as severe weather, property crimes, and liability lawsuits. This insurance can prove quite beneficial as is evidenced by the fact that in 2019 alone, businesses in Vermont collected approximately $663 million in insurance claims.

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

Liability lawsuits can be quite expensive for businesses to deal with. Take, for instance, a customer slip-and-fall injury. The average amount paid out in insurance claims to cover the liability expenses incurred by businesses for these injuries is $20,000.

It is not uncommon for liability lawsuits filed against businesses to result in judgments of $1 million or more. That is why having the right commercial liability coverage in place is so important when you are building your business insurance policy package.

Here are some other common hazards small businesses in America have been using their business insurance to cover:

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

A local independent insurance agent can help you be sure that you have the right coverage in place to handle any of the hazards that might impact your Vermont business.

There are several ways that business insurance can shield your company from financial losses. If your inventory is damaged, if a customer files a liability lawsuit, or if an employee is severely injured on the job, as long as you have the right business insurance coverage in place, you won't have to worry about the related expenses will affect your company’s bottom line.

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

  • Pay for damage to your business property
  • Example: An electrical storm sparks a fire at your company warehouse. Tens of thousands of dollars worth of inventory is damaged by the flames and smoke, and it must be thrown out.
  • Pay for someone else’s medical bills or property damage
  • ExampleA customer in your is seriously injured when a product display topples over.
  • Pay for accidents involving company vehicles
  • Example: One of your product representatives is distracted by the GPS while driving to a sales demonstration in a company van.
  • Pay for employee injuries and work-related illnesses
  • ExampleAn employee at your manufacturing plant suffers a debilitating lung infection after years of inhaling toxic fumes.
  • Provide a continuation of income during a forced closure
  • Example: A windstorm causes a tree to uproot and it falls onto your business, causing significant structural damage. It takes several weeks before repairs can be made and damaged equipment and inventory can be replaced so your company can resume normal operations.

A business insurance policy in and of itself is not required by law in Vermont. However, certain types of coverage that are typically included in business insurance policy packages may be required. For example:

  • Businesses that have company-owned vehicles are required by Vermont law to carry commercial auto insurance that meets or exceeds state-mandated minimum coverage amounts.
  • With very few exceptions, all employers in Vermont are required by state law to carry workers’ compensation insurance.
  • Construction, renovation, and other contracting firms are usually required by their potential clients to show proof of contractor’s insurance before they can be hired to do a job.
  • Business owners who want to take out a commercial loan or line of credit typically need to show their financial institution proof of business insurance before they can qualify for funding.

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

Commercial insurance premiums are calculated using a number of factors such as:

  • The type of business you own
  • The value of your company assets
  • The number of workers you employ
  • Your liability coverage needs
  • The amount of coverage you want to purchase

Insurance coverage needs can vary significantly from one business to the next, so it is best to talk with an experienced insurance agent when you are working to build comprehensive, yet affordable, policy package for your company.

Independent agent agents can help you make sure that you are getting the right coverage for each of your company’s potential exposures while avoiding purchasing policies your business does not need. Also, because they are free to work with multiple insurance providers, 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 agent.

Yes! There are currently 107 independent insurance agencies in Vermont. These agents are ready to help you find the best and most affordable coverage for your business.

Independent insurance agents can work with several different insurance providers to find you build a comprehensive and competitively priced business insurance portfolio. Contact an insurance agent near you to discover how much time and money you can save by working with one of these experienced and knowledgeable insurance professionals.

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

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Barre1,0062.790.12
Bennington1,4543.420.87
Brattleboro1,7555.871.30
Burlington4,5472.840.31
Colchester1,7261.210.00
Essex1,1912.710.51
Essex Junction1,0242.690.50
Hartford1,1812.611.05
Middlebury7561.280.35
Milton1,1121.810.00
Rutland1,8553.660.98
Shelburne8351.020.51
South Burlington2,8142.640.05
Springfield7724.740.11
Williston1,4021.740.21
  • 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 is a good idea since floods are a common risk in Burlington, and commercial property insurance does not cover against this hazard. Make sure your business property is fully insured by consulting an independent insurance agent near you.
  • Commercial auto: If your business owns a vehicle or a fleet of vehicles, you will need to cover the cars, vans, truck, 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 can cover 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. For instance, in July of 2009, a particularly destructive hailstorm hit in nearby Westford. Hailstones measures as large as 3 inches in diameter and caused 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 damages 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 a number of 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 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 because of 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, especially on the Vietnam Veterans’ Memorial Highway (I-89). 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 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 probably invested a lot into your company’s various assets including items such as 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. Find a policy and rate that works for your Rutland business by teaming up with a local independent agent.
  • 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. A local independent insurance agent can help you find a suitable policy at a competitive price.
  • Workers’ compensation insurance covers medical bills and disability pay 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 in accordance with 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. Talk to a local independent insurance agent to learn what you can do to safeguard your company and thereby lower your costs for coverage.
  • 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. If you engage in interstate commerce, a local agent can ensure that your policy’s coverage amounts meet both state and federal minimum requirements.
  • Workers’ compensation insurance: With a few exceptions, workers’ compensation insurance is required of all employers in Vermont. This insurance can cover medical treatments, 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.