What are the requirements for business insurance in Georgia?
Most states have specific requirements for business insurance and Georgia is no exception. Although Georgia does not require businesses to carry Workers’ Compensation insurance, many businesses must insure themselves against general liability risks. This includes businesses that sell alcohol or that provide professional services, such as accounting firms and insurance agencies.
If a business employs a number of workers, the company also needs to consider Workers’ Compensation insurance to protect employees.
Businesses may choose to purchase other types of coverage in addition to the required coverages to protect themselves against risks and losses.
What are the types of business insurance in Georgia?
Here are some common types of business insurance and what they cover:
General liability insurance
It covers legal expenses related to injury or property damage caused by you or your employees. It also covers claims due to advertising mistakes or plagiarism. Because every business is different, there isn’t one general liability insurance policy that can protect all businesses.
As a result, many general liability policies exclude certain items. Some of the most common exclusions include:
- Professional liability or errors and omissions
- Vehicles or equipment used in business operations
- Fines, penalties, and corporate taxes
- Intentional injuries or property damage caused by the insured person
- Workers’ compensation insurance
- Personal injury, including libel and slander claims
Professional liability insurance
This policy covers legal expenses related to negligence, errors, or omissions on the part of your employees. This type of insurance may be required by law, depending on the industry in which you operate. Each insurance company sets its own coverage, so exclusions can vary across policies.
That said, some common exclusions include:
- Claims arising out of violation of law
- Covering business partnerships or joint ventures
- Fraudulent or criminal acts by an insured
- Intentional acts including assault, battery, and libel
- Claims that did not arise out of the performance of professional services for which coverage was purchased
Business owners’ policy (BOP)
Combines general liability insurance with property insurance, providing an all-in-one solution for smaller businesses.
Commercial property insurance
This policy pays for damages to your office building or other commercial properties in the event of disasters such as fires, storms, theft, or vandalism. This type of insurance usually does not cover floods and earthquakes, so separate policies should be purchased for those risks.
Workers’ compensation
The policy covers medical costs for any employees who are injured at work.
A workers’ compensation business insurance policy will exclude coverage for the following:
- Employment-related injuries that occurred outside of the United States.
- Employment-related injuries that are intentional.
- Injuries caused by war, rioting, nuclear explosion, or other similar causes.
- Injuries caused by the employer’s illegal activity.
- Employment-related injuries caused by a sickness (unless it is an occupational illness).
How much does business insurance cost in Georgia?
Here are some of the factors that affect the cost of a business insurance policy:
Business size and industry.
Businesses with more employees and higher revenue may pose a greater risk of liability claims, so they generally pay more for business insurance coverage. The industry you’re in may also affect your rates. This is because some industries, such as construction and manufacturing, carry a higher risk of accidents or property damage than other industries — resulting in higher insurance premiums.
Location and premises.
The location of your business may affect what you pay for business insurance. For example, businesses located in areas prone to natural disasters, like hurricanes or earthquakes, may see higher rates for some coverages. Also keep in mind that if your business is located in a state with high liability caps, you may need to buy extra coverage to protect yourself from larger claims (especially if you own a small business).
The claims history of your business.
If your company has a history of filing frequent or expensive claims, you can expect to pay more for your policy.
Number of Employees
If you have many employees, there’s a higher chance that one will file a workers’ compensation claim. The more people on staff, the greater the chances of someone getting hurt on the job or needing medical attention for an illness related to their work environment. If employees drive company vehicles or travel to client sites, they may get into accidents that lead to liability claims.
How to choose the best business insurance in Georgia
Here are some tips to help you get the right coverage at the best price:
- Determine which coverages are legally required. This will vary depending on where you live and what type of business you operate. For example, if you have employees, you may be required to carry workers’ compensation insurance in your state.
- Decide which additional coverage options make sense for your business. Some common options include general liability insurance and property insurance to protect you from lawsuits and damage to your physical assets. If you have employees who drive for work purposes, commercial auto insurance is another option to consider.
- Shop around for coverage from multiple insurers. It’s important to compare quotes because different insurers will charge different premiums based on factors such as your location and industry type. Keep in mind that larger insurers aren’t always the best choice — smaller carriers often specialize in certain industries (such as construction), while their larger competitors might offer more generic coverage options.
- Location. If your business is in a high-crime area or a region prone to natural disasters, you might pay more for certain types of coverage.
- Loss history. If your business has had frequent losses or large losses, you’ll probably pay more for coverage because you’re considered a higher risk.