Business Insurance in Mercer Island, WA

Experts break down commercial insurance costs, coverages, companies, and more for Mercer Island's business owners.

Written by Meg Stefanac
Written by Meg Stefanac

Financial blogger and business owner, Meg Stefanac, has more than 15 years experience working in the financial services industry and enjoys helping individuals make solid financial decisions. Meg has extensive experience writing about insurance and finances and is a key contributor to

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Businesswoman Texting While Sitting In The Office. How to Find the Best Business Insurance Coverage in Mercer Island, Washington.

Mercer Island is home to nearly 3,000 businesses, most of which are small, privately owned firms. If you own a company in this small Washington city, business insurance can shield it from financial losses when disaster strikes.

Local independent agents can identify your company's various exposures and recommend the best and most affordable business insurance products to cover your business against each of them. Set up a one-on-one consultation with an independent insurance agent near you to get started.

Is Business Insurance Required in Mercer Island, WA?

Washington state law does not require you to have a business insurance policy. However, there are times when some businesses may need to carry some of the insurance products that are often included in business insurance policy packages. For instance:

  • If you have taken out a business loan or line of credit, your lender may require you to carry commercial property insurance until you have repaid your loan in full.
  • If your business owns a vehicle or fleet of vehicles, the state requires you to cover them with commercial vehicle insurance.
  • Washington law mandates that you carry workers' compensation insurance if your business has at least one employee.
  • If you are a contractor, prospective clients may require you to show proof of liability coverage before hiring you to do a job on their property.

Whether or not you need to have it, business insurance can be beneficial because it offers protection if a liability lawsuit, natural disaster, property crime, or forced closure impacts your company's bottom line.

How Much Does Business Insurance Cost in Mercer Island, WA?

Business insurance premiums can vary significantly from one company to the next. Insurance companies base their costs on several factors like:

  • The industry in which your business operates
  • Your company's expected annual revenues
  • Whether your business is open to the public
  • The value of your company-owned property
  • The number of workers you employ and the types of jobs they do
  • Your company's various liability exposures
  • The types of property coverage you want to buy for your business

Every insurance company has a specific way of assessing risk and calculating premiums. Therefore, you are likely to be quoted different costs for coverage by every company you contact to inquire about rates.

Comparison shopping lets you choose the insurance company that offers the coverage your business needs at the most competitive price. Independent insurance agents can save you time and money by comparison shopping on your behalf.

What Does Business Insurance Cover in Mercer Island, WA?

Low-risk businesses with less than $1 million in annual revenues and fewer than 100 employees can sometimes get all the coverage they need through a simple business owners policy (BOP). While rather limited in the coverage they can provide, these policies are relatively inexpensive.

Business owners policies include three types of coverage:

You can build a customized business insurance policy package by supplementing a basic business insurance policy with any additional commercial insurance policies and coverage options that are relevant to your Mercer Island business.

What Does Small-Business Liability Insurance Cover in Mercer Island, WA?

Business liability insurance is designed to cover legal defense fees, court costs, settlements, judgments, and other related expenses if your company faces a liability lawsuit. However, you need to make sure your business has the right kinds of liability coverage in place ahead of time.

All BOPs and business insurance policies include general liability insurance as a standard part of their coverage. This insurance is designed to protect against some of the most common liability risks businesses face. It includes:

  • Premises liability insurance: This covers third-party injuries and property damage caused by accidents on your business premises.
  • Product liability insurance: This covers injuries, illnesses, and property damage caused by products your company sells or produces.
  • Advertising liability insurance: This covers against accusations of copyright infringement, deceptive pricing, false advertising, and other illegal marketing errors.

Unfortunately, general liability insurance alone is not enough to cover most businesses against all of their liability exposures. Depending on what your company does, you may need to supplement your coverage with other commercial liability products. Some of your many available options include:

  • Employment practices liability insurance (EPLI): This covers accusations of illegal employment practices like harassment, discrimination, retaliation, and wrongful termination.
  • Errors and omissions insurance (E&O): This covers your business and the people who work for you if negligence, inadequate work, or other professional errors cause your clients to experience financial losses, injuries, or other harm.
  • Cyber liability insurance: This covers your company's financial obligations to affected individuals if criminals hack into your computer network and access their personal, financial, or other data.
  • Liquor liability insurance: This is for businesses that sell or serve alcohol. If you or one of your employees furnishes alcohol to an underage patron who goes on to cause property damage or injuries to others while intoxicated, Washington's dram shop law allows the injured party to sue your business. Liquor liability insurance covers against this risk.
  • Workers' compensation insurance: This shields your company from potential liability lawsuits by covering your employees' medical treatments and lost wages if they are injured on the job or are diagnosed with an occupational illness. It is required for nearly all employers in this state.

These are just a few of your many commercial liability product options. An independent agent can help you be sure that all of your company's liability exposures are covered by the right policies.


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What Kinds of Property Coverage Does Business Insurance Offer in Mercer Island, WA?

Commercial property insurance is designed to cover repair or replacement costs if your company-owned property is damaged or destroyed by a covered event. Covered hazards that are likely to affect businesses on Mercer Island include:

  • Fires and explosions, including damage caused by smoke and fire-fighting
  • Property crimes, like theft and vandalism
  • Falling objects, like trees and hailstones
  • Water damage, except damage caused by floods
  • Severe weather events, like thunderstorms, windstorms, snowstorms, ice accumulation

Commercial property insurance has a few limitations, so you may want to supplement it with additional policies such as:

  • Inland marine insurance: Commercial property insurance only covers your company's property when it is on your business premises. Inland marine insurance covers this property when in transit over land and while being kept in another location like a job site or a warehouse.
  • Flood insurance: Commercial property insurance does not cover flood damage. Fortunately, only 2% of the properties on Mercer Island have at least a 26% chance of sustaining significant flood damage in the next 30 years. If your business against is at risk, you can protect it with a commercial flood insurance policy through the National Flood Insurance Program (NFIP).
  • Earthquake insurance: Mercer Island has a very high risk of earthquake activity. The US Geological Survey reports an 85.95% chance that a magnitude 5.0 or greater quake will occur within 30 miles over the next 50 years. Because commercial property insurance does not cover seismic events, you may want to consider supplementing your business insurance policy with commercial earthquake insurance.

Independent insurance agents live and work in your community, so they understand the risks you face as a business owner in Mercer Island. They can help ensure that your business is suitably covered against the hazards it may encounter.

How Can Business Interruption Insurance Protect Companies in Mercer Island, WA?

If a disaster like a severe storm or a structure fire impacts your businesses, property damage isn't the only expensive risk you need to worry about.

If the damage to your company is significant, you may need to halt operations for several days or weeks while repairs are made. That is why business interruption insurance can prove beneficial. 

Business interruption insurance is designed to provide your company with a continuation of income while it is shut down because of damage caused by a covered event.

This insurance can provide your company with the funds needed to continue paying regular expenses like salaries, taxes, bills, loan payments, and rent until you can resume normal business operations.

What about Products to Include in Employee Benefits Packages?

You can make your business more attractive to the area's most qualified workers by offering good benefits like paid time off, insurance coverage, and pension plans. If you are thinking about building an employee benefits package, an independent insurance agent can help you find suitable:

Your agent can also help by ensuring that the health insurance plan you choose for your employees is one that many local doctors and medical facilities accept so your employees can easily obtain care when needed.

What Are the Best Business Insurance Companies in Mercer Island, WA?

The best business insurance companies in Washington are the ones that have consistently demonstrated competency in providing exceptional customer service, reliable coverage, and competitive rates.

Independent insurance agents in Mercer Island have developed partnerships with some of the area's top insurance providers. This means you can expect any business insurance policies your agent recommends to you are offered by trustworthy companies.

How Can an Independent Agent in Mercer Island, WA Help Me Shop for Business Insurance?

Independent agents are available to do a full risk assessment of your business to identify all its potential risks. Your agent can then recommend the right business insurance products to cover against each exposure.

Independent agents save you time and money by shopping around for the best and most affordable policies to meet all of your company's needs. When you are ready to start comparing customized business insurance quotes, arrange an obligation-free meeting with an independent insurance agent near you.

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